View this email in your browser
Growth and outlook of Islamic finance and economy

In this issue, the newsletter highlights the growth and outlook of Islamic finance and economy, with special focus on Malaysia despite the pandemic situation. The State of the Global Islamic Economy Report 2020/21 (the Report) estimated that Muslims spending on Islamic economic sectors reached USD2.02 trillion and Islamic finance assets recorded at USD2.88 trillion in 2019. Global Muslim spending is forecasted to decrease by 8% in 2020 due to the pandemic.

The Report also highlighted that Malaysia leads the overall Global Islamic Economy Indicator (GIEI) rankings for the eighth consecutive year. This includes retaining its top position for Islamic finance sector alongside three other sectors. For more information on the global Islamic economy amidst Covid-19 and Malaysia’s rankings in the Report, download the infographic below.

The MIFC Team
Download infographic

Malaysia is set to reach its 40% Islamic financing target

Malaysia’s Islamic finance penetration rate has grown steadily over the years and looks on track to reach the central bank’s target of 40% share of total financing by the end of 2020, notwithstanding the unprecedented Covid-19 pandemic.
Read More

Islamic banking and capital market is expected to be stronger next year

The Economic Outlook 2021 report by the Ministry of Finance Malaysia accentuates that the ongoing promotion of Shariah-compliant products and digitalisation of services will provide the impetus for the country to position itself as a global hub for Islamic financial services.
Read More
Press Release

Malaysian takaful industry continue to grow despite challenging times

The Malaysian takaful industry continued its upward trend in enabling more Malaysians to obtain new Family Takaful protection with New Protection Value of RM364.2 billion in 2020 (as at end 30 Sept 2020).
Read More

Islamic banking has great potential in social financial instruments

Islamic banking has great potential to capitalise on Islamic social financial instruments such as zakat, waqf and alms which could be expanded to develop the underprivileged and communities affected by the economic uncertainty.
Read More

Malaysia as leading Islamic finance education centre

The newly launched Islamic Finance Knowledge Outlook Report 2020 by INCEIF and Refinitiv highlighted that Malaysia has the most developed Islamic finance ecosystem globally and is a leading centre for Islamic finance education.
Read More

Sukuk issuances will continue to grow in 2020

Sukuk issuances is expected to grow from USD162 billion in 2019 to USD174 billion in 2020 as a means for government to meet funding needs post Covid-19.
Read More
Press Release

SC introduces new framework to facilitate offering of Islamic funds with waqf features

The Securities Commission (SC) launched a new framework to facilitate the offering of Islamic funds with waqf features which is applicable to existing and newly launched unit trust and wholesale funds.
Read More

IIFM publishes Ijarah Sukuk Standards

The International Islamic Financial Market (IIFM) published its Sukuk Al Ijarah Standard Documentation Templates to provide a standardised set of documents addressing challenges related to sukuk issuance documentation.
Read More

Islamic finance to be the fulcrum of Labuan’s inclusive future

Labuan IBFC recognises the potential of the Islamic fintech landscape, with Islamic green financing being an important service to financial institutions. Islamic fintech is by nature financially inclusive, aims to promote economic well-being and creates socio-economic equitable distribution.
Read More
Islamic Finance Dashboard
Upcoming Webinars
Legal Documentation for Sukuk and Islamic Funds
Date: 9 & 10 December 2020 

IFN Green and Sustainable
Date: 14 & 15 December 2020 

Legal Documentation for Islamic Financing

Date: 16 & 17 December 2020 
Islamic Finance Library
Global News on Islamic Finance
  1. Bank of England set to open alternative liquidity facility to support UK Islamic banks
  2. Egypt's cabinet approves sukuk law, will send to parliament
  3. Bangladesh Government issues sukuk guidelines
  4. Turkey launches new participation bank infrastructure
  5. Central Bank of Kuwait approves formation of Shariah supervision body
  6. Bangko Sentral ng Pilipinas sets liquidity risk controls for Islamic banks
If you have enjoyed this issue of Epicentre or found it useful, feel free to forward it to a colleague or friend. If this newsletter was forwarded to you, and you would like to be added to the mailing list, subscribe here
Copyright © 2020 Bank Negara Malaysia. All rights reserved.
Please log on to for more information. 

DISCLAIMER: The copyright and any other rights in the selection, coordination, arrangement and enhancement of the information in this electronic newsletter are owned by Bank Negara Malaysia. No part of this electronic newsletter may be modified, reproduced or published without prior permission in writing from Bank Negara Malaysia and the relevant copyright owner. Although every effort has been made to ensure the timeliness, accuracy, adequacy and completeness of this electronic newsletter, Bank Negara Malaysia accepts no responsibility or liability for errors or omissions, if any. The information contained in this electronic newsletter is only up-to-date at the time of transmission, and is not exhaustive and may be updated from time to time on the website: Bank Negara Malaysia shall not be liable for loss or damage caused by viruses transmitted by this electronic newsletter. Bank Negara Malaysia is not responsible for any unauthorised changes made to the information in this electronic newsletter or for the effect of such changes. Bank Negara Malaysia appreciates any feedback or suggestions for improvement.