KUALA LUMPUR: Prime Minister Datuk Seri Najib Razak has urged all relevant stakeholders, both the public and private sectors, to actively participate and support the success of the Securities Commission's Islamic Wealth Fund and Wealth Management Blueprint (IFWM).
The first in the world, the IFWM addresses a myriad of issues inclusive of impediments to growth and innovation within the Islamic finance landscape, identifying potential opportunities for collaboration and partnership as well as accelerating the process of building scale.
“The launch of the Blueprint is very timely as it charts the path for Malaysia to become a leading international centre for Islamic Fund and Wealth Management by 2021,” he said in his speech, which was read out by Second Finance Minister, Datuk Sri Johari Abdul Ghani at the launch earlier today.
He noted that the Blueprint addresses three of the 10 Entry Point Projects (EPP) of the National Key Economic Area for Financial Services under the Economic Transformation Programme (ETP).
“The significant alignment with the three EPPs, which aim to spur the growth of the nascent wealth management industry; accelerate and sustain a significant asset management industry and become the indisputable global hub for Islamic finance reflects the strategic importance of the Blueprint," said Najib.
"To achieve this vision, I am sure there is a tremendous amount of work, coordination and commitment required to ensure that the Blueprint strategies are put into place effective and efficiently. I therefore urge all stakeholders, both public and private sectors alike to actively participate, support and collaborate in making this Blueprint a success."
The Blueprint touts 11 main criteria towards achieving the vision of establishing Malaysia as a leading international centre for Islamic fund and wealth management. The criteria are;
1. To provide enabling frameworks to support innovation in Islamic markets
2. To enhance market access and international connectivity
3. To develop a vibrant ecosystem to accelerate growth of Shariah-compliant sustainable and responsible investment
4. To promote the growth of private equity
5. To facilitate new digital business models, products and services for Islamic fund and wealth management
6. To advance Malaysia’s positioning as a hub for investment support service
7. To spur institutional participation in Islamic fund
8. To develop facilitative market infrastructure for Islamic wealth management
9. To strengthen intermediation capabilities to support greater internationalisation
10. To fortify talent pipeline for Islamic wealth management
11. To provide targeted incentives to strengthen international competitiveness.
One area of significant potential is the development of waqf, an Islamic philanthropic-based vehicle for social development, public good and wealth distribution.
According to the Securities Commission, there will be efforts to increase the level of sustainable waqf assets, through fund management or capital raising, in sectors such as healthcare, education and community development as waqf is set to become an integral component of the Islamic wealth management value chain.
Pioneering efforts have already begun with the Labuan International Waqf Foundation framework to support the distribution aspects of Islamic wealth management.
Ultimately, the Blueprint charts the medium and long term strategic direction for Malaysia’s Islamic fund and wealth management industry in order to create a conducive ecosystem that meets the growing needs of the global market.