Tuesday July 8, 2008
Islamic finance industry rising at 20% a year in Malaysia
By MEERA VIJAYAN
JOHOR BARU: The Islamic finance system has evolved in the country over the past two decades, making Malaysia the world's largest Islamic bond market today.
Johor Mentri Besar Datuk Abdul Ghani Othman said the bonds, which accounted for 60% of outstanding global Islamic bonds, were worth US$100bil (RM328bil).
He said, from a single Islamic bank set up in 1983, the country now had an Islamic finance industry growing at 20% a year with Islamic banking assets making up 12.2% of total assets.
“Sharia-compliant financial products and services are no longer for a specialised market. In Malaysia, Islamic banking is mainstream business,” he said in his speech at the opening of Kuwait Finance House’s (KFH) first branch outside the Klang Valley.
Expansion: Abdul Ghani (left) accompanied by Salman (centre) touring the Kuwait Finance House branch in Taman Molek, Johor Baru, recently. Abdul Ghani said that, locally, the Islamic finance system had evolved to be a competitive component in the overall financial system, complementing conventional financial systems as a driver of economic growth and development.
Welcoming the opening of the new branch in Taman Molek, he said that KFH was a leading company from Gulf Cooperative Council countries to enter Malaysia in a significant way.
“KFH is a major investor in Iskandar Malaysia. It has invested US$330mil (RM1.2bil) in a project which is the single-largest foreign real estate development in Malaysia,” he said, adding that much could be learnt from KFH’s success.
KFH (Malaysia) Berhad managing director Datuk K. Salman Younis said the company would now be able to expand its reach in market sectors outside the Klang Valley, especially in southern Malaysia.
“We have been successful in the Klang Valley and hope to replicate the success in Johor,” he said in his speech.
He said that KFH’s presence here was to support all businesses in general, but specifically for its retail and corporate customers in the state.
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