Register  
Malaysia pioneers Islamic Finance framework
Tuesday, 15 February 2011 12:15pm

Malaysia is stepping up its push to become a world centre of Islamic finance with the release of a Shari'ah Governance Framework for Islamic Financial institutions that will apply to Islamic organisations from June this year.

Development of the framework reflects concerns the trillion dollar Islamic investment sector, estimated to be equivalent to about 5 per cent of the worldwide investment industry, is stalling.

"This framework is a catalyst to bring about progress for the industry and to ensure that syriah institutions are being properly operated by all the parties," Dr Mohd Akram, executive director of the International Shari'ah Research Academy for Islamic Finance told the Malaysian Sinchew news service.

Dr Akram's comments coincide with hundreds of Muslims worldwide this week celebrating the prophet Mohamed's birthday, making it a public holiday in both Malaysia and Indonesia.

Malaysia's courting of the Islamic investment world follows the move last year of their $350 billion Malaysia bourse to partner with the Bahrain bourse in the offering of Islamic investment products.

At $7 billion the Bahrain bourse is a minnow but the strategic significance of the link shouldn't be underplayed particularly given the closer links being forged between ASEAN bourses to synchronise their trading platforms to facilitate cross-border share transactions.

Earlier this month, the Malaysian, Singaporean, Philippine and Thai securities exchanges announced plans to develop a common technology framework that is expected to go live by the end of this year.

A study released by consultant Ernst & Young in 2010 found that the Islamic funds industry may be stagnating because its institutions appear slow to add the sophistication cashed-up Islamic investors are able to get from traditional developed world financial powerhouses.

Raja Teh Maimunah, head of Islamic markets at Bursa Malaysia was reported last year saying this lack of diversification among products available from Islamic financial institutions was a major stumbling block holding back the industry.

Blogs
Follow the industry experts.
Christopher Page
Christopher Page
Managing Director

Breaking out from the FoFA catch-22
Ever since the first draft of the Future of Financial Advice (FoFA) legislation came out, the advice sector has been trapped in a very ...read more
 
Benjamin Ong
Benjamin Ong
Chief Economist

Reflation, rotation and the taper
'Tis being my final type (drivel, to some gentle readers) for the year, we'll take a look back at the 2013 that was to seek the lessons ... read more
 
Alex Dunnin
Alex Dunnin
Director of Research & Editorial Services

MySuper: our verdict is in
Has MySuper worked? Has it lowered fees, simplified superannuation products, lifted returns and made people better off? Yes, yes ... read more
News Search   
VideoBrought to you by
Introduction to Series #07
What are the key challenges advisers face when building retirement portfolios for clients? Watch Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management. Watch video
Colonial First State Multi-Asset Real Return Fund
Find out more about the investment philosophy and objective of the Colonial First State Multi-Asset Real Return Fund. Senior Portfolio Manager, Kej Somaia explains. Watch video
Managed Accounts Forum 2014 Highlights
Around 150 delegates attended Financial Standard's inaugural Best Practice Forum in Managed Accounts held in Sydney in August. Financial Standard also launched a new magazine: FS Managed ... Watch video
The New Neutral
At this year's PIMCO Secular Forum, the company's global executives set themselves the challenge of taking a three to five year view and anticipate where the market would be against what investors would ... Watch video
Why Multi-Asset Solutions?
Joe Fernandes, Head of Global Investment Solutions at Colonial First State Global Asset Management talks about the advantages of objective-based investing in the multi-asset space. Watch video
Get it
Daily
FREE to your inbox, get the Financial Standard Daily Email.
Get the Free
iPad app
Download the Financial Standard iPad app for FREE
Industry
Events
SEP
23
OCT
07
Major Market Players Symposium
14
Unlock the value of diversification with mFund
15
Investment Performance Measurement, Attribution & Risk Management
16
Unlock the value of diversification with mFund
20
Family Office Forum
News
Bites
Advertisement

$245 (inc GST) for 1 year
 
 
Copyright © 1992-2014 Rainmaker Group
All material on this site is subject to copyright. All rights reserved. No part of this material may be reproduced, translated, transmitted, framed or stored in a retrieval system for public or private use without the written permission of the publisher.
Link to something NWWkCoiM