Paklah stakes his Islamic credentials (Editorial)

Malaysia's new prime minister Datuk Seri Abdullah Ahmad Badawi ('Paklah') has taken steps to advance and more rapidly liberalize Malaysia's Islamic banking sector. Prime Minister Badawi plans to use Malaysia's chairmanship of the Organization of Islamic Conference (OIC) states to further promote cooperation and arbitrate disputes between its member states. Tan Sri Nor Mohammed Yakcop, appointed Second Finance Minster by the Prime Minister, has pushed for the use of the Islamic gold dinar (IGD) as an effective means of exchange in trade between Muslim countries. Badawi's experience in Islamic banking includes the development of a more cost-effective trade settlement policy known as Bilateral Payments Arrangement (BPA), one of which being a shari`a-compliant arrangement entered into with Iran. The BPA scheme serves as the foundation for the development of IGD Exchange between Muslim countries. As Kuala Lumpur becomes more innovative in the banking sector other Islamic financial centers,