by NUR HANANI AZMAN / pic by TMR FILE

BANK Muamalat Malaysia Bhd and CIMB Islamic Bank Bhd are joining Bank Islam Malaysia Bhd in the iTEKAD 2.0 programme to amplify it further to better serve the asnaf and B40 (bottom 40% income group) communities in surviving the pandemic effects.

Launched in May 2020, iTEKAD offers seed capital with an affordable microfinancing arrangement to eligible applicants.

It aims to empower eligible micro-entrepreneurs among asnaf and B40 individuals to achieve financial resilience, generate sustainable income, and contribute to the community.

Bank Islam CEO Mohd Muazzam Mohamed (picture) said for the initial phase of iTEKAD, Bank Islam collaborated with Majlis Agama Islam Wilayah Persekutuan (MAIWP) and SME Corp Malaysia.

“We allocated RM5 million by tapping into Bank Negara’s Micro Enterprises Facility fund for the programme. With the initial target of 100 micro-entrepreneurs, 98 business owners received financing approvals from Bank Islam as of July 31, 2021, totalling approximately RM1.8 million micro financing.

“Out of that number, 49 asnaf entrepreneurs received zakat (tithe) funds totalling RM205,000 through our collaboration with MAIWP, while SME Corp conducted six entrepreneurship and financial management training sessions for them,” he said in a statement yesterday.

iTEKAD is designed to mobilise social finance instruments such as zakat, sadaqah (alms), waqf (endowment) and social investment fund.

For its next phase, Bank Islam will expand iTEKAD coverage to Selangor and Perlis by collaborating with Teraju Ekonomi Asnaf Sdn Bhd (Teras) and Akademi Transformasi Asnaf MAIPs Sdn Bhd, which are subsidiaries of both states’ Islamic Religious Council.

Bank Muamalat CEO Khairul Kamarudin said the iTEKAD Mawaddah programme is unique as it incorporates the shariah innovation of two-tier mudarabah. He said under this new concept, the bank will source funds from investors to invest in businesses owned by B40 individuals and micro-entrepreneurs.

“The profit and loss of each business will be shared with the respective investors. The target industries under the iTEKAD Mawaddah programme are food and beverage (F&B), agriculture and gig economy.

“Entrepreneurs who participate in the programme will be provided financial advisory and halal certification.

“For the first phase of the iTEKAD Mawaddah programme, Bank Muamalat has targeted an investment fund from selected investors amounting to RM200,000 for 20 entrepreneurs from the F&B industry,” Khairul said.

CIMB Islamic CEO Ahmad Shahriman Mohd Shariff said its upcoming initiative, a rider entrepreneur programme, will lay the foundation for building sustainable income generation for a group from the underprivileged community through upskilling, structured training and job creation.

“CIMB Islamic’s rider entrepreneur programme will see the graduation of the first batch of participants in September, with options to further their interests in food delivery supported by grants for motorcycles.

“After completing the programme, they can also embark on further skill upgrading in pursuit of owning their own business. The programme will be operationalised through a seed fund of RM300,000,” he said.

Further details on these programmes will be announced by the respective banks soon.