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Setting parameters.



E PP 10 has been formulated with the aim of increasing Malaysia's share of global Islamic banking assets to 13 per cent in 2020 from eight per cent now. The latest Economic Transformation Programme (ETP) Annual Report 2011 released by the Performance Management and Delivery Unit (PEMANDU) also highlights plans for the Islamic Omnibus Act which encompasses licensing framework, supervisory powers, prudential requirements, intervention and resolution of financial institutions, and a Law Harmonisation Committee that will focus on reviewing relevant court rules to suit Islamic finance practices.

Under Malaysia's Economic Transformation Programme, Entry-Point Project 10 (EPP (1) (Enhanced Parallel Port) See IEEE 1284.

(2) (Ethernet Packet Processor) A chip from Kalpana, Inc., Santa Clara, CA that doubles speed of Ethernet transmission to 20Mbits/sec. In 1994, Kalpana was acquired by Cisco.
 10) the Government in Kuala Lumpur will issue Shari'ah parameters on Mudharabah, Musharakah, Ijarah and Istisna this year.

Malaysia's share of global Takaful  | Takaful is an Islamic insurance concept which is grounded in Islamic muamalat (banking transactions), observing the rules and regulations of Islamic law.  contributions is targeted to rise from 11 per cent in 2009 to 20 per cent in 2020 and at least one Islamic financial institution is targeted to be among the global top ten by asset size by 2020.

The EPP is expected to create incremental gross national income of MYR MYR

In currencies, this is the abbreviation for the Malaysian Ringgit.

Notes:
The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 7.2 billion ($2.35 billion) and 12,000 jobs mainly in Islamic banking activities and Takaful by 2020.

The Performance Management & Delivery Unit (PEMANDU) was formally established on September 16, 2009 and is a unit under the Prime Minister's Department. PEMANDU's main role and objective is to oversee implementation and assess progress of the Economic Transformation Programme and the Government Transformation Programme. The Economic Transformation Programme is a focused initiative with the aim of transforming Malaysia into a high-income nation by 2020. Under the ETP, within the Financial Services National Key Economic Area (NKEA NKEA No Known Environmental Allergy ), the Government's plan is to make Malaysia the 'indisputable global hub' for Islamic finance.

LOOKING BACK

The ETP Annual Report notes that, "Malaysia accounts for 64 per cent of global Sukuk as at end-2010 and Bursa Malaysia is also the leading exchange for listed Sukuk.

"In the fund management industry, Malaysia has the largest number of Islamic funds, with 163 Islamic unit trusts amounting to MYR 25.0 billion ($8.15 billion) in total net asset value (NAV See navigation system and navigation bar. ) as at September 2011.

"Overall, Malaysia operates the most comprehensive Islamic capital market as well as occupying the top three spots in Takaful and banking.

"Bloomberg has also launched a non-ringgit denominated Sukuk index which was developed in conjunction with Bank Negara. The Bloomberg Malaysian Foreign Currency Sukuk Index provides a global benchmark for the performance of Sukuk bonds and the ability to track movements of foreign currency issues. In addition, Bloomberg recently created another index with the Association of Islamic Banks in Malaysia Here is a full list of financial institutions in Malaysia. Central Bank
  • Bank Negara Malaysia (The central bank of Malaysia)
1 Universal Bank
  • CIMB Group (CIMB Bank + CIMB Investment Bank + CIMB Islamic Bank)
 (AIBIM), the Bloomberg-AIBIM-Bursa Malaysia Sovereign Syariah Index, which provides a performance benchmark for investors seeking exposure to Shari'ah- compliant ringgit-denominated Government securities.

"The Malaysian Government has successfully concluded the sale of Sukuk Wakala in two tranches totaling $2 billion (MYR 6.06 billion) which saw a surprisingly high subscription rate given uncertainties in the global credit markets and the gloomier global economic outlook. The Government's commitment to further encourage Sukuk issuances is evident from the wide range of tax incentives provided to issuers such as the introduction of tax deduction on expenses incurred for the Wakala structure for a period of three years commencing 2012, besides extending until 2014 the income tax exemptions for non-ringgit denominated Sukuk issuances.

The Islamic banking segment is expected to contribute MYR 11.1 billion ($3.6 bilion) in incremental gross national income (GNI) for 2020

"Beyond Sukuks, the year under review also saw the introduction of Bursa Suq suq  
n.
Variant of souk.
 Al-Sila' - a commodity trading platform specifically dedicated to facilitate Islamic liquidity management and financing by Islamic banks. Initiated as a national project, Bursa Suq Al-Sila' is the result of the collaboration of Bank Negara, SC, Bursa Malaysia and the industry players in support of the Malaysia International Islamic Financial Centre (MIFC MIFC Malaysia International Islamic Financial Centre
MIFC Malaysia International Fireworks Competition
MIFC Minnesota Interagency Fire Center
MIFC Maritime Intelligence Fusion Center
MIFC Mumbai International Financial Centre (India) 
) initiative. The fully electronic web-based platform provides industry players with an avenue to undertake multi-commodity and multi-currency trades from all around the world. This pioneering effort cements Malaysia's strength in both Islamic finance and the crude palm oil industry.

"Bursa Suq Al-Sila' is a world's first for Malaysia that integrates the global Islamic financial and capital markets with the commodity market. Currently, Bursa Suq Al-Sila' is operating a six-day market (except Saturday), with 40 members (29 locals and 11 foreign).

"In addressing the lack of short- term liquid instruments for institutions offering Islamic financial services and the absence of robust liquidity management infrastructure on the international front, the International Islamic Liquidity Management Corporation (IILM IILM Institute for Integrated Learning in Management (India) ) was established. The IILM has officially started its operations on 1 January 2011. Currently, membership of the IILM consists of 15 founding shareholders (consisting of thirteen central banks or monetary authorities of Indonesia, Iran, Kuwait, Luxembourg, Malaysia, Mauritius, Nigeria, Qatar, Saudi Arabia, Sudan, Turkey, the United Arab Emirates United Arab Emirates, federation of sheikhdoms (2005 est. pop. 2,563,000), c.30,000 sq mi (77,700 sq km), SE Arabia, on the Persian Gulf and the Gulf of Oman. , and Nigeria) and two multi-lateral institutions (the Islamic Development Bank Islamic Development Bank (also known as IDB), is a multilateral development financing institution. located in Jeddah, Saudi Arabia. It was founded by the first conference of Finance Ministers of the Organization of the Islamic Conference (OIC), convened 18 December 1973.  and the Islamic Corporation for the Development of the Private Sector).

"Towards spearheading Malaysia's drive to become a centre of excellence for Islamic finance, research, development and education, the Kuala Lumpur Regional Centre of Arbitration (KLRCA KLRCA Kuala Lumpur Regional Centre for Arbitration, Malaysia ) is making robust efforts to expand its role in promoting Islamic arbitration globally. It will launch Islamic arbitration rules to encompass other sectors such as construction and maritime (beyond its current Syariah principles-based business transactions). These new rules are expected to be launched next year and marketed globally, making KLRCA the first arbitration institution in the world to have a new set of rules. Currently, the centre has over 600 local and international arbitrators with various expertise and qualifications, and managed over 70 cases last year.

MOVING FORWARD

"In 2012, we are targeting the issuance of syariah parameters on Mudharabah, Musharakah, Ijarah and Istisna. Review of the feedback from industry players on the parameters is ongoing. Bank Negara is working to strengthen legal support to Islamic financial transactions. The Islamic Omnibus Act encompassing licensing framework, supervisory powers, prudential requirements, intervention and resolution of financial institutions is currently in the stage of finalising regulatory laws for Islamic finance services.

"In addition to this, the Law Harmonisation Committee will focus on reviewing relevant court rules (for example, to recognise the treatment with regard to imposition of interest from the Shari'ah finance perspective) to suit Islamic finance practices in order to create a more conducive legal system that facilitates and supports the development of Islamic finance institutions.

ISLAMIC BANKING

"The Islamic banking segment is expected to contribute MYR 11.1 billion ($3.6 bilion) in incremental gross national income (GNI) for 2020. This will be supported by strong growth of 15 per cent per annum from 2010 to 2015, slowing down to 12 per cent over 2016 to 2020. Most of the GNI value is expected to be derived from baseline growth, with additional contribution from several business opportunities:

Ou Islamic pawnbroking pawnbroking

Business of advancing loans to customers who have pledged household goods or personal belongings as security. The pawnbroker's trade is one of the oldest known, having existed 2,000–3,000 years ago in China, as well as in ancient Greece and Rome.
 (Ar-Rahnu); and

OuMigration of money lending business to conventional or Islamic banks following the proposed amendment to tighten the money lending business.

INSURANCE & TAKAFUL

"This segment is expected to create incremental GNI of MYR 13.1 billion ($4.27 billion) GNI in 2020. Industry growth for conventional insurance and reinsurance The contract made between an insurance company and a third party to protect the insurance company from losses. The contract provides for the third party to pay for the loss sustained by the insurance company when the company makes a payment on the original contract.  is expected to remain stable at six per cent, whereas Takaful and ReTakaful will register stronger growth at 20 per cent over 2010 to 2014, slowing down to 15 per cent over 2015 to 2020. Most of the GNI value is expected to be derived from baseline growth, with additional contributions from several business opportunities:

Ou Greater insurance take-up arising from Government's efforts to educate the public on financial planning and the importance of protection

Ou Expected further consolidation and rationalisation will create strong institutions and platform for growth

Ou Micro insurance will become more viable with cheaper distribution models

In the fund management industry, Malaysia has the largest number of Islamic funds, with 163 Islamic unit trusts amounting to MYR 25.0 billion ($8.15 billion)

ASSET & WEALTH MANAGEMENT

"Malaysia aims to carve out to make or get by cutting, or as if by cutting; to cut out.
- Shak.

See also: Carve
 a niche in Islamic asset management. The asset management and wealth management

(AMWM AMWM Angry Militant White Male ) segment is estimated to contribute MYR 1.9 billion ($620 million) in incremental GNI in 2020. This will be driven by an average eight per cent growth over 2010 to 2020. Whilst most of the GNI value is expected to be derived from baseline growth, several opportunities within the segment will be expected to give rise to GNI:

Ou Increase in access to funding for innovative start-ups arising from creation of a MYR 500 million ($163 million) fund

Ou Mudharabah Innovation Fund under the Tenth Malaysian Plan

Ou Outsourcing opportunities arising from the creation of the MYR 20 billion ($6.5 billion) public-private partnership fund to support the Tenth Malaysian Plan

Ou Growing Malaysian wealth will require asset management and wealth management services

Ou Increase in demand for unit trusts, mutual funds and wealth management services among foreign workers and returning Malaysians

Ou Growing awareness and critical mass for retail aggregators who can negotiate lower fees for unit trust products, e.g. FundSupermart."

2012 CPI Financial. All rights reserved.

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Publication:Islamic Business & Finance
Geographic Code:9MALA
Date:May 17, 2012
Words:1503
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