CMH is expected to unlock a vast potential of opportunities for the Islamic financial industry. It can provide a wider range of new instruments not only for liquidity management and risk management purposes but players can derive additional linkages by utilising CMH to facilitate issuance of sukuk and in the creation of financing and deposit products. Besides having the potential of providing wider product selections, CMH could create a more transparent and streamlined commodity transaction practices based on the concept of murabahah or tawarruq. Leveraging on the experience of Bursa Malaysia in the area of exchange traded products, CMH is able to eliminate uncertainty in the transactions and could mitigate risks such as legal risk, market risk and counter-party risk. We are most grateful to the CPO suppliers for participating in this initiative. For CMH to be successful, it requires the cooperation of the players in the CPO market. With greater involvement of players in the commodity industries, CMH would be able to unlock the potential of your business operation by enabling the stocks to be exploited for this exchanged traded mechanism. The success of the CMH depends on the continuous support of the CPO suppliers. The CMH could also explore the possibility of sourcing CPO supplies from abroad. This innovative effort which has been endorsed by the Shariah Advisory Council of Bank Negara Malaysia and the Securities Commission has the potential to appeal to a wider market audience in and outside of Malaysia.
Going forward the long term viability of BCH will depend on its ability to create a wide range of innovative product offerings that are endorsed by globally renowned Shariah scholars and on the continuous strong support from the key stakeholders. On that note, allow me to congratulate the parties involved in today's signing of Memorandum of Participation – the Commodity Murabahah House, participating Islamic banks and the CPO suppliers – for showing and giving your commitment to making the CMH a reality. Also I wish to take this opportunity to extend my deepest appreciation to the team at Bursa Malaysia, Bank Negara and SC who had conceptualised the idea and all other stakeholders who have worked hard to make this noble initiative come true, insyaAllah. 2  BIS Review 93/2009