KUALA LUMPUR: Franklin Templeton Investments remains confident that Malaysia will continue to play a major role in islamic financing and the outlook looks encouraging.
Franklin Templeton southeast Asia regional head Adam Quaife, in a statement, said Shariah-compliant strategies continues to be attractive to investors.
“Globally, total investment in Franklin Templeton Shariah-compliant strategies grew 32 per cent last year to reach nearly US$2.4 billion at the end of 2017,” he said.
Franklin Templeton senior director and regional head for Central Eastern Europe, Middle East and Africa Sandeep Singh said the group’s involvement in Malaysia’s Shariah investment sector begun when Bank Negara conferred it islamic financing licences in 2010.
He noted the key to further expanding funds operating along Shariah compliant criteria is greater public awareness.
Adoption of artificial intelligence (AI), robo-advisers and digital currencies are being explored within the ongoing debate over Shariah compliant guidelines.
He said innovations in islamic financing such as the green sukuk allow investments to flow into sustainable development that is socially responsible and and eco-friendly.
“We will most certainly have better acceptance and take-up as the structure, return and risk profile are better explained, with time,” he told reporters at the Franklin Templeton Islamic Forum held here today.
Also present were Franklin Templeton GSC Asset Management Sdn Bhd chief executive officer Nor Hanifah Hashim, Franklin Real Assets Advisors Raymond Jacobs and Franklin Templeton Solutions vice president and director of systematic modeling Dr Chandra Seethamraju.