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Discover MIFC
The Islamic finance industry has now reached a stage of development in which it is no longer regarded as a niche product serving a specialised market. Today, it is a robust industry that operates in more than 60 countries, and it is a viable form of financial intermediation that is competitive and resilient.
The Islamic financial system in Malaysia has evolved as a competitive component of the overall financial system, complementing the conventional financial system as a driver of economic growth and development. The assets of Islamic banking and takaful which currently amount to RM135 billion and RM7.2 billion are among the largest in the world. These assets have been increasing at a double digit growth of 18% and 32% respectively in the recent five years. The Islamic sukuk market has now exceeded RM120 billion and represents the largest Islamic bond market in the world.
The main components of the Malaysian Islamic financial system - Islamic banking, takaful, money and capital markets - are highly integrated to create a comprehensive system and conducive marketplace.
14 August 2006 marked the launch of a nationwide initiative to promote Malaysia as an International Islamic Financial Centre - MIFC. The MIFC initiative is aimed at fortifying Malaysia’s position as a vibrant, innovative and competitive Islamic financial hub, with significant roles in:
- Facilitating relationships between the international Islamic financial markets; and
- Bridging and expanding investment and trade relations between the Middle Eastern, West Asian and North African regions with East Asia.
The Malaysian Government has streamlined its public service delivery channels to smoothen the advancement of the MIFC with the formation of the MIFC Executive Committee (Committee).
The Committee comprises a high-level group of 28 top officials from key Federal Ministries, Government Departments and Agencies, financial and market regulators and key representatives from the banking and takaful sectors. The Committee provides high-level policy direction while overseeing the review of existing policies towards ensuring the comprehensive and coordinated promotion of the MIFC. The MIFC Secretariat, formed by Bank Negara Malaysia, functions as the single contact point for the MIFC. |
