The Melaka state government intends to develop the state as a hub for international Islamic banking in five to 10 years' time, said Chief Minister Datuk Seri Idris Haron.

He said the initiative is in line with the state government's efforts to develop a deep sea port focusing on trade, shipping and tourism.

"Islamic banking institutions will help boost businesses and trade in the region.

"When Melaka becomes a deep sea port, we expect over 500 vessels a year plying the Straits of Melaka and we will require efficient financial services.

"Islamic banking or Islamic financial management is suitable as it is interest-free and has been accepted by many countries, including non-Muslim ones," he told reporters after officiating the 4th ASEAN International Conference on Islamic Finance here today.

The three-day conference, organised by the International Islamic University Malaysia, features discussions on Islamic banking and finance as well as issues and challenges in the financial industry, and is a platform for participants from the ASEAN region to establish cooperation.

Meanwhile, Idris said the expertise and experience of Islamic economists in Islamic financial management is much needed for the country to continue and develop world-class financial institutions.

"The sharing of knowledge related to Islamic financial management system through such conferences today can be a springboard for all Islamic economists to exchange ideas and views to enhance its implementation in the country in the future," he added. - BERNAMA