Islamic Industry Continues to Grow Essays

Islamic Industry Continues to Grow Essays

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The Islamic finance industry continues to grow following continued internationalisation efforts. Last year’s growth was an impressive 16.5%, accounting for 25.7% of total assets in the banking system. The foreign currency business also grew with assets amounting to RM 18.1 billion in 2013.
Meanwhile in the takaful sector, total assets of takaful funds grew by 10% to RM20.9 billion, while total takaful contributions accounted for 14% of total premiums in the industry. To increase the potential return to contributors, takaful operators were allowed to invest abroad any amount of investment-linked funds of resident clients. This is an increase from the previous limit of 50% of net asset value.
Bank Negara Malaysia gave the `Emas’ status to two sukuk issuances. They are the Islamic Development Bank and another corporation from Malaysia. Since its introduction in 2009, 11 sukuk issuances had received this status. This designation for foreign currency-denominated sukukreflects Malaysia’s evolution into the multi-currency sukuk issuances. Malaysia remains the global leader in the sukuk market with total sukuk issuance amounting to nearly USD 82.4 billion and accounting for 68.8% of global sukuk issuances.
With the vision of expanding Islamic finance, Bank NegaraMalaysia has made further improvement to the Shari’ah contract-based regulatory framework. The framework allows financial institutions greater opportunities to market a wider range of risk-sharing products and services. It allows a multitude of different contract-based standards to be addressed while at the same time achieving greater clarity in applying Shari’ah to Islamic financial products.
Further improvements were made during 2013. Global interlinkages in Islamic finance we...

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... land through recommended amendments to reserve land legislation in all states in Malaysia;
• To facilitate Islamic financing involving landed property through the recognition of Islamic finance in the National Land Code 1965; and
• To introduce and use Shari’ah-compliant product structures for the Islamic money market. This will be achieved by modifying the Companies Act 1965 to enable efficient murabahah transactions.

To make these recommendations happen, the Committee will work with the relevant Government ministries, departments and agencies. We are anticipating legal issues that may arise from the issuance of Shari’ah operational standards under the Islamic Financial Services Act 2013 (IFSA 2013). We will be reviewing the suitability of available means to resolve conflicts involving Islamic financial transactions with the view to improve cross-border disputes

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