Bank Islam targets RM1b collection through Sadaqa House

by SHAFIQQUL ALIFF / pic source:

BANK Islam Malaysia Bhd launched its new fund “From Cradle to Graduation” through its public funding platform Sadaqa House aimed at benefiting orphans nationwide.

It is aimed to ensure that orphans from infancy to adolescence will be able to further their education up to the degree level.

Bank Islam Group chief financial inclusion officer Mohd Nazri Chik said the new fund aims to raise RM1 billion under the permanent fund and aims to channel RM3 million every month by 2040 to the education and welfare of orphans in Malaysia through return-on-investment permanent funds.

“The amount of the fund will be invested into appropriate financial instruments and able to generate income at least at a rate of 3% per year.

“As much as 20% of each contribution received before 2040 will be channelled to joint initiatives with implementing partners, while 80% will be put directly into the permanent fund to generate sustainable revenue,” he said after the launch of the Sadaqa House orphan fund.

To date, the total funds accumulated is RM1.1 million.

Mohd Nazri added that the launch is in line with Bank Islam’s five-year business strategy (LEAP25) which aims to strengthen the Social Finance agenda and position Bank Islam as the leading social finance bank in Malaysia.

“We are committed to mobilising sustenance sharing efforts with various target groups to ensure comprehensive financial inclusion.

“As the beginning of the commitment to this effort, Bank Islam also channelled a total of RM761,000 for agendas agreed with the three implementing partners of Sadaqa House, namely OrphanCare Foundation, Pertubuhan Kebajikan Anak Yatim Malaysia and Youth Empowerment Foundation,” he said.

Mohd Nazri further added Sadaqa House has channelled a total of RM2.8million to 292 micro-businesses through Micro BangKIT as of April 30, 2022, where the recipients received capital in terms of financial and knowledge.