Malaysia Islamic Capital Mart To Be Driven By Internalisation, Says SC

KUALA LUMPUR, Jan 17 (Bernama) -- The growth of Malaysia's Islamic capital market will be driven by greater internationalisation and a distinctive value proposition of the products, says the Securities Commission Malaysia. Chairman Zarinah Anwar said the expansion in the number of markets and industry participants embracing Islamic finance stimulate greater cross-border activities. Speaking at the establishment of CIMB-Principal Islamic's International Funds in Ireland here Monday, she said Islamic finance must also offer a distinctive value proposition incorporating universal values that appeal to a wider cross section of issuers and investors. She said the availability of risk-sharing instruments, fairness and collaboration can not only broaden the customer base to investors seeking risk-participatory products but also offer product diversification. "The true spirit of risk-sharing engenders entrepreneurship that is supported by strong risk management, which in turn will contribute to real value and wealth creation," Zarinah said. As the Islamic fund management industry moves towards greater internationalisation, she said there is a pressing need to address cross-border issues including the regulatory framework for funds approval, distribution and supervision. "In this regard, cross-border collaboration among regulators is an important aspect of the industry's development. "Such a regulatory arrangement is critical in ensuring appropriate investor protection and effective oversight of related intermediaries and their cross-border activities," Zarinah said. The size of Malaysia's Islamic capital market is projected to grow at an average 10.6 per cent per annum over the Capital Market Masterplan period of 10 years, to reach RM2.9 trillion in 2020. (US$1=RM3.14) -- BERNAMA