Malaysia maintains position as global leader in Islamic finance

KUALA LUMPUR: Malaysia has maintained its position as the global leader in Islamic finance with a diverse set of industry players which include legal, accounting, technology and rating companies, as well as commodity trading platforms, according to Deputy Finance Minister Datuk Amiruddin Hamzah.
In his speech during the Global Islamic Finance Forum 2018 today, he said Malaysia continues to be the main driver for sukuk market, representing 51% of the US$396 billion (RM1.63 trillion) of total global outstanding sukuk last year. To date, he said Malaysian corporates have issued RM3.7 billion green sukuk.
“We continue to lead in the Islamic wealth management industry with US$28.3 billion (36.5% global share) as at end-2017 as a key domicile for Islamic funds worldwide.
“I believe that the industry’s move towards embracing VBI (value-based intermediation) will further strengthen Malaysia’s leadership position, and advance the growth of Islamic finance towards generating positive, sustainable impact to the economy, community and environment,” he added.
Meanwhile, Amiruddin said the country’s economy remains fundamentally strong and resilient in the face of numerous global events that pose downside risks to global economic growth, supported by sound domestic demand as well as sustained global growth and trade.
“Malaysia has strong economic fundamentals, good governance and fiscal responsibility. We are determined to put in all of the necessary measures to ensure that corruption and abuse of power is eradicated from our administrative system.
“We are confident that our concerted efforts on reforms will exert a positive influence on the economy, and will be appreciated by local and foreign investors. This will ultimately enhance the investment landscape in the long run,” he noted.
Amiruddin said he believes the country’s growth would be sustained, supported mainly by private sector activity, adding positive labour market conditions and capacity expansion will also continue to support robust private consumption and investment respectively.
Additionally, he said that private sector spending, which is expected to benefit from continued positive spillovers from external demand, and household spending, bolstered by favourable labour market conditions and additional spending from the tax holiday will also support the country’s growth momentum.
During the first half of 2018, the country’s real gross domestic product (GDP) recorded a growth rate of 4.9%, with services sector accounting for 55% of the GDP growth.