Since launching its inaugural Islamic Investment Banking Act in 1983, Malaysia’s government has taken every opportunity to further the development of its Islamic finance industry, issuing a range of regulations and development plans that have catapulted the market forward.

Two and a half decades on and Malaysia is home to 19 Islamic banks, which together account for around RM203bn (US$58bn) in Islamic assets. Malaysia is also the world’s largest issuer of Islamic bonds (Sukuk) and no less than 155 Islamic asset management funds are currently registered in the country, adding a further RM22.12bn to Malaysia’s Islamic coffers, according to figures from PricewaterhouseCoopers in Kuala Lumpur.

“The Malaysian government has made significant efforts to promote Malaysia as an epicentre for Islamic finance, putting in place a range of regulations to draw in international investors, issuers and funds,” says Vincent Chan, senior partner at law firm Abdullah Chan Law in Kuala Lumpur. “Malaysia is the only country in the world with a stock exchange that offers Shari’ahcompliant products, with Shari’ah compliant counters traded on Bursa Malaysia making up 85% of the total listed companies.”...

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