MALAYSIA - BANKING - Uncertainty, disparity in Islamic finance pose challenges

The uncertainty and disparity in some areas of Islamic finance can at times be an added cost for industry players or turn them away from it, said a senior Securities Commission (SC) director.

Zainal Izlan Zainal Abidin, the SC executive director, said the legal, regulatory and tax frameworks for Islamic finance sometimes differ from one market jurisdiction to another, and this poses a challenge when one goes into cross border situations. (source)

MALAYSIA - LEGAL - Uncertainty, disparity in Islamic finance pose challenges

KUALA LUMPUR: The uncertainty and disparity in some areas of Islamic finance can at times be an added cost for industry players or turn them away from it, said a senior Securities Commission (SC) director.

 

Zainal Izlan Zainal Abidin, the SC executive director, said the legal, regulatory and tax frameworks for Islamic finance sometimes differ from one market jurisdiction to another, and this poses a challenge when one goes into cross border situations.

"As a result, going through the Islamic finance route may, at times, be less clear or economical than the conventional route.

"Until these issues are satisfactorily addressed, there will be some degrees of apprehension among industry players and practitioners to fully embrace Islamic finance," he said. (source)