Clause 11

by deleting the full-stop at the end of sub-paragraph (q) of paragraph 1 and substituting a semi-colon, and by inserting immediately thereafter the following sub-paragraph:“(r)the provision of financing by a financial institution in connection with a qualifying Islamic financial arrangement in relation to non-residential property, for which the financial institution derives an effective return.”;

by inserting, immediately after the definition of “debt security” in paragraph 3, the following definition:“ “effective return” means —

in the case of a qualifying Islamic financial arrangement described in paragraphs (a), (b) and (c)(i) of the definition of that arrangement, the difference between the price of the non-residential property sold by the financial institution to the purchaser over the cost of the non-residential property bought by the financial institution; and (b)in the case of a qualifying Islamic financial arrangement described in paragraphs (a), (b) and (c)(ii) of the definition of that arrangement, the difference between the payments made by the purchaser over the cost of the non-residential property bought by the financial institution;”;

by inserting, immediately after the definition of “equity security” in paragraph 3, the following definition:“ “financial institution” means —

an institution licensed or approved by the Monetary Authority of Singapore, or exempted from such licensing or approval under any written law administered by the Monetary Authority of Singapore; and

any institution outside Singapore that is licensed or approved, or exempted from such licensing or approval, by its financial supervisory authority for the carrying on of financial activities;”; and

by inserting, immediately after the definition of “life insurance contract” in paragraph 3, the following definitions:“ “Monetary Authority of Singapore” means the Monetary Authority of Singapore established under section 3 of the Monetary Authority of Singapore Act (Cap. 186);“non-residential property” means any land, building, flat or tenement other than any land, building, flat or tenement described in paragraph 2(a), (b) and (c);“qualifying Islamic financial arrangement”, in relation to non-residential property, means an arrangement that is entered into between a financial institution and a purchaser —

which is endorsed by any Shari’ah council or body, or by any committee formed for the purpose of providing guidance on compliance with Shari’ah law; (b)which is provided by a financial institution that is permitted by the Monetary Authority of Singapore or any financial supervisory authority outside Singapore, as the case may be, to engage in the financial arrangement in question; and

whereby the financial institution purchases the non-residential property from the seller with a view to selling the same to the purchaser and —

the financial institution immediately sells the non-residential property to the purchaser (whether in consideration of a lump sum payment or instalment payments); or

the financial institution immediately leases the non-residential property to the purchaser with an option for the purchaser to purchase the same;”.