Malaysia Retains Top Position In Islamic Capital Market

KUALA LUMPUR, April 16 (Bernama) -- Malaysia, being world’s top Sukuk insurer and prominent centre for Islamic funds, continues to maintain its leadership in the Islamic capital market (ICM). Securities Commission Malaysia (SC) said in 2019, ICM represented majority of Malaysia’s capital market at 63.57 per cent and a market size of RM2.04 trillion as at December 2019, a growth of 8.23 per cent from the previous year. Malaysia issued RM102.39 billion worth of Sukuk, constituting 77.09 per cent of total corporate issuances, while Islamic asset under management (AUM) stood at RM180.52 billion last year, making up 21.93 per cent of the fund management industry. In addition, Shariah-compliant securities comprised 64.06 per cent of total equity market capitalisation valued at RM1.1 trillion, the SC said in its 2019 Annual Report released today. “The Islamic fund management industry also witnessed new and innovative investment product offerings. “These include Islamic Exchange Traded Fund (ETF) based on gold, SRI Islamic funds, as well as social and green Sukuk,” it said, adding that there were now 23 full-fledged Islamic fund management companies in the country as of December 2019. To facilitate the development of a Waqf concept linked to the capital market, the SC has explored leveraging investment products such as collective investment schemes (CIS), where returns generated would be channelled into Waqf projects or initiatives. Taking into account the results of extensive consultations with the industry, the SC is developing a waqf fund structure for the reference of fund managers interested in issuing such product. The SC has also licensed Wahed Technologies as Malaysia’s first Islamic digital investment manager (DIM) on Aug 9, 2019, as recommended by the Islamic Fund and Wealth Management Blueprint (IFWMB) to facilitate new Islamic digital business models, products and services in the country. This provides investors with access to a diversified Shariah-compliant portfolio in an efficient and transparent manner, and facilitates connectivity with international markets through its parent company, Wahed Invest, which has presence in more than 130 countries. The five-year IFWMB was introduced in 2017 to chart the strategic direction for Malaysia’s Islamic fund and wealth management industry. -- BERNAMA