Malaysian Islamic finance sector gains global ground
Malaysia’s Islamic finance services sector now boasts of the world’s largest sukuk market.
It also has the second-largest takaful market and a major Islamic banking and securities industry.
Malaysia had also established itself as an intellectual capital in IFS globally, with many research and
training initiatives in syariah law as well as finance that were unmatched elsewhere, Oxford Business Group (OBG) stated in its report recently.
The expectation in the sector was that growth was set to continue, with Malaysian IFS also taking an increasingly large part in international business.
While globally known for its sukuk market, Islamic capital markets contain much more besides, making them some of the most developed in the world, OBG pointed out.
“With a strong level of government support and a range of well managed and capitalised companies in banking, takeful and the Islamic capital market, Malaysia is set to take the leap envisaged by the second financial stability board and the Capital Market Master Plan 2,” OBG stated.
“This involves the further internationalisation of the sector, with the critical mass already achieved likely to see Malaysian IFS outfits become much more of a global presence,” it added.
“Underpinning this will be success in determining accept ble sharia-compliance rules, primarily between Malaysia and the Gulf countries, its closest rivals for the international IFS crown,” it concluded.