KUALA LUMPUR: Islamic finance remains a top priority in the Financial Sector Blueprint to strengthen Malaysia's value proposition as an international gateway for Islamic finance.
Bank Negara Malaysia assistant governor Adnan Zaylani Mohamad Zahid said the outlook for the Malaysian Islamic financial market in the next five to 10 years is generally positive.
"This is pointing towards continued growth and development as well as Malaysia remaining as a major global Islamic financial centre," he said during his keynote address at the Standard Chartered Islamic Financial Markets Forum 2023.
Meanwhile, Adnan said that with the growing maturity of the Islamic financial sector in Malaysia, Bank Negara Malaysia also believes that the industry is now well positioned to drive the broader Malaysia as an Islamic Financial Centre (MIFC) agenda.
He said the MIFC Leadership Council, a joint initiative of Bank Negara Malaysia and the Securities Commission Malaysia, will provide thought leadership and drive strategy formulation and implementation to enhance Malaysia's position as an international gateway for Islamic finance.
"It is envisioned that the council will also evolve into a fully industry-led structure that will be better able to respond to and capitalise on global opportunities in Islamic finance.
"We are confident that with stronger industry stewardship, we will be able to foster greater market dynamism and growth," he said.
However, Adnan said the Islamic finance sector still has some way to reach its full potential based on these values to fulfil contemporary economic and social needs.
"Therefore, new initiatives are needed to empower and advance the Islamic finance system by emphasising the principle of driving growth, wider participation, and equitable wealth distribution, and not only focusing on company and conglomerate profits," he added.
Standard Chartered Saadiq recently held its inaugural Islamic Financial Markets Forum in conjunction with its 30th anniversary of Islamic banking.
Having hosted over a hundred participants from the financial services industry, the forum aimed to create a platform for key industry practitioners and regulators to share ideas and views to understand Islamic banking and finance better.
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