Size Of Asset Management In Global Islamic Market Expected To Improve

KUALA LUMPUR, Sept 2 (Bernama) -- The size of asset management in the global Islamic market is expected to improve from the current four per cent due to the increasing number of high net-worth investors, says Bank of London and the Middle East plc (BLME) Chief Executive Officer, Humphrey Percy. He said there is a large opportunity for asset management to expand and urged global and local Islamic banking investors to tap into the market. "We think it is a very interesting opportunity for banks to explore the wealth management segment," he added. He told the media this on the sidelines of an exchange of a memorandum of understanding between the BLME and local Malaysian bank, Bank Muamalat Malaysia, here Tuesday. The United Kingdom-based bank is the first to sign a collaboration with a local bank to offer Shariah-compliant private banking services in Malaysia. The focus is on meeting the demand of the domestic and high net worth industry globally, through a wide range of Shariah-compliant wealth management products and services. Percy said the bank is delighted to partner Bank Muamalat and hoped to develop its private banking business further, while expanding the range of products and services. Bank Muamalat Chief Executive Officer Redza Shah Abdul Wahid said the collaboration is a start for the bank to work towards the research and development of a viable business model to offer private banking services in Malaysia, alongside focusing on offering products and solutions for domestic and cross- border clients. "Next year, we will develop working groups with BLME to review the basic structural requirements for the delivery of private banking services, identify synergies between both parties and prepare feasibility studies. "This dynamic collaboration is aimed at enhancing Islamic banking values through the development of a competitive Islamic private banking platform which will bridge the United Kingdom, the Middle East and Asian Islamic financial markets," he added. He said that the number of high net-worth investors in Malaysia will double to 60,000 in the next five years from the current 30,000. In April 2010, Bank Muamalat enhanced its retail consumer business portfolio to include wealth management products as well as services. The enhancement of the portfolio was aimed at providing wealth management solutions through Bank Muamalat's. -- BERNAMA