LARIBA

In the name of God most gracious, most merciful and the mercy giver – Bismilahi Arrahmani Arrahim –

And may God’s peace be showered onto all his prophets including prophets Moses, Jesus and the last of all prophets, Muhammad (Salla Allahu Alayhi wa Sallam).

Your Excellency Mr. PM Dr. Mahathir Bin Mohammad, the respected and distinguished Mrs. Prime Minister, our distinguished guests, our dear brothers and sisters in Islam.

We are gathering tonight to honor a distinguished man who comes from a distinguished country and on behalf of all of us, I would like to thank you for joining us tonight.

AMERICAN FINANCE HOUSE LARIBA

· What is Islamic Financing?

Islamic Financing in today’s banking lingo is Socially Responsible Asset Based Financing that believes in Community Development, Community Reinvestment, Micro-lending, Equal Lending Opportunity to all regardless of their ethnic background, skin color, gender or national origin. It prohibits speculation and gambling with people’s assets and trusts. It is in fact morally and ethically responsible banking & financing.

AFHL is an independent finance company established in California in 1987 to offer financing in accordance with Islamic Jurisprudence (“LARIBA”) methods to the community at large, Muslims and non-Muslims, in America. We have served people of all faiths. It was formed by a group of highly accomplished American Muslim businessmen/and women.
Our Capital and investment resources are all from our community. We rely on our community resources.
The company has a book authored by myself entitled LARIBA Bank. The book was published twice. Total distribution so far is over 7,000 copies.
Our company is now serving 13 states – Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, Texas and Virginia.
The company offers financing of Single Family Homes, Small Businesses, Fast Food Franchises (KFC, Churchi’s & Baskin Robins), Medical Clinics, Dental Clinics, Gs Stations, Car Washing Facilities and trade financing.
We have been profitable & distributed competitive dividends and profits since we started. This is because we firmly believe in THE KNOW YOUR CLIENT RULE. We know each and every one of our clients.
LARIBA.com is the only company in the USA of this type. Alhamdulellah, American Finance House LARIBA has become one of the most recognized name brands in Islamic Banking & Financing both in the USA and abroad.
The Los Angeles Times (1.4 million in circulation) covered company operations in a front-page article. Other newspapers that presented lengthy articles about LARIBA.com were The Houston Chronicle, The Dallas Morning News, The Chicago Tribune and The Detroit Free Press. In addition, AFHL was shown on ABC Nightly News worldwide with Peter Jennings on August 18, 1999. Furthermore, The National Public Radio at University of Illinois, Champaign/Urbana, had a one-hour talk show with me and it was extremely well received by those American non-Muslims who called in. We thank Allah because all these recognitions were not solicited by us.
We were invited to present papers at the Annual Islamic Banking and Finance Symposium held at Harvard University in 1998, 1999 and this year.
LARIBA.com has become a true “dot-com” company receiving most of its applications for financing and inquiries through the Internet. We have become a true source of Islamic Banking & Finance in America.
LARIBA.com does not advertise its activities. All our clients come to us as a result of referrals throughout the USA or visiting our web site.
Our Vision: We have ambitious long-term plans to develop a network of banks in America that offer a LARIBA window. We also spire to offer our services next to every community center, church, temple and masjid. A number of significant steps have been taken towards achieving that goal.
Every year AFH-LRIBA Board of Directors nominates a significant achiever in the field of LARIBA – Islamic Banking. The name of his Excellency PM Mahathir Mohammad came up. The Board thought that in light of the significant achievements of the Prime Minister, his vision, his creative and bold strategies used in building modern Malaysia and his courage during the Asian Currencies’ melt down – A Life Time Achievement Award is the least we can do in recognition of his achievements.
We have prepared a short video about HE PM and we want to share it with you this short video that introduces HE the PM and his family.

THE MALAYSIAN MONETARY CRISIS IN 1997:

In July 1997 the Malaysian currency, the ringget, came under speculative attack along with the currencies of many of the Asian Tigers like Thailand and South Korea. The ringget was 2.5 Ringget to the dollar before the attack. It reached 4.8 Ringget to the dollar in April 1998. The KLSE was around 1000 before the attack of currency traders and it reached 280 in September 1998. The GDP was growing at around 8.5% per year for 10 years till 1996. It shrank to –7.2% in 1998.

The Ministry of Finance and the Central Bank, Bank Negara did not understand what was happening.

The surrounding countries poured most of their foreign currency reserves in the currency market to defend their currencies but they could not succeed. They went to the IMF for help with additional loans. The IMF conditions were very painful and not much different from the standard medicine given by the IMF.

Malaysia, under the leadership of Dr. Mahathir had two courses of action to choose from:

1. The IMF recommendation that were subscribed to by the Malaysian Ministry of Finance and the Malaysian Central Bank:

1.1. Raise interest rates.
1.2. Borrowers were forced to pay their debts faster despite the economic downturn.
1.3. Malaysian Government was required to reduce its support and subsidy of the economy.
1.4. Malaysian Banks were asked to make borrowing more difficult.
1.5. The Government & central bank were asked not interfere with the international free markets, especially the currency markets.

This was tried briefly but was proven to be a disaster for the Malaysian economy as it was for the surrounding countries. Businesses failed, construction activity, automobile sales and export/import financing – the backbone of the economy – all declined sharply. Real Estate, Businesses & Banking networks could be purchased for almost 20 to 30 cents on the dollar. Every one thought that Malaysia is ready to go to the IMF to borrow and capitulate to the IMF demands.

I was in Malaysia in 1998 visiting my friend Br. Nor Mohammad Yackop (who is a brilliant Malaysian monetarist.), I looked outside the window and told him: can you believe? They want you to sell all this at 20 cents on the dollar!

The PM came in the picture. And, I wish that a good public relations firm develops the story of what the PM and his team did so that the average layman in Malaysia and the developing world can understand the significance of what the PM and his new team did.

First he wanted, like any good doctor trying to help his/her patient recover, to understand what was going on, what was the ailment and how the system works? He assembled a fresh team of able advisors and together they dissected the situation. They understood how they could stop currency and stock market speculation. They followed a very bold course of action that was pioneering and exactly opposite to the advice given by the experts and the IMF.

They made borrowing easier

They gave more breathing space to those honest borrowers who could not pay their debts because of the crisis.

They stimulated the construction industry, automobile industry and export industry through easier terms for financing. People started buying again and the economy started buzzing.

They fixed the ringget at 3.8 R to the dollar, which was equivalent to 1:10 Thai & Filipino currencies. This helped make Malaysian exports less expensive and imports more expensive.

They stopped currency and stock market speculation by devising brilliant policies ONLY after he, the PM, understood how the system works.

The IMF and the G-7 countries were up in arms. They criticized the policy and predicted its failure.

The PM and his team put their trust in God and proceeded along a new monetary & economic policy that was never tried before.

Today, the Malaysian economy is back to normal without borrowing from the IMF and without losing its reserves.

The Ringget is still at 3.8R to the dollar and many think that it is undervalued.
Currency and stock market speculators quitted speculating against the R.
The KLSE index is now included back on the MSCI international indexes.
Foreign Direct Investment is back investing in Malaysia.
The KLSE reached around 800 from its low of 262.

The economy is back in action.

The new chief of the IMF not only congratulated Malaysia for the success of its bold policy but also is now implementing a similar approach. All distinguished universities in the world are teaching the Malaysian policy as a new case study for its students in monetary theory.

The word for Doctor in the tradition of Islam is HAKIM or Hacham in Hebrew – meaning the Wise person. HE PM Dr. Mahathir Mohammad is the wise HAKIM captain that was not afraid of saying I do not know what is going on and how the system works, was honest to say I want to learn, was wise to listen and to devise solutions and was bold in pioneering a new course of action and policy, was courageous to stand by himself against the world of the so called experts and was humble enough to get down in the trenches and apply the policies with a hands on approach along with his team of experts.

Your Excellency, ladies & gentlemen – the holy Quraan revealed by Allah God states in sura Al-Waqi’aa (chap. 56 verse 10, 11 and 12)

“Wasabiquoon Assabiqoon, Olaika Al-miuquarraboon, Fi Jannati Al-Naeem,”

“And the Pioneers, the pioneers, they are the ones that will be closest to God on the Day of Judgment enjoying the pleasure of paradise.”

On behalf of The Shareholders, The Board of Directors, The Staff and many professional Muslims in America, I pleased and honored to present you with the LARIBA Life Time Achievement Award. Please join me in congratulating HE the PM.