e-Kencana set to extend access to Islamic Payment Switch to ASBISINDO member banks across Indonesia

Kuala Lumpur, 17 April 2008 – e-Kencana Sdn Bhd, a subsidiary company of Kencana Capital Sdn Bhd, today announced that it is set to extend access to the first global Islamic Payment Switch (IPS) to the Asosiasi Bank Syariah Indonesia (ASBISINDO) in the second half of 2008. The IPS will establish a global link for ASBISINDO’s member banks to other Islamic and all Organisation of Islamic Conference (OIC) member countries.

Islamic finance is one of the fastest growing financial segments in the world with a current value of more than one trillion US dollars and a projected annual growth rate of 20 percent[1]. “e-Kencana is proud to help consolidate Malaysia’s vision as an International Islamic financial hub. e-Kencana aims to leverage its first-mover advantage with the IPS and fully develop its potential to become the single switch that supports electronic banking and financial services for all Islamic banks throughout the world,” said Shahzad K. Sultan, Managing Director of e-Kencana Sdn Bhd.

“The collaboration with ASBISINDO is a huge win for Malaysia because it reinforces the faith that the Islamic banks of Indonesia have in our Islamic Payment Switch. This is especially significant in terms of its business potential because Indonesia is home to the world’s largest Muslim population,” added Shahzad.

ASBISINDO currently represents 3 full-fledged Commercial Islamic Banks, 26 Islamic Banking Windows and 117 Islamic Cooperative Banks. These member banks of ASBISINDO serve more than five million customers in total, across Indonesia. Access to the IPS will ensure that ASBISINDO member banks enjoy lower payment switching fees charged compared to amounts charged by other international payment switching systems. Other benefits of the IPS include single currency conversion, increase of deposit-taking for member banks and convenience for their customers. In line with Shariah-complaint principles, all these factors will stand to benefit the end-customer who travels or is engaged in any form of business with countries in the Middle-East, including those who are performing the “Hajj” or Umrah.

“ASBISINDO is looking forward to embark on this collaboration with e-Kencana and explore the full potential of how we can best leverage the IPS to provide innovative Shariah-compliant financial applications to our customers,” said Bapak Avantiono Hadhianto, Executive Member - Interconnection, Research & Development, ASBISINDO.

“e-Kencana hopes to leverage on the market potential of the local banking sector and extend the benefits of the IPS to other Islamic financial institutions based in Malaysia. Meanwhile, we will continue to explore the full potential of new opportunities and global linkages with other Islamic countries,” said Shahzad.

The IPS is an electronic payment infrastructure that offers an integrated, secure, cost-efficient and scalable solution that meets the growing potential of the Islamic financial sector. It supports the electronic banking and financial services of banks involved in Islamic banking and finance activities, both domestically and globally. The IPS enables all local and foreign participating Islamic banks to leverage the ATM and POS network to provide wider access and convenience to their cardholders.

AL Rajhi Bank Malaysia was the first bank in Malaysia to realise the full potential of the IPS offered by e-Kencana which resulted in the introduction of its award-winning AL Musafir Card-I to its customers in 2007.

[1] Source Bank Negara Malaysia