Brunei Darussalam BIMP-EAGA Business Council fully support the move to build a Syariah Compliant Digital Economic Zone to fulfil BIMP-EAGA's initiative to drive innovation-based development and to facilitate and promote the development of Syariah Compliant digital economy.
On the 2nd August 2021, Chairman of the Brunei Darussalam BIMP-EAGA Business Council also being the BIMP-EAGA Business Council witnessed the signing of a Public and Private Partnerships (“PPP”) Agreement between IHTHS Corporation (“IHTHS “) and NASDAQ Listed Company Greenpro Capital Corp. (Nasdaq: GRNQ) (“GRNQ”)
IHTHS is a private sector driven pioneer that facilitates the fostering of global standard businesses through the different developmental phases by creating good business leaders, associating with the primary players in BIMP-EAGA, and enabled through the halal economy and shariah compliant ecosystem, in line with the BIMP-EAGA Vision 2025. IHTHS’ mission is to brand EAGA region as an International Halal Trade Hub on a Shariah Compliant Value Stream and Trade Services, and promoting the ASEAN Economic Community (AEC) to be developed as an industries and production base for the global Islamic market.
GRNQ was incorporated on July 19, 2013, in the state of Nevada, headquartered in Kuala Lumpur, Malaysia and on July 2018 listed on the NASDAQ Stock Exchange. GRNQ currently provides a wide range of business consulting and corporate advisory services including cross-border listing advisory services, tax planning, advisory and transaction services, record management services, and accounting outsourcing services. As part of the business consulting and corporate advisory business segment, GRNQ provides a business incubator for start-up and high growth companies during their critical growth period and focuses on investments in start-up and high growth potential companies. GRNQ focus is on companies located in South-East Asia and East Asia.
The zone, planned to be located in Brunei Darussalam and will utilize the layout policies and the current existing facilities for a start.
1.9 billion Muslims spend USD$2.02 trillion across 6 real-economy sectors of Islamic Finance, Halal Food, Media and Recreation, Modest Fashion, Travel, Pharmaceuticals and Cosmetics (The Global Islamic Economy Report, 2021). With the demand side drivers comprising of a large and fast-growing young Muslim population who are aligned with an Islamic value driven lifestyle and practises - the Islamic economy is still anchored in a principled Islamic way of life but has evolved into an economy that is enhanced with a contemporary digital savviness. This has given rise to a broader, universal appeal that has guided Muslim behaviour not only in consumption but the related business ecosystem as well.
Whilst COVID-19 has impacted the travel industry, the other industries has persevered. Amidst the pandemic, multiple signals of opportunities in Islamic finance, halal lifestyle and halal products are emerging. This includes banks’ digitization, tokenization of sukuks and a global shift in supply chain, with a food security focus and a more evolved use of the cloud.
With the outlook of limited travel remaining a mainstay, the new Syariah Compliant Digital Economic Zone is envisioned as an “Offshore” model that is enabled to provide online company registration and remote bank account opening with access to digital assets listing and digital assets exchange, with the appropriate governance and compliance updates, in order to allow companies to raise capital and conduct secondary trading. The Digital Economic Zone will also cater to a Reciprocal Recognition Arrangement in order to coordinate and unite the BIMP-EAGA regional members as well as extending the partnership to extra regional countries through the Digital Assets Broker Dealers and Agents Affiliation Programme.
The Digital Economic Zone comes after the decision announced by the Business Council in July 2021.
The new zone will "serve as a platform for high-quality commercial operators to co-participate in the development of the BIMP-EAGA region, and open up new horizons for Digital era’s Environmental, Social, Governance and enable high speed economic growth," the Chairman said. “The total phase one investment in the Digital Economic Zone is estimated to be in the region of 150 to 200 USD Million and GRNQ will be responsible to organize both the CAPEX funding and working capital funding.”
Dr. CK Lee, Chief Executive Officer of GRNQ, shared his thoughts on the new Digital Economic Zone "The pandemic has hit overseas travel very badly. However, the demand for e-commerce sales of Syariah Compliant related products never stops. The new Digital Economic Zone can provide a comprehensive platform to meet users with all the Syariah Compliant demands. We will work closely with IHTHS and Brunei Darussalam BIMP-EAGA Business Council to develop a new ecosystem that is innovative making for a very exciting development, while still honouring the cultural and economic character of Brunei Darussalam.”