Malaysia launches five-year Islamic Fund & Wealth Management blueprint

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(L to R) Muhammad Bin Ibrahim, Governor BNM; Ranjit Ajit Singh, Chairman of SC, Johari Abdul Ghani, Minister of Finance II, Senator Dato’ Lee Chee Leong, Deputy Minister of Finance II, Zainal Izlan Zainal Abidin, Managing Director, Development & Islamic Markets, SC.
(L to R) Muhammad Bin Ibrahim, Governor BNM; Ranjit Ajit Singh, Chairman of SC, Johari Abdul Ghani, Minister of Finance II, Senator Dato’ Lee Chee Leong, Deputy Minister of Finance II, Zainal Izlan Zainal Abidin, Managing Director, Development & Islamic Markets, SC.

Malaysia has launched a five-year Islamic Fund and Wealth Management Blueprint in a bid to position itself as global hub for Islamic funds, taking advantage of the rising affluence in Asia-Pacific and emerging Muslim economies.

Malaysia currently has Islamic assets under management at $29.66 billion (MYR132.4 billion) which is among the largest in the world. The blueprint will spring Malaysia as an international provider of Islamic wealth management services.

The 51-page blueprint was launched by the Second Finance Minister Datuk Johari Abdul Ghani at the International Fund Forum 2017 organised by Securities Commission on Thursday.

“The Islamic wealth management industry is still at a nascent stage of development as compared with other segments of the Islamic capital market,” the Securities Commission said.

Among the three areas that the blueprint will work are to strengthen Malaysia’s position as a global hub for Islamic funds, establish the country as a regional center for shariah-compliant sustainable and responsible investment, and develop it as an international provider of Islamic wealth management services.

“With its comprehensive Islamic finance ecosystem and track record in innovation, is at an advantageous position to play a lead role in shaping the concept and driving the development of Islamic wealth management services,” the blueprint said.

The blueprint will be operationalised through work programmes on a phased approach over a five year period. For the first phase, there will be formulation of a framework for issuance of SRI investment funds, the setting up of the global capacity building centre for Islamic Capital Market and the introduction of digital investment services framework.

The forum was attended by representatives from Hong Kong, Korea, Singapore and UK, collectively representing over $19 trillion, approximately 26 per cent of the total global assets under management.

The dialogue covered topics of domestic, regional and global relevance including investment viewpoints, market perspectives and opportunities in Malaysia’s economic and corporate landscape.

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