KUALA LUMPUR (Oct 8): Tax incentives must focus on improving financial inclusion to uplift the financial capacity of the low- and middle-income groups, says the Chartered Institute of Islamic Finance Professionals (CIIF).

"This does not mean providing extra payouts and increasing lending but providing them with means and tools to bring them out of the low- and middle-income trap," said CIIF chief executive officer Dr Azura Othman.

"Financing based on partnership contracts are better suited for entrepreneurship compared with debt-based lending, where payments are required irrespective of economic outcome," she said in a statement today in conjunction with Budget 2020, which will be tabled this Friday.

Azura stressed on the need for continued investment to elevate the capabilities and skills of the current workforce, especially through professional qualifications and training programmes.

This, she said, will help boost the number of qualified professionals to enhance Malaysia's competitiveness in the globalised economy.

"We must develop home-grown talents to be ready to become Malaysia's future leaders and reduce the reliance on foreign expertise," she added.

Azura said the government should leverage on the principles of Islamic finance and its inbuilt values such as social justice and equity, trust and transparency, risk sharing, and financing grounded in the real economy, to achieve the Shared Prosperity Vision 2030 introduced recently.

"The Malaysian society is pluralistic — if not in terms of race, language, or ethnicity, then in terms of worldviews, and understanding of values and norms.

"There must be a spirit of 'we are all in it together' in order to maintain a coalition for action and improve solidarity for a brighter Malaysia," she said.