Islamic Capital Market In Malaysia

Islamic as result of the commitment and close collaboration between regulators and the islamic finance community the islamic capital market icm is a significant pillar of malaysia s well developed islamic finance industry and is widely recognised as the leading centre for innovation in shariah compliant products and services.

Islamic capital market in malaysia. Malaysian islamic capital market background the evolution of islamic finance began with the setting up of the pilgrims fund board savings mechanism under which funds for performing the hajj were set aside to cover the costs of performing the annual pilgrimage government and regulatory bodies recognized the need to develop islamic finance in order to create a financial niche for. The islamic finance industry in malaysia is characterised by having comprehensive market components ranging from islamic banking takaful islamic money market and islamic capital market. A leader in the islamic capital market malaysia has been able to diversify its market based funding avenues by developing its islamic capital market icm particularly the sukuk segment. The icm functions as a parallel market to the conventional capital market and plays a complementary role to the islamic banking system in broadening and deepening the islamic financial markets in malaysia.

Capital markets and services act 2007. Statistics gathered from bursa malaysia on the islamic capital market. The icm is a component of the overall capital market in malaysia. The country s icm expanded from rm294 billion in 2000 to rm2 035 trillion as at december 2019.

The evolution of the islamic capital market in malaysia. Malaysia is one of the key intermediary destinations along this new silk road that offers a platform for the origination distribution and trading of islamic capital market and treasury. Islamic market to promote malaysia as the international hub of islamic finance bursa malaysia has established an islamic markets team dedicated to the development of shariah compliant capital markets products and trading platform. It plays an important role in generating economic growth for the country.

According to ram ratings malaysia was the top sukuk issuer with us 13 9 bil ringgit equivalent or 35 1 of the us 39 5 bil ringgit equivalent sukuk issued in the first quarter ended march 31 2019.