KUALA LUMPUR, Malaysia is on track to become an international Islamic financial hub following significant strides made in promoting the financial segment, Deputy Finance Minister Datuk Ahmad Maslan said.
He said according to the Bank Negara Annual Report, Malaysia was ranked second after Saudi Arabia in Islamic banking with the total Islamic financial assets reaching RM599.5 billion, financing (RM408.1 billion) and deposits (RM472.1 billion).
“The Islamic banking has grown to between 25 and 28 per cent of the market compared with conventional banking,” he told a news conference at Parliament lobby here, Wednesday. Ahmad said Malaysia was also ranked second after Saudi Arabia in takaful (Islamic insurance), registering RM4.7 billion or 13 per cent of the insurance market in the country.
“In the global sukuk market or Islamic bond, Malaysia was ranked first with the United Arab Emirates trailing in the second place. “Malaysia has secured 58.7 per cent of the global sukuk worth RM537.2 billion. In other words, out of RM100 sukuk, RM58.70 was raised from Malaysia,” he said.
Ahmad said Malaysia also topped the Islamic funds market followed by Saudi Arabia, second and Indonesia, third. He said in the quest to cater to the needs of the Islamic banking and finance sector, the International Centre for Education in Islamic Finance (INCEIF) under the Ministry of Finance had produced 619 Islamic finance graduates since 2008.
Originally published on www.bernama.com.my