Sunday, October 09, 2011

MALAYSIA - BANKING - Islamic banks urged to boost short-term syariah-compliant products Read more: Islamic banks urged to boost short-term syariah-compliant products

KUALA LUMPUR: Islamic banks in the country Malaysia have been urged to introduce more short-term syariah-compliant products to attract foreign investors.
 
We always have investors in Malaysia looking for syariah-shariah compliant products and sometimes, from the risk management perspective, because of due to the risk management perspective, they are constrained in putting their investment into investing in Islamic assets. that they have.

Hence, they will go abroad and invest in syariah-compliant products overseas,” said Amanie Islamic Finance Consultancy and Education LLC managing director, Dr Mohd Daud Bakar. (source)


Local institutions, he said, must make products that take ing into account the excess money in the financial system, so the the money will be retained in the country.

"Liquidity is not a problem in Malaysia because we have many products that can absorb the liquidity in the Islamic financial intuitions. Investors in Malaysia are continuously looking for

syariah-shariah compliant products,” here,” he said on the sidelines of the Kuala Lumpur Islamic Finance Forum 2011 (KLIFF 2011), here, yesterday.

When asked on the effective role that can be undertaken by International Islamic Liquidity Management Corp (IILM), he suggested that it for IILM to offered multi-currencies products, which are is more cost effective and beneficial to other countries.

IILM, which is expected to be in operation this year, is a collaborative effort by 11 central banks or monetary agencies and two multilateral organisations to assist institutions offering Islamic financial services address in addressing their liquidity management issues.

The IILM will issue short-term papers in international reserve currencies, such as the US dollar and the euro.

Meanwhile, in his speech, Deputy Finance Minister Datuk Dr Awang Adek Hussin said in the midst of a gloomy economic outlook and the lacklustre performance by international banks, Islamic banks are still reporting positive growth.

"The industry must not miss the tremendous opportunity to establish a leadership role in the global financial landscape or to even realise its full potential within its primary Muslim markets," he said.

Global Islamic finance assets are projected to grow to US$1.6 trillion (RM5.13 billion) next year.

The Islamic finance industry has had a compound annual growth rate of 19 per cent from 2006 to 2010 and there are more than 10,000 publicly traded syariah-shariah compliant companies in more than over 40 countries.

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