Ipmuda becomes Malaysia’s 1st Shariah-compliant building material trading house

IPMUDA Bhd has become Malaysia’s first fully Shariah-compliant building materials and solutions trading house following its implementation of Shariah-compliant procedures. The procedures aimed to promote socially responsible and ethical business practices through transparent contractual terms and obligations, eliminating hidden caveats or conditions, particularly in terms of fees or charges and any excess proceeds over and above the actual cost will be channelled to charitable organisations and causes benefitting the communities, particularly in areas relevant to the group such as providing green and stable electricity to remote areas via the installation of solar panels and micro-hydro turbines.

Despite that, the group said the Shariah-compliant procedures will improve collection turnaround days, thus safeguarding the group’s cash flow management and enable it to increase client retention, confidence and loyalty through the improved customer experience. CEO Jeffri M Yusup said the move complements Ipmuda’s aspiration to be a socially responsible organisation as the group is gearing up its environmental, social and governance initiatives across all its business segments. “Our renewable energy and healthcare divisions are, by its nature, inherently within the sustainability space, and now our trading division will join in the same journey towards building a more sustainable future,” he added.