Mapping Malaysia's Resource Centres

126 MAPPING MALAYSIA’S RESOURCE CENTRES Diagram 1: Effective Functioning of a Dual Financial System in Malaysia MALAYSIA INTERNATIONAL ISLAMIC FINANCIAL CENTRE (MIFC) Introduction Malaysia International Islamic Financial Centre (MIFC) is an aspiration founded in 2006 during the development of Malaysia’s Islamic finance market. Area of Expertise A unique proposition of the Malaysian Islamic finance landscape is the availability of a diverse set of industry players, which comprises: 1. Banking i. 16 Islamic Banks ii. 12 Islamic Windows iii. 6 Development Financial Institutions 2. Takaful (Islamic Insurance) i. 15 Takaful Operators ii. 4 Re-takaful Operators 3. Fund Managers i. 53 fund managers offering Shariah compliant funds 4. Professional Ancillary Services & Talent Entities i. More than 100 firms offering Islamic Finance Services in Shariah Advisory, Technology, Rating Services, Account & Audit, Legal, Human Capital Development and Commodity Trading Platforms. The financial institutions and professional ancillary services providers in Malaysia are instrumental in facilitating the growth of the industry beyond national borders. Human capital development is also a focal point in the industry. Various providers offer academic courses (public and private education institutions) and training certification programmes in Islamic finance. Strengths and Achievements Over the past 40 years, Malaysia has progressively developed a competitive and fully functioning dual financial system (Diagram 1). As such, the Islamic financial system has become an integral component of the overall financial system in Malaysia. As at end-2018, the Islamic banking industry commands 36.6% of total banking assets, while takaful industry stands at 16.3% of total net contribution (Diagram 2). In 2018, the volume of annual Islamic interbank transactions reached RM4.3 trillion. Islamic capital market represents 61% of Malaysia’s overall capital market. Globally, as at end-September 2019, the country continues to be at the forefront with 48.8% market share of total global sukuk outstanding and 33.8% of global Islamic assets under management. I S L A M I C F I N A N C E A N D A D V I S O R Y