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Malaysia captures 60pc of global sukuk market

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LOCAL EXPERTISE: Islamic banking assets also grew to 24pc of total market share

KUALA LUMPUR:  MALAYSIA continues to be one of the world's leading Islamic financial markets, with  sukuk of more than US$148 billion (RM474 billion) as of June, or 60.4 per cent of the global amount.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said the amount reflected Malaysia's rapid growth in sukuk, compared with US$1.5 billion in 2001.

"Being a conducive environment for sukuk transactions, I believe that Malaysia has what it takes to attract more institutions from all over aiming to tap Malaysia's Islamic finance marketplace and the pool of liquidity," he said when opening the 10th Kuala Lumpur Islamic Finance Forum (KLIFF 2013) here.

He said, according to Bank Negara, Islamic banking assets also grew to RM527.2 bilion, or 24.1 per cent of the banking system's total assets, in the first six months of this year. This was double the 12.1 per cent share recorded in 2006.

Muhyiddin credited Bank Negara Malaysia, the Securities Commission of Malaysia, syariah scholars and the Islamic financial industry community for bringing Malaysia's Islamic finance marketplace to the current level of sophistication.

He said the continued growth of the Islamic financial sector was dependent on three key areas: expertise, syariah governance and practices, and the legal and regulatory framework.

He said institutions, such as the International Centre for Islamic Finance Education and the International Syariah Research Academy for Islamic Finance, needed to be further empowered for world-class graduates and research in Islamic finance to be done.

"More internationally recognised syariah research needs to be published."

A legal framework, such as the new Islamic Financial Services Act, were also useful, he said.

KLIFF 2013, which closes on Friday, will feature critical discussions on strengthening the Islamic funds and investments industry.

Tan Sri Muhyiddin Yassin receiving a gift of books on Islamic finance fromCIMB Islamic chief executive officer Badlisyah Abdul Ghani (left) after opening the 10th Kuala Lumpur Islamic Finance Forum in Kuala Lumpur yesterday. At right is CERT Event chief executive officer Abdul Aziz Abd Jalal. Pic by Khairull Azry Bidin


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