Islamic fund, wealth management plan unveiled

KUALA LUMPUR: Securities Commission Malaysia (SC) yesterday launched a five-year Islamic Fund and Wealth Management blueprint that will kick off with the formulation of a framework for syariah-compliant sustainable and responsible investment (SRI) funds, the setting up of a global centre for Islamic capital market and introduction of a digital investment services framework.

The blueprint, drawn up with the objective of developing and growing Malaysia’s Islamic capital market, details initiatives to broaden linkages and connectivity, capitalise on global opportunities and increase the value add and talent base within the Islamic capital market to enhance its product and service offerings.

SC chairman Tan Sri Ranjit Ajit Singh said in a statement yesterday, Malaysia is well-placed to seize the growth potential of the Islamic fund and wealth management market, with the blueprint representing a focused and concerted effort on leveraging on its well-established Islamic fund management industry to grow the wealth management segment.

He said the blueprint will also drive greater internationalisation of the Islamic fund and wealth management industry through enhanced cross-border capabilities and connectivity.

It also aims to establish Malaysia as a regional centre for syariah-compliant SRI, leveraging on Malaysia’s position as the largest SRI market in Asia.

Malaysia is widely recognised as the world leader in Islamic capital market with a market size of RM1.7 trillion, which has more than tripled over the last decade.

As the only country in the world with a framework for Islamic fund management companies, Malaysia now houses 20 full-fledged Islamic fund managers including large international firms.

Combined with other fund management companies operating Islamic windows, Malaysia has RM132.4 billion worth of Islamic assets under management, which is among the largest in the world. Malaysia is also a primary marketplace for global sukuk issuance, commanding 54% of global sukuk outstanding.