Since its inception over 30 years ago, Islamic financing has become diverse with a wide plethora of industry players from sectors such as legal, accounting, technology, commodity trading platforms and rating companies. Malaysia has spearheaded a number of innovations and inclusions in Islamic banking and finance to emerging as the global leader in this area.
Deputy Finance Minister Datuk Amiruddin Hamzah said, “The key driving force in leading Islamic wealth management is the vast experience of financial institutions and professional ancillary service.”
He further added, “This wide experience has helped facilitate the growth of Islamic finance industry beyond our nation’s border.”
Malaysia’s Islamic finance has thrived due to innovative initiatives.
The reason why it is such a thriving sector in Malaysia is due to high adherence to compliance and multitude initiatives such as issuance of the first-ever Sustainable and Responsible Investment Sukuk also called as SRI along with other initiatives such as Green Sukuk, Investment Account Platform (IAP) and development of the Waqf Fund for the development of Muslim economies.
Last year Bank Negara Malaysia has issued Value Based Intermediations (VBI) detailing various strategies to enhance the Islamic banks in order to create a sustainable financial environment. Economic analysts say that this will generate a positive impact to the economy, community and environment whilst maintaining its position as the global leader.
Malaysia’s economy stable amidst global economic slowdown.
Moreover, Malaysia’s economy has remained stable amidst global financial slumps and slow economic growth. Malaysia’s economy has been supported by sound domestic demand as well as a stable global growth and sustainable trade.
The Labour market has remained positive and robust expanse has been seen in the private sectors and consumption and investment. This has created a favourable growth momentum in Malaysia. This growth momentum will further be supported by regulated and diverse Islamic finance.
The future
Whilst Malaysia has successfully positioned itself as a leader in Islamic finance and banking, it still needs to reflect higher goals of the Islamic finance system of social justice and hence the journey is over. Malaysia has to now step up to work towards the higher goal.” says journalist Apnizan Abdullah.
However, Malaysia has played a pioneering role in the development of Islamic banks and its government is earnest in bolstering the requirement of Muslims in the country states the government.
