The Securities Commission Malaysia (SC) has launched a five-year Islamic Fund and Wealth Management Blueprint to drive further development and growth of the country’s Islamic capital market.
Taking into account global trends, including the rising affluence in the Asia Pacific and emerging Muslim economies, the Blueprint aims to leverage Malaysia’s well-developed Islamic capital market ecosystem to establish the country as a leading international centre for Islamic fund and wealth management.
The initiatives will, among others, strengthen linkages and connectivity, capitalise on global opportunities and increase the value add and talent base within the Islamic capital market to enhance products and services.
“The Blueprint represents Malaysia’s focused and concerted efforts in leveraging its well-established Islamic fund management industry to grow the wealth management segment.
“As part of the holistic development of Malaysia’s Islamic markets and consistent with the Capital Market Masterplan 2, the Blueprint will also drive greater the internationalisation of the Islamic fund and wealth management industry through enhanced cross-border capabilities and connectivity,” said Tan Sri Dato’ Seri Ranjit Ajit Singh, Chairman of the SC.
The Blueprint also aims to establish Malaysia as a regional centre for Shariah-compliant sustainable and responsible investment (SRI), leveraging Malaysia’s position as the largest SRI market in Asia.
To be implemented in a phases, initial programmes recommended by the Blueprint include the formulation of a framework for SRI funds, the setting-up of a global centre for Islamic capital market and the introduction of a digital investment services framework.
According to SC, there are 20 full-fledged Islamic fund managers in Malaysia, including large international firms. Combined with other fund-management companies operating Islamic windows, Malaysia has MYR132.4 billion (US$29.7 billion) worth of Islamic assets under management (AUM), which is among the largest in the world.
Malaysia is also a primary market place for global sukuk issuance, commanding 54% of global sukuk outstanding.
MYR1 = US$0.22