A Strategic Framework, CoE & call for Muslim sponsors to realise the world's first Islamic Social Stock Exchange (Updated)

1. DEVELOPINGASTRATEGIC
FRAMEWORK&COEFORWORLD’S1ST
ISLAMICSOCIALSTOCKEXCHANGE&
TO3RD WORLDCOUNTRIES
WITH
THE
LEADERSHIPOFSPONSOR(S)
BY:LTCDR JOHNNYMOI(Retd.)

2. BACKGROUND/INTRODUCTION
Social Stock Exchanges (SSEs):
￮ Trading platform listing “social development” businesses in
approved Main Stock Exchange
￮ Allows investors to buy shares of Companies in : Education, Food &
Agriculture, Energy, Water, Sanitation, Healthcare, Green Tech &
Environment orientated
￮ Key participants: Government, Financial Institutions, Community
Organizations, Social Development Agencies, Social Entrepreneurs,
Investors...
￮ Some SSEs (differ in form and function):
* UK: Social Stock Exchange (SSE)
* Canada: Social Venture Connexion (SVX)
* Singapore: Impact Exchange (IX) @ Mauritius Stock Exchange
* South Africa: South Africa Social Impact Exchange (SASIX)
* U.S. : Mission Markets (MM)
Islamic Social Stock Exchange (ISSE):
A Syariah compliant trading platform listing social development &
impact investing businesses in approved Main Stock Exchange.
* None in the world yet! SPONSOR to champion ISSE!!
2

3. ISLAM AND WEALTH
“Go you forth (whether
equipped) lightly or
heavily, and strive and
struggle with your
properties and your lives in
the cause of Allah, that is
best for you, if you knew.”
(Al-Tawbah 9 : 41)
3

4. Background # 2
ISSE – ISLAMIC STOCK
EXCHANGE OF THE FUTURE!
ISSE – THE FUTURE OF STOCK
EXCHANGE!
-Lt Cdr John Moi (Ret) -
4

5. Background#3
CURRENTPOSITION
New emerging concept with challenges:
￮ Accretion & accredition of key participants
￮ Social and / or spiritual mission of the
business
￮ Target beneficiaries
￮ How the business impact the companies
and stakeholders
￮ Metrics or measurement tools of social and /
or environmental impact
￮ Syariah compliance and limitations
5

6. Background#4
CURRENTPOSITION–KEYAREAS
OFRESEARCH
￮ Policy & regulation for a sustainable ISSE –
To develop
￮ Education, training & awareness activities
– To develop
￮ Research & Development activities – To
specify
￮ Metric tools or methodologies to
measure the impact – To determine and
develop
￮ Creating a sustainable framework for
localised / universal ISSE – To develop
6

7. Background#5
ASSUMPTIONS
￮ Will adopt & enhance existing policies & guidelines
in setting up as a stock exchange
￮ Encourage new and existing members to migrate
as founding members of ISSE
￮ Regulated by relevant authorities of Malaysia or
country-specific
￮ Initial funding by SPONSOR under its CSR or other
funding program by co-sponsors
￮ SPONSOR to spearhead the first Islamic Social Stock
Exchange Academy (Akamiyya) or Centre of
Excellence (CoE) to the world
￮ SPONSOR proposed to be the Leading Islamic Social
Enterprise Incubator & Accelerator (Balwara) in
related activities & development
7

8. ProjectObjective#.1
PROJECTOBJECTIVES
￮ To develop the first Islamic Social Stock
Exchange for Malaysia or Country
specific
￮ To enhance the positive image of
related government agencies and
social stakeholders of country specific
￮ To assist other 3rd World nations &
Muslim countries in developing similar
ISSEs leveraging on related Networks
￮ To be the pioneer CoE in Islamic Social
Stock Exchange education and
consultancy (Akamiyy) 8

9. ProjectObjective#.2
BRIEFDESCRIPTIONOF
STRATEGY
￮ The ISSE will be created with:
￮ Latest ICT technologies (Block chain
technology?)
￮ Competent people (guided by
Professional Team) / Social
Entrepreneurs / Government agencies
/ Muslim Scholars and Academia
￮ ISSE will bring together the
government, social business entities
and social investors and perhaps the
Muslim community at large! 9

10. KEY STRATEGIC THRUSTS:
 Strengthen “sponsor’s nation”
positioning as a global hub for
Islamic investments
 Establish “sponsor’s nation as a
leading center for Shariah
compliant sustainable and
responsible investment
 Develop or enhance “sponsor’s
nation” as an international provider
of Islamic wealth management
services
10

11. STRATEGICBLUEPRINT:
 Provide enabling frameworks to encourage innovation
in Islamic markets
 Enhance market access and international market
connectivity
 Develop a vibrant ecosystem to accelerate growth of
Shariah compliant sustainable and responsible
investment
 Promote the growth of private equity
 Facilitate new digital business models, products,
services for Islamic funds and wealth management
 Advance “sponsor’s nation” as a hub for investment
support services
 Encourage institutional participation in Islamic funds
 Develop facilitative market infrastructures for Islamic
wealth management
 Strengthen intermediation capabilities to support
widen internationalization
 Strengthen the talent pipeline for Islamic wealth
management
 Provide targeted incentives to strengthen international
competitiveness
11

12. ProjectObjective#.3
STRATEGY:SUPPORTING
PLATFORMS:
￮ Formation (Balwara) of ISSE – Framework & Guidelines
￮ ISSE Advisory Board (Sura) – Policies & Direction
￮ ISSE Partners Incorporated – Social Business Partnership / Alliance
(Shiraka)
￮ ISSE Bonds (Dimma) and Sukuks – Raising capital: bonds and funds
￮ ISSE Academy / CoE ( Akamiyy)– Promotion for the science and art
activities of Islamic Stock Exchange
￮ ISSE Institute (Hay’a) – Promotion of educational activities
￮ ISSE Advisory & Research (Dirasa) – Provision of advisory services,
identify investment opportunities, conduct due diligence and
manage transactional exchange
￮ ISSE Growth Fund (Numuin, Rifi) – Issuance of growth funds: matured
market using Islamic funds and principles?
￮ Accelerator Fund (Ajila) – To expedite growth of budding enterprises
using Islamic funds and principles?
￮ Accessment Advisory (Mihak) – To measure and monitor social-
environment impact? To include spiritual impact?
￮ ISSE Foundation (Insa) – Capital market enhancement activities that
scale up positive impact of the entity (SPONSOR)
12

13. Project #.4
RURALDEVELOPMENTBOND(Rifi)
(EXAMPLE)
￮ Mobilizing private capital for
development in rural areas
￮ Ecosystem of people and
organizations in rural areas designated
￮ Access to the financial markets
￮ Using Shariah compliant financial
instruments / facilities or dimma &
sukuk and others?
13

14. Project Objective#.5
DEVELOPMENTGROWTHFUND
(Numuin)(EXAMPLE)
￮ Accelerator program that assists
social enterprises matching capital to
different stages of growth
￮ Cover key areas: Water, Sanitation,
Energy, Food, Agriculture, Education,
Healthcare, Green Technology,
Environmental friendly…
14

15. ProjectObjective#.6
MARKETVALUECHAIN–UTILIZING
ISLAMICFINANCE&IMPACT
INVESTINGPRINCIPLES&ISLAMIC
FINANCIALINSTRUMENTS
Will include:
￮ Seed capital – Initial funding to begin
creating a new business or product
￮ Early stage capital – Financing
provided by VC / Sponsor after seed
capital
￮ Growth capital – Funding for growth or
expansion purposes; private equity
￮ Bridging capital – A form of debt equity
￮ Exits – Plan by owner / investors to exit
a financial asset position 15

16. ProjectObjective#. 7
IDEATOMATURITYSTAGES&
UTILIZINGISLAMICFINANCIAL
INSTRUMENTS
Will progress from:
￮ Idea stage – Early steps in an innovation
process until it becomes a business case
￮ Early stage – Financing provided by VC /
Sponsor to a Co. after seed capital
￮ Expansion stage – Financing provided by VC
/ Sponsor while products are commercially
available
￮ Pre-IPO stage – Placement of large block of
stock before listing
￮ Maturity stage – Longest period of Co. sales
before decline
￮ Exit stage – A business exit strategy for
owner to sell ownership to investors 16

17. ProjectObjective#.8
MARKETINGSTRATEGY&
TARGETMARKETS
￮ A Marketing Plan will be developed upon
approval that includes:
￮ Above & below the line marketing activities
￮ Supplemented by Social or Digital Media
￮ Target markets include Social Investors,
Govt related agencies, Financial Institutions,
Community organizations, Green
Development Agencies, Social
Entrepreneurs, Philanthropic Bodies, Muslim
(Zakat) & Sedaqah entities?
17

18. 18
ExpectedOutcome#.1
$200to650billionby2020(about1%globalassets)
Source: J. P. Morgan & Global Impact Investment Network
Shariah trading (global): USD 2.1 trillion (2017)
Source: Dr. Mohd Damak, Senior Director & Global Head of
Islamic Finance (S & P) Global Ratings
$8billion(2012)to$9billion(2013)

19. ExpectedOutcome#.2
POSITIONINGSTATEMENTS
￮ Malaysia: “Malaysia’s First Islamic
Social Stock Exchange”
￮ Rest of the World: “ISSE - Creating the
Stock Exchanges of the Future” (Under
the flagship of SPONSOR)
￮ “Stock Exchange of The Future!
￮ Catchword: Islamic Finance & Impact
Investing” Partnership (Shiraka)!
￮ SPONSOR: The Leading Evangelist of
Islamic Social Stock Exchange!
￮ SPONSOR: The Global Advocate of
Islamic Social Stock Exchange!
￮ COE to be named after SPONSOR (or
Entity) 19

20. ExpectedOutcome#.3
BRANDINGSTRATEGY
￮ Malaysia: “Malaysia’s No.1 “Islamic Social
Stock Exchange!”
￮ Rest of the world: “Country-specific Islamic
Social Stock Exchange”
￮ Tagline: Investing in People, Planet, Profits &
Preservation for the Future
￮ Will use both traditional and digital media to
create branding to public and world at large
￮ Syariah compliance Social Stock Exchange
￮ Islamic Finance & Impact Investing
Partnership (Shiraka)!
￮ SPONSOR: The Global Advocate of Islamic
Social Stock Exchange
￮ COE to be named after SPONSOR (or entity) 20

21. ExpectedOutcome#.4
PRODUCT/SERVICESTRATEGY
￮ Provides an investor-friendly & Shariah
trading platform listing social business
developed from Legal, Government, private
sector and related entities for all countries
particularly the Muslim community
￮ SPONSOR CO will provide assistance and
end-to-end consultancy services to
countries intending to start their Islamic
Social Stock Exchanges
￮ SPONSOR CO will be the Academy & Centre
of Excellence (CoE) on Islamic Social Stock
Exchange to the world
21

22. ExpectedOutcome#.5
PROMOTIONSTRATEGY
￮ Includes all activities in both traditional & digital
media to create awareness
￮ Printed & digital info about entity and services
￮ Alliances with other SSEs / World’s Social
Development bodies / UN agencies / Universities /
CSR bias entities / Social orientated foundations /
Impact Investing entities, Muslim business bodies
￮ Website, Blog & other Social Media platforms to be
employed to increase visibility
￮ Development & Implementation of ISSE Certification
programs & ISSE Summit or Conference, Gala Events
to be organised by SPONSOR
￮ COE to be named after SPONSOR (or entity)
￮ Formation of the world’s first ISSE Network Alliance?
22

23. Project&CommercializationPlan#.1
RESOURCESREQUIREMENTS
￮ Malaysia: ISSE will register with ROC as S/B &
regulated by existing authorities of the Main
Exchange of Malaysia (similar for world)
￮ Listing of ISSE in other bourses may be considered
using capital mechanism like Alibaba, Grab...
￮ Proposer will rent an interim office space with ICT
facilities to conduct research and develop
framework, SOPs of supporting platforms e.g.
Academy, Institute, Advisory Board....etc...
￮ SPONSOR may allocate working space in its
premises for coordination or other related activities
￮ Proposer will develop the business model and set
up for the self sustainable COE
￮ Note: SSE (UK) took 18 months from idea to pre-IPO
maturity stage & has raised about US$ 1,000,000
(Market Capitalisation: GBP 1.25 Billions)
23

24. Project&CommercializationPlan#.2
FINANCIALCONSIDERATIONSAND
COMMERCIALIZATIONPLAN
￮ Initial request of working grant / seed capital of RM
15,000 per month ( 1 year) to cover salary, living &
incidental expenses, visits to SSEs & key person(s)
funds to be requested, training programs (SSE &
Impact Investing, Islamic Finance, etc)...
￮ SPONSOR to consider fund-raising thru “Certified
Islamic Social Stock Exchange Professional / Islamic
Investment Professional and other related
certification programs” (To be determined)
￮ Fund –raising thru “World’s Summit /Conference and
Global Leadership Awards on ISSE Gala Event
hosted by SPONSOR (To be determined) (Separate
Event Organising proposals can be tabled)
￮ Donations and sponsorships during initial stage
￮ Self generating revenues from set up, consultancy
services, talks, training programs on ISSE
￮ ISSE Academy or CoE to be listed in less than 5 years
(Note: SSE (UK) took 18 months from idea to pre-IPO
maturity stage and has raised about US$ 1,000,000
SSE Market Cap: GBP 1.25 Billions as of Nov 2019) 24

25. Project&CommercializationPlan#.3
PotentialCommercializationPlan
 Certified Islamic Social Stock Exchange
Professional (CISSEP) – 2 -3 day intensive program,
300 pax at USD 1,500 per pax = USD 45,000.00
 ISSE Inaugural Gala & Awards Night – 500 pax at
USD 100 per pax per table of 10 = USD 50,000.00
 Platinum (1 @USD10 K), Gold (2 @USD 5K each),
Silver (4 @USD 3K each) & Copper (8@ USD 1.5K
each) Sponsors’ tables: projected revenues
@100% take up rate = USD 44,000.00
 Corporate & CEOs’ write up on Inaugural ISSE
Handbook: Projected revenues of 30 X USD
5,000/Co = USD 150,000.00
 Project revenues from above= USD 289,000.00 X 4.0
(RM 1,156,000.00)
 Revenues from Consultancy and services
rendered by SPONSOR-ISSE Think tank (COE) –
From USD 1,000,000 onwards per country for ISSE
 Note: Proposal Papers for ISSE Inaugural Gala &
Awards Night are ready!
25

26. Financial Road Map
 Develop and implement Certified ISSE
programs offline & online
 Development of paid training programs,
workshops, seminars, talks
 End to end consultancy for start up clients
(OIC & 3rd world countries)
 Annual Event Organizer for Summit / Gala
Awards for country specific
 Paid advertorials on CEOs & Company for
Directory / Handbook
 Fund raising thru equity / crowd funding
 IPO listing within 5 years or earlier
26

27. KPIs
 Set up CoE and registered Co within 3
months
 Website, Blog & Social Media within 3
months
 Documentation & SOPs – Ongoing
 Development & implementation of
Certified Professional Programs within 6
months (4 programs from 2nd year
onwards)
 Launch of Inaugural / Annual / Summit
Awards Event within 1 year / Annually
 Expansion to 57 plus countries (OIC &
3rd world nations – Minimum 5 countries
from 2nd year onwards
 Pre IPO Offer & IPO Listing of CoE
within 5 years or earlier 27

28. 28
Financial Benefits to Sponsors /
Investors (where applicable)
 Targeted 20% ROI per year
 Proposed Dividend Policy (up to 50%
from profit years)
 Angel Tax Incentives
 VCC Incentives
 Operational HQ Incentives
 Labuan International Offshore facilities /
incentives
 Government grants & incentives
 Investment opportunities in overseas
markets via JV / VIP programs

29. CONCLUSION
￮ Recent emergence of SSEs that differ in form
and function with few examples
￮ None from the Islamic community?
￮ Necessitate extensive R & D activities,
development of strategic framework and
related documentation (SOPs)
￮ SPONSOR proposed to be the Global
Advocate of Islamic Social Stock Exchange
by Islamic Finance & Impact Investing
Concepts Partnership (Shiraka)
￮ SPONSOR proposed to spearhead the first
ISSE Academy / CoE (Akamiyy) for the world!
￮ SPONSOR proposed to be the leading
pioneer Incubator & Accelerator of ISSE
(Ajila)
￮ Approve the working grant / seed capital of
RM 15,000 / month / year for originator of
business case
29

30. MINORACCOMPLISHMENTS
 International & local award-winning writer (Commonwealth
Navies & Anugerah Usman Awang)
 Author: Servant Leadership 1.0 – Serve to Lead & Servant
Leadership 2.0 – Principles of SERVANTHOOD (with
precepts from major Holy Books) published in major dailies
and online portals
 Author: Islamic & Christian Financial Concepts, other Wealth
Management /Thematic Concepts according to the Holy
Books. Also ’12 Strategic Initiatives for the Palm Oil &
Timber Industries (2 Papers / proposals)’
 Chief Editor & Event Organizer, LEADERS publication
 Former Columnist with the New StraitsTimes –Property
Column with published articles on Wealth Creation,
Investment and Property in general
 Former HOD – Sales & Niche Publications (Halal, Oil & Gas,
Tourist, Agriculture publications & Internet Solutions.
Secured 10 Millions deal forTM Publications from Tourism
Ministry
 Certified Master Financial Planner (MFP), USA
 Certified Professional Landlord (CPL), USA
 Certified Islamic Estate Planner (IEP), Malaysia 30

31. ALLAH’S OFFER OF BENEVOLENCE
O you who believe! Shall I lead you to a
transaction (bargain) that will save you
from a grievous penalty?... that you
believe in Allah and His Apostle, and
that you strive (your utmost) in the
cause of Allah, with your property…
-Surah Al- Saff: 10 – 11
31

32. 32
Thanks…TheNextStep?
Any questions?
You can find me at: johnnymoi7@yahoo.com or 012 371 0788