By now, you might have known that I have set up and lead a group of Muslim financial consultants to promote cooperative insurance and shariah compliant funds in Singapore.
Many people thought that being a financial consultant is a very easy and glamorous job. Very flexible timing. You can work as and when you want. You are paid generous commissions. You get to travel all over the world for free.
It is further than the truth. What people don’t see is the hardwork. The rejections. The disappointment. The sacrifice. The failure, and persistency and willingness to get up back and move forward.
You fall, you rise up back.
You fall, you stand up again.
You fall, you bring yourself up to 2 feet and move forward again.
Step by step.
Just continue moving forward. Every single step counts. Move forward and build up your momentum.
One POWERFUL technique that I always share with my mentees, on how to magically transform your frustration, loss or failure into strength is to do a self reflection exercise by asking yourself 3 pertinent questions.
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Ask the following questions to transform frustrations, loss or failure into strength:
1) What must I learn from this incident so that I can be better tomorrow?
2) What must I learn so that when faced with the same situation, I will be better off?
3) Who can help to me to face the same problem so that it will become easy and easier to overcome?
For winners, frustrations, loss and failure gives inspiration for us to continuously learn and take action till we become better and stronger. We always work to change every challenge that we faced into an opportunity.
Only the naive would hope that everything goes along with his desires. Always prepare for the worst situation and strive consistently and persistently to achieve the best results.
I hope this post inspires you. Remember, when you faced with any kind of frustrations, loss or failure, ask these questions to transform them into strength: 1) What must I learn from this incident so that I can be better tomorrow?
2) What must I learn so that when faced with the same situation, I will be better off?
3) Who can help to me to face the same problem so that it will become easy and easier to overcome?
Share this blog post with your love ones and see you soon! Insya’Allah. 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
In my opinion, the secret recipe to the success in the development in Islamic finance in Singapore is to build our foundations and platform right locally first and then, scale it, expand globally.
I have listed the steps.
Build up our strong foundation of Islamic Finance for our local population first and then expand globally.
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The first crucial step is to introduce murabahah financing for Singaporeans who want to purchase our properties the shariah compliant way, as an alternative to conventional mortgage loans.
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No individual or entities in Singapore will give Qard Hassan, also known as interest free loan to our local population.
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Even if there are willing, charitable individuals/organisations, they are too few among us. The most pragmatic way is to set up the strong foundation, where transactions with mutual benefits can be established, yet it is shariah compliant.
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The success of any business endeavour lies on MARKET DEMAND.
Everyone needs a roof on our head.
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Murabahah financing is a good start. Under Murabahah financing, financial institution earns profit from a mark up of the cost price payable over number of financing years, while the buyers pay instalment yet do away with interest based transactions. Mutual Benefit! 🙂
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There are other shariah compliant financial instruments, that financial institutions can look, to introduce or expand in the market. Some examples:
Restricted and non restricted mudarabah account
Shariah Compliant Fund (already available in NTUC Income Cooperative)
Musharakah (Partnership between financial institutions and business owners on profit/loss sharing basis)
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. 2. Enhance Competitiveness Of Shariah Compliant Products in Singapore
. Example again in murabahah financing.
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The effective profit rate earn by financial institution needs to be comparable with the effective interest rate by conventional financing facilities.
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If we can create and maintain competitive shariah compliant instruments on a small scale on a profitable note, to make it bigger, and bring it to a global scale will be easier.
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In my interaction with Non Muslims from other countries, they like shariah compliant products in their country due to salient advantages.
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Example, competitive rates as compared to conventional ones and other benefits like, having one month “instalment holiday” at the end of the year, where they don’t have to pay for mortgage instalment for that particular month.
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. 3.Tax Exemption to smoothen certain process pertinent to Islamic Finance
. Again, example, in a transaction like Murabahah financing for properties.
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The seller has to transfer the ownership to the financial institution and the financial institution has to transfer again to the buyer.
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The transfer of properties or risk of ownership specifically is essential in Murabahah and cant be compromise.
.. Remove in between tax from such transactions, as it will add cost and reduce competitiveness in such financing activities.
. 4. Work with financial consultants and property agents
. Financial consultants and property agents are the frontline who deals with customers on financial transactions, every single day.
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Work with us.
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When sharah compliant instruments are introduced, we already have the database of clients, who are interested in shariah compliant products.
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Though our jobscope may seems more of an advisory role, we have been trained to sell. In order for the take up rate for shariah compliant products to skyrocket, it has to be sold. Incentivise the whole process. It is wishful thinking, to assume that shariah compliant products will move on its own, when introduce to the market.
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Education is also a key to the success of the promotion of a particular financial instrument. Engage us the practitioners by introducing educational grants and training schemes, that we can use to upgrade ourselves, specifically on Islamic Finance.
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. 5. Ability to sell cross borders transactions
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From my understanding, financial consultants in Singapore can only sell to locals.
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If we want to sell to foreigners, they must have a FIN number.
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Usually, they are PRs, Employment Pass, S Pass or Work Permit holders.
. Singapore has its advantages of its strong Singapore Dollar. Foreigners will love to diversify their investments, and if Singapore allows for such cross border transactions with stringent underwriting, that will help. Imagine money flows from neighbouring countries with sizeable Muslim population….
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Of course, this is just my thoughts as a practitioner in Singapore.
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After all the above has been done, only then Singapore is poised to attract the petro-dollars from the Middle East.
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Singapore, with its solid, working blueprint specifically on development of shariah compliant products, coupled with its inherent strengths is just a step away to champion Islamic Finance worldwide.
. What is needed then is just to identify what works on a small scale domestically, and expand it further, worldwide.
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
On this special occasion, I will like to give a present for my blog readers of HelmiHakim.com.
I will like to offer FREE access to my special email service, OtakJutawan.com where you get motivational quotes on finance every week for the next 3 years. Click below for more details. Insya’Allah.
Click the link below now to claim your FREE gift! 🙂
Note: The story that I’m about to share is a fiction, and not a reflection of reality in Singapore.
The story goes….
On a bright, Sunday morning at a housing estate in Yew Tee, Misnah was beaming ear to ear, excited because she is going to finally get married to the love of her life, Ahmad the following week.
She and Ahmad had diligently save money in their Al-Wadiah savings account, giving Hibah of 0.8%/annum and the money accumulated is just nice to pay for their combined wedding at a halal restaurant.
They have also bought their lovely freehold condominium with a special themed concept and successfully attain Murabahah financing.
Ahmad since the first day, he started working, had diligently, invested his money in a shariah compliant equity fund, and now making a superb profit. He is smart, because during the subprime mortgage crisis in year 2008, he did a lot of top up, thus enhancing his portfolio return by so much more. That money is just nice, for their honeymoon trip to Morocco and also to finance the renovation cost of their new house. Ahmad is smart because gain of profit through capital appreciation is not taxable in Singapore. Alhamdulillah, all the profits belong to him.
Their wedding ensued with love and a year later, they were blessed with a beautiful daughter, named Siti.
Little did Ahmad know, his wife had also been investing in shariah compliant REITs, earning quarterly dividends, enough to pay for pampers and milk.
Ahmad gets his family covered under Islamic Insurance Takaful, because he loves his family.
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They also heard that the government is building an expressway called PUE (Pulau Ubin Expressway) and just issued Sukuk based on the ijarah model.
The Sukuk or Islamic bond is shariah compliant because the returns is not from interest coupons but from the toll reapt from the specially designed ERP gantries. Once the cost of building the expressway is recovered, the Sukuk will be redeemed at par.
Meanwhile, Ahmad quit his job as an engineer to fulfil his childhood passion to run his own business. He and his friend form a musharakah partnership, with 60:40 share. To set up the factory, his partner and himself, do it via the Istisna contract with XYZ financial institution and purchase the special raw materials from a local distributor under Salaam contract.
Time flies, their only daughter, Siti has grown up and want to go to a university in UK. She gets service based ijarah financing method to pay for her tertiary education. Her parents did some savings based on non restricted mudarabah, since she was young, and the money is just enough to pay for her food and accommodation while she is studying in UK.
Upon graduation, she found her soulmate, got married and the cycle continues……
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Now, back to reality.
Many of you might have read about DBS winding down its Islamic banking unit, The Islamic Bank of Asia Limited (IB Asia).
When I chat with my friends, they told me, that this is not surprising. HSBC insurance removed its Takaful products a few years back. NTUC Income closed its sukuk fund, NTUC Income Amanah bond too. It is some kind of a downward trend. 🙁
So the pertinent question is, “Is there really potential for Islamic Finance to grow in Singapore?”
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In my opinion, Singapore is the best country in the world to establish and grow Islamic finance.
We have a strong, well respected government, and a reputable brand name of a reliable financial hub with proven track records. Our economy is sound. We are rated the top investment grade of AAA by Standard & Poor. Our finance industry in Singapore is well regulated, with competent and highly qualified financial professionals. We are honest, sincere and if contracts or partnerships were formed, we stick and hold by to it.
Islamic finance thrives in such environment. 🙂
Although some may argue that, Singapore lack the critical mass of domestic consumers for Islamic Finance products, I believe that Singapore’s Muslim population of 700,000 is quite a sizeable niche market to start on and expand from there. In fact, I believe that Singapore’s Muslim population of 700,000 is a good core to start on.
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So with all the advantages that Singapore has to offer, how can we catapult ourselves to success? What is our story that we can share with the rest of the world, when it comes to Islamic Finance? 🙂
Stay tune on my blog, to discover more. Insya’Allah… 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
Yesterday, I went to Johor Bahru to watch a Malay movie, titled “Kapsul”.
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I was very excited to watch it simply because the movie features the special appearance of 2 individuals that I respected most in my life.
Firstly, my first internet marketing mentor, Dr Irfan Khairi.
(Dr Irfan Khairi and me 10 years ago)
I went to Dr Irfan’s “Jutawan Internet” seminar when I was still serving my national service, travelling all the way from Singapore to Kuala Lumpur by bus. He is the one, who gave me the inspiration to set up my blog, HelmiHakim.com when I first joined the finance industry.
Secondly, Tun Dr Mahathir, Malaysia’s former Prime Minister.
(Tun Dr Mahathir and me 5 years ago at an Islamic Finance seminar in Singapore)
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Tun Dr Mahathir inspired me with his authentic, robust and no nonsense style of leadership. .
He is a firm advocate of “berani kerana benar” (fearless due to truthfulness) principle and is a visionary leader.
I am also impressed with his sheer determination and commitment to uplift the economic standard of the Malay community, at large, even at his old age of 90 now.
When I studied for my finance degree years back, I had some difficulties to understand certain financial jargons and how the economy works.
I referred to a lot of Dr Mahathir’s brilliant speeches on the world economic crisis. Dr Mahathir’s ability to simplify complex subject matter, compound with his excellent communication skills, his honest, yet unorthodox, mind blogging interpretation of the finance world impressed me, a lot. A respectable leader, one its kind.
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So when the movie is out, I jump at the opportunity to watch it.
The movie itself presents an excellent and creative way to look back at history, the struggle of the Malays since pre-independence.
In the movie, a high tech security expert Zohri Ibrahim makes a bet with a few friends to steal a time capsule planted by Tun Mahathir which contains his vision for year 2020.
Once the capsule is activated, Zohri is taken on a journey through time where he learns about the struggles of the generation before him.
It shows how helpless our forefathers were during the Japanese Occupation, during the reigns of power of the communist, and fighting for independence from the British.
I was emotionally touched to see the pain, the struggle, the sacrifices of our forefathers, and a sense of gratitude overwhelmed me, appreciating how lucky we are today, living in a country where we can call it, our own. Never to be subdued, subjugate by foreign invaders.
The part that touch me the most is when Zohri comes back to the real world, and meet Tun Dr Mahathir in real person.
Tun Dr Mahathir gently touch Zohri’s shoulder and said, “Ingat orang muda. Perjuangan kita belum selesai…..”
In English translation, it translates as, “Remember young man… Our fight has not ended”.
I can feel the hairs on my body standing. A gush of emotions overwhelmed me. I can relate to this, because I see myself working hard everyday, finding methods, strategies on how to uplift the economic standards of my community through financial planning.
It is an uphill battle that I am fighting day and night. It a very tiring, yet rewarding experience.
Tun Mahathir’s words of wisdom transcend beyond countries, and is an excellent advice to many youngsters to appreciate what we have today, yet continue to work hard, upgrade ourselves and strive forward for the betterment of our community.
It personally evokes and injects motivation within me. Congratulations to the producers for the movie well done! Considering the steep budget allocated to this movie, it will be a special and memorable memento and a reminder for our future generation to come. Amin… Insya’Allah…. 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
Occasionally, I received whatsapp messages, from prospects who get to know me online, asking me for instant financial advice over the phone.
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“Which investment plan can give me the highest Returns On Investment in Singapore?
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Now, my investment make money. Should I buy more, sell or hold on to my position?
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Is insurance halal or haram for Singaporean Muslims?
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I have medical complications. Diabetes, heart problem, cancer. Any insurance that can cover me?
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I just started working. What plans should I take now?
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I am going to retire. My money not enough. What should I do?.
I want to go Haj. Can you help me take my money out of my CPF? If cannot, how can you help me?
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Now Singapore government introduce Medishield Life. Should I terminate my existing private hospital insurance plan? Why???? Why not???
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I am a government civil servant. If I go hospital, government cover me fully right? How to know and confirm?”
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A lot of questions. Most of the time, I decline to answer them immediately and ask them to arrange for an appointment with me at my office in Woodlands Civic Centre.
This is because, I believe every individual is different when it comes to financial planning. Some of you are single, young and adventurous.
Some of you are sole breadwinners supporting your wife and kids. Some of you have been working for the past 30 years and are looking forward to your retirement.
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I use this special formula when helping my clients to plan their finances. It is called FLAIR. 🙂
FLAIR – the acronym for Financial Objectives Liquidity Affordability Investment time horizon Risk profile
These are the few, simple, yet very important steps that I followed diligently when helping my clients plan their personal finances. Only after applying the proper process to gather these pertinent data, I will be able to formulate, develop and propose the most appropriate financial instrument to my clients.
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Financial Objectives To Be Established
I simply ask them, “Thanks for meeting me. What do you want to plan specifically today?”
Some people will like to plan for their child’s education. Some will like to plan to save up for their retirement.
Some will like to save up for emergencies, to improve their living standards or perhaps save up to accumulate, grow their wealth.
What is your financial objective? 🙂
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Liquidity
I ensure that my client has sufficient liquidity that he can call on in an emergency (minimally 6 times of monthly expenses).
This is important, because in the event he fall sick and in need of money, he will not be forced to liquidate his insurance or investment plans at a loss. Most insurance or investment life plans require a long time commitment. If you liquidate the plans early, you might lose money.
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Affordability
I draft for my clients their cashflow statement. After determining that they have a positive cashflow, I ask for their budget.
Through this process, I ensure that my client will not be over committing in the premium that he/she has to pay for the financial instruments that I recommend.
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Investment time horizon
If my clients want to plan for their retirement, I ask the, how long more are you going to work before you retire?
If my clients want to save for child’s education, I will ask for their child age, and the university, they will like their child to enrol in?
If my clients want to invest and accumulate their wealth, I will ask, how much time they can wait before realising their profit?
In short, what is your investment time horizon? Planning strategic financial objectives for an investment time horizon of 5 years is totally different than planning for long term financial objectives for 15 years or more.
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Risk Profile
I ask my clients a few relevant questions to determine my client’s risk profile.
Are their risk profile, conservative, moderately conservative, aggressive, moderately aggressive?
This will ensure that my client will feel comfortable with the recommendation that I proposed.
If you need advice on financial planning in Singapore, do whatsapp me at 96520134 for an appointment. Every week, I meet 5-6 individuals just like yourself online, and I hope to share my financial planning expertise with more of you out there. See you around. Insya’Allah. 🙂
p.s. By the way, if you wish to discover a simple & halal way to create a positive monthly cashflow and calculate your net worth for FREE, then please click here…
A certified financial consultant, Helmi Hakim has won praise for his patience, perseverance and practicality when solving his clients’ financial concerns. For more information on how you can manage your finances better, contact Helmi Hakim at 96520134.
