Why does the government believe Malaysia is well placed to become a regional hub for Islamic markets?
Malaysia has been one of the pioneers in Islamic capital markets-related research and development, and in market and product innovation. The range of Islamic products and services that are available for both local and international investors, including the offshore products offered in Labuan, is testimony to Malaysia’s leading edge in this area. The Islamic market can also draw on Malaysia’s existing capital markets infrastructure and framework, and also on the country’s Islamic banking industry and its Islamic insurance industry (takaful). With the expected increase in the number of Islamic financial institutions, such as Islamic banks and takaful operators in Malaysia, demand for competitive Islamic products and services is likely to increase. How beneficial is existing legislation to the promotion of these new markets? To a large extent, the existing scheme of securities regulation (which aims to provide investor protection, ensure markets are fair, efficient and transparent, and re
