Malaysia as a Hub for Islamic Wealth Management
THE INTERNATIONAL FINANCIAL PLANNING
ADVISORS CONFERENCE 2008
Mohd Willieuddin Lim
Director, Global Markets
Sunway Pyramid Convention Center
22-24 February 2008
1
Contents
Section 1
History of Islamic Finance Industry
3
Section 2
The Shape of the Modern Industry
5
Section 3
Islamic Wealth Management
8
Section 4
Why Islamic Wealth Management
12
Section 5
Malaysia as a Hub
24
Section 6
Opportunities & Issues
33
Section 7
Conclusion
Important Notice
2
History of Islamic Finance Industry
3
Islamic Capital Market – A Tradition
The Islamic Financial Industry is……
•
•
•
•
•
A comprehensive financial system that adheres to Islamic principles;
It was the financial system of the known world developed under the reign of the Muawiyad
and the Abbasid Empires from the year 661 until the year 850;
It continued to be a vibrant and significant financial system of the known world
spearheaded by great Islamic empires in Andalusia (Spain) until the year 1031, in
Granada until the year 1492, in the Malaccan Sultanate (1511) and in the Ottoman
(Turkey) until the year 1918;
It is a system which has existed for the last 1,426 years. We are only relearning what is
available under the system in the last 40 years.
Broadly refers to financial market transactions, operations and services that comply with
Islamic rules, principles and codes of practices. The laws and rules of the religion require
certain types of activities, risks or rewards to be either prohibited or promoted.
4
Islamic Financial Market – The Evolution…
The evolution of Islamic Financial market is contributed by introduction of a
competitive and comprehensive product and service offerings.
2000’s
•Commercial
Banking
1970’s
•Commercial
Banking
1980’s
•Commercial
Banking
•Project Finance
Syndications
1990’s
•Commercial
Banking
•Project Finance
Syndications
•Equity and funds
2005+
•Commercial
Banking
•Project Finance
Syndications
•Equity and funds
•Ijarah
•Sukuk
•Project Finance
Syndications
•Ijarah
•Sukuk
•Structured
alternative assets
•Equity and funds
•Structured
alternative assets
•Liquidity
management tools
•Ijarah
5
Modern Day Industry Facts & Figures
• The world Muslim population today is estimated at about 1.8 billion, representing a
sizeable 28% of total world population of 6.6. billion.
• Islamic banking and finance has become a force to be reckoned with in the global
economic scenario. It often forms part of the equation in international finance, whether
on a government to government basis or at the private sector levels.
• The global Islamic banking sector is growing at an average of 15%-20% per annum.
• Currently, there are 300 Islamic financial institutions operating in about 100 countries
worldwide; with more than 300 Islamic equity funds managing assets in excess of
USD5 billion.
Source: Bursa Malaysia/LFX Islamic Capital / Market Report
6
Modern Day Industry Facts & Figures (continued)
• Total assets of the Islamic banking sector now stands at USD750 billion and will reach
USD1 trillion by 2010. (McKinsey)
• Size of Islamic mutual funds assets are estimated at USD800 billion. Where USD50-70
billion are in actively managed products. (Eurekahedge, Key Trends in Islamic Funds, 2006)
• Global sukuk market (USD plus RM issuance) is now over USD92 billion. USD
issuance of sukuk amounts to USD 22.85 billion as at end 2007.
• Global market capitalization of Dow Jones Islamic Index > USD10 trillion.
• Private capital investments, especially among Middle East’s high net worth individuals
whom are predominantly Muslim, is estimated to reach USD1.5 trillion and reaching
USD2 trillion by 2010.
• Islamic finance is recognized as having growth potential in established conventional
financial centers. The market is expected to grow to USD 3-4 trillion in the next 4-5
years.
Source: Malaysia International Islamic Financial Centre, October 2006 Report
7
The Shape of the Modern Industry
8
The Modern Islamic Financial Market
Industry must be comprehensive with all critical components established
Banking
Non-Financial
Institutions
Services
Wealth
Management
Money Market
Islamic
Financial
Market
Asset
Management
Capital Market
Debt and Equity
Takaful
Structured
Products and
Derivatives
9
Global Development of the Islamic Capital Market in the Last 30 Years
Evolution
1970s
1980s
1990s
2000s
•Gulf / Middle East
•Gulf / Middle East
•Asia Pacific
•Gulf / Middle East
•Asia Pacific
•Gulf / Middle East
•Asia Pacific
•Europe / Americas
•Global Offshore Market
Institutions
•Commercial Islamic
banks
•Commercial Islamic
banks
•Takaful
•Islamic investment
companies
•Commercial Islamic
banks
•Takaful
•Islamic investment
companies
•Asset management
companies
•Brokers/Dealers
•Commercial Islamic banks
•Takaful
•Islamic investment companies
•Asset management companies
•Brokers/dealers
•Islamic investment banks
•E-Commerce
Products
•Commercial banking
products
•Commercial banking
products
•Takaful products
•Commercial banking
products
•Takaful products
•Mutual funds/ unit
trust
•Domestic Islamic
bonds
•Shariah compliant
stocks
•Islamic stock broking
•Islamic derivatives
•Commercial banking products
•Takaful products
•Mutual funds/ unit trust
•Domestic Islamic bonds
•Global Islamic bonds
•Islamic asset backed securities
•Shariah compliant stocks
•Islamic stock broking
•Islamic derivatives
•Hedge funds
•Private Equity & Islamic REITs
Area
(Source: Report of the Islamic Capital Market Task Force of the International Organization of Securities Commission (“IOSCO”) and CIMB Islamic Analysis)
10
Strategic Landscape For International Growth
Geographical spread of countries that offer Islamic Banking and Takaful products and services
COMPREHEMSIVE ISLAMIC FINANCIAL MARKET - MONEY MARKET, DEBT & EQUITY CAPITAL MARKET, FUNDS, ETC
EUROPE
ISLAMIC BANK & TAKAFUL
ISLAMIC BANK ONLY
ASIA
TAKAFUL ONLY
LUXEMBOURG
KUWAIT
UK
PHILIPPINES
SWITZERLAND
BRUNEI
DENMARK
SINGAPORE
ALBANIA
MALAYSIA
GERMANY
INDONESIA
TURKEY
IRAN
RUSSIA
JORDAN
AFRICA
QATAR
TUNISIA
PAKISTAN
SENEGAL
BANGLADESH
SUDAN
SAUDI ARABIA
EGYPT
GHANA
UAE
NIGERIA
SOUTH AFRICA
BAHRAIN
ALGERIA
GAMBIA
AMERICAS
US
TRINIDAD & TOBAGO
SRILANKA
INDIA
OCEANIA
LEBANON
THAILAND
AUSTRALIA
OMAN
IRAQ
11
Islamic Wealth Management
12
What is Islamic Wealth Management ? – The WM Cycle
• Islamic Wealth Management is concerned with providing end-to-end solutions using products
and services throughout the wealth management cycle in compliance with Shariah. It’s a
Shariah-based service.
Wealth Creation
From business, savings in
bank, investment in first
property, etc.
Wealth Distribution
Passing on assets through
wills and trusts
Wealth Enhancement
Enhancing total returns
from capital gains and
income, including via use of
leverage
Wealth Protection
Capital preservations, risk
management, insurance, trusts
Source: CIMB PB
13
What does it take to have a good Islamic Wealth Management Hub
To become the focal point for Islamic Wealth Management an Islamic Finance
centre would
• Have developed to a level where demand for management of assets in
accordance to the rules of Shariah has grown beyond fulfilling basic
safekeeping to generating productive returns
• Have a track record of market leadership and product innovation
• Have a supportive regulatory and legal framework
How does Malaysia measure up against these criteria?
14
Diversified products and players
•
Industry players of reasonable size and economies of scale undertaking
multitude of Islamic financial activities.
•
Availability of products for multiple customer segments.
Diversified Players
Islamic Banks
Investment Banks
Takaful companies
Development Financial
Institutions
Fund Management companies
Stockbroking companies
Widest Product Range
In terms of products and
services, there are more than
100 Islamic financial
products and services
ranging from deposit,
financing, treasury/money
market investment, trade
financing, card services and
banking services offered by
the financial institutions
15
Proper and effective regulatory framework
•
Introduction and amendment of key legislation has been a key contributor
to development of Islamic banking and the sukuk.
•
Malaysia has the most comprehensive regulatory framework for Islamic
Finance and includes….
Key Governing Laws
“Accidental” Governing Laws





•
Banking Laws (eg. Islamic Banking Act
1983 (“IBA”))
Securities Laws (eg. Guidelines on the
Offering of Islamic Securities 2004
(“IS”))
Shariah requirements (incorporated in
IBA and IS) + Guidelines on Shariah
Committee Management

Land laws
Securities laws i.e. merger/takeover,
beneficial ownership
Lease laws (Ijara transaction)



Tax/Stamp duty legislation
Company law
Others
Shariah is regulated by the central bank. Industry as a whole is 100%
Shariah compliant not just on product basis.
16
Malaysia Has The Most Comprehensive Regulatory Framework for Islamic Finance
and includes the following…

Enactment of Islamic Banking Act 1983

Enactment of Government Investment Act 1983

Enactment of Takaful Act 1984

Amendments to Banking and Financial Institutions Act 1989

Enactment of Labuan Offshore Laws 1990

Guidelines on the Offering of Islamic Securities 2004

Guidelines on the Management of Shariah Committees

Guidelines for Islamic Real Estate Investment Trusts 2005

Guidelines on Islamic Fund Management 2007
Amendments and revisions on the relevant regulatory framework
continuously being made to cater the ongoing developments of Islamic
financial market
17
Why Islamic Wealth Management?
18
The Obligation
The Quran : on the Prohibition of Riba’ or usury
Al-Baqarah Verse 275
“...Allah has permitted trades and prohibited riba’/usury...”
Al-Baqarah Verses 278 - 279
“O you who believe! Fear Allah and give up what remains of your
demand of usury, if you are indeed the believers. If you do not do it,
take notice of War from Allah and His Messenger: but if you turn back,
you shall have the capital sums; deal not unjustly, and you shall not
be dealt with unjustly.”
O ye who believe! Devour not usury, doubling and quadrupling (the sum lent).
Observe your duty to Allah that you may be successful.
(Qur’an, 3:130)
19
The Obligation
“Shariah defines five necessities as necessary and basic for human existence.
It is the duty of every society to preserve and protect the five necessities; other
wise human life would be harsh, brutal, poor and miserable here and in the
hereafter”. (Islamic Divine Law (Shariah), The Objectives of The Islamic Divine Law – Mashhad Al Allaf)
The five necessities are
• Religion (Deen),
• Life (Nafs)
• Intellect (Aqal)
• Progeny (Nasal)
• Property (Maal)
Hence the need to manage wealth in accordance to Shariah.
20
The Market Trend - Latent Demand in Malaysia
•
•
•
•
There are increasing numbers of
discerning
Muslims
more
concerned with how their monies
are spent & kept. An indicator is the
trend of zakat (tithe payment.
Zakat Collection in Malaysia
Millions
700
600
Zakat collections between 1996
and 2005 have been growing at a
CAGR of 15% p.a.
By end 2006 it is estimated that
zakat collections reached some
RM600 million
Zakat on personal income and
zakat on savings represents some
71%
of
zakat
collected;
approximately 50% of zakat
collected is by way salary
deduction.
500
400
300
200
100
0
1996
1998
2000
2002
2004
2006f
Year
Source PPZ and CIMB Islamic
21
The Market Trend – Growing Islamic Banking An Indicator of Growing
Wealth
•
Islamic banking has been a key contributor to growth in the financial markets
•
It is estimated that at end 2007, USD34 billion assets are held in Islamic banking
representing 13% of total financial assets. (BNM)
•
The bulk of deposits is predominantly in investment and savings type whereas financing is
mainly disbursed for purposes of home and auto purchases a clear indicator that affluence
of Islamic banking population is growing.
•
Islamic banking Approximately 70% of Islamic banking customers are non-Muslims.
Islamic Banking Statistics (RM ' BIL)
140
120.99
117.45
111.82
120
98.58
94.99
86.22
83.87
82.22
100
76.84
72.86
68.07
59.35
69.82
80
60.21
67.36
53.18
47.01
57.84
47.11
48.62
60
35.92
36.72
40
28.32
20.82
20
0
2000
2001
2002
2003
2004
2005
2006
2007
Year
Total Asset
Total Deposit
Total Financing
22
Market trend - The Need for Planning.
Estate planning is becoming increasingly important to address generational
wealth transfer.
In Malaysia as at July 2006 there is an estimated RM38 billion worth of
inheritance assets that have failed to be distributed due to improper estate
planning. A vast proportion of this has been classed as assets belonging to
Muslims.
Thus, there is a need for proper planning to administer one’s assets.
In Islam, the virtues of planning are revealed in Verse 47 of Surah Yusuf
•
“For seven consecutive years, you shall sow as usual and that (the
harvest) which you reap you shall leave in ears, (all)-except a little of which
you may eat.”
23
Malaysia as an Islamic Wealth Management Hub
24
Malaysia: A Global Islamic Capital Market
By Nov 2007, 86% of Bursa Malaysia comprises of shariah compliant stocks
Market capitalisation of shariah compliant stocks accounted for RM705.05 billion or 63.74% of total
domestic market capitalisation as at December 2007
Compared to the developing GCC & MENA stock markets, Bursa Malaysia provides more choice in
terms of sectoral opportunities thereby providing better risk diversification
1000
800
900
Saudi
UAE
677
700
700
600
699
636
Bahrain
Malaysia
853
778
800
600
886
855
Billions
Size of Malaysia’s Equity Market
Top 10 Companies % of Total Market Capitalization
500
585
544
500
400
US
400
300
UK
300
China
200
200
100
100
0%
20%
40%
60%
80%
(Source: Bursa Malaysia,
E&Y Islamic Funds and Investment Report 2007)
100%
0
0
1999
2000
2001
2002
2003
Total Listed Companies
2004
2005
2006
2007*
Market Valuation
(Source: Bursa Malaysia, Securities Commission)
* 2007 figures Number of Companies as at Nov 07, Market Cap as at end Dec 07
25
Malaysia: A Global Islamic Capital Market
•As of December 2007, approximately 66% of new Islamic fixed income securities globally were issued in
Malaysia. The remaining global issues are from the Middle East / GCC and offshore jurisdictions.
•Recent experience has shown that products with more global features attract more investment from
abroad vis USD denominated sukuks
As at December 2007
As at December 2003
Malaysia
90%
Bahrain
4%
Saudi Arabia
2%
Indonesia
0%
Qatar
3%
Others
1%
Malaysia
65.80%
Saudi Arabia
8.18%
Caymans
7.67%
Others
3.84%
Jersey
5.97%
UAE
8.54%
(Source: The Islamic Capital Market Task Force (IOSCO) Report, ISI Emerging Markets, Bloomberg)
26
Islamic Papers have always Outperformed Conventional Papers in Malaysia
Ringgit Bonds with maturities of 1-year and above
Ringgit Bonds with maturities of 5-years and above
155
155
Index reading
Av. Annualized Returns
Sep-06
Jun-06
Mar-06
Dec-05
Sep-05
Jun-05
Dec-04
Sep-04
Conventional
Jun-04
Sep-03
Sep-06
Jun-06
Mar-06
95
Dec-05
95
Sep-05
105
Jun-05
105
Mar-05
115
Dec-04
115
Sep-04
125
Jun-04
125
Mar-04
135
Dec-03
135
Sep-03
145
Mar-04
Islamic
145
Mar-05
Conventional
Dec-03
Islamic
Average Duration
1-year and above
Islamic
145.47
Conventional
138.35
Islamic
7.64%
Conventional
6.27%
Islamic
4.73
Conventional
3.98
5-years and above
142.07
125.43
7.57%
4.39%
6.32
6.11
(Source: CIMB Fixed Income Research)
27
Leading in Islamic Asset Management
Malaysia has some 134 funds at the end of 2007 and is estimated to account for 22% of Islamic funds
worldwide (Securities Commission, Eurekahedge)
No. of Shariah Funds vs Conventional Funds
No. of Funds
Fund assets have been growing at a CAGR of
38% per annum between 1997 and 2007.
600
500
400
100
16.90
6.8
7.7
8
7.5
9.17
6.76
6
8.49
4
4.75
2
0
2003
2004
2005
2006
55
71
83
100
134
2003
2004
2005
2006
2007
Shariah-based
12
9.98 10
8.6
257
171
Year
(%)
NAV (RM billion)
Shariah-based Unit Trust Funds
316
229
200
0
18
16
14
12
10
8
6
4
2
0
387
300
Conventional
The total NAV of Islamic unit trusts in Malaysia by
end 2007 stood at some USD5.12 billion or 9.97% of
total outstanding unit trusts net asset value
(Securities Commission)
2007
Year
NAV
% to Total Industry
28
Growing Potential of Takaful
Takaful sector has been growing at an average of 17% p.a. since 2001 and by end 2007 total
contributions were estimated at USD931 million. (BNM, Islamic Finance News)
Growth of takaful is driven by demand for mortgage, motor, medical and education plans.
In the same period total assets of Takaful are estimated to amount to USD1.7 billion.
Breakdown of Family Takaful Contributions
2001-2006
2006
Thousands
Total Takaful Contributions 2003-2006
717.2
2005
553.8
1.4
1.2
1
IL
Annuity
Group
Indvdl
Year
0.8
2004
0.6
492.5
0.4
2003
403
0
500
0.2
1000
1500
2000
Millions
Family Takaful Assets
2500
0
2001
2002
2003
2004
2005
2006
General Takaful Assets
29
Future prospects for Takaful
Country
2005 Premiums (USD)
Life
Non Life
299.5
219.0
Relative
Penetration
137%
GDP per capita
USD
6,893
5,216
World
Total
518.5
Malaysia overall
283.3
188
95.3
197%
13.2
9.7
3.5
273%
Malaysia Takaful
Source Malaysian S&P, Islamic Finance News, Swiss RE Sigma Report, BNM
As at end 2006 Takaful penetration in Malaysia is estimated to be 6.3%.
Family takaful penetration relative to general takaful penetration is higher,
indicating that future takaful growth will be driven by demand for more products
from family takaful segment.
Malaysia’s has a relatively broader distribution infrastructure for Takaful
compared to other regions (direct agents, direct mail, bancassurance). This is
expected to be one of the key contributors to deepen the Takaful market.
30
Other recent product innovations
There is increased depth in products and services
•
Shariah compliant REITS have been listed on Bursa since 2005. REITS offer more
diversification opportunities in addition to regular income streams. Despite higher
relative withholding tax, there is growing interest from GCC investors in
infrastructure projects slated (eg IDR) and their potential for providing long term
stable income as REITS
•
Regulated Short Selling reintroduced in Jan 2007 brings Bursa closer to developed
market standards by giving investors opportunities to make profit despite bearish
market conditions
•
FTSE Bursa Indices enhance the attractiveness of Malaysia as key destination for
global Islamic fund flows by providing investors internationally accepted
performance benchmarks
•
Exchange Traded Funds – Asia’s First Shariah compliant ETF was launched Jan
2008 with a public spread oversubscribed by 22.5 times. This development adds to
the growing list of liquid investment options available to investors
•
Islamic derivatives – Futures Crude Palm Oil (FCPO) and Single Stock Futures
31
Increasing Professional Capabilities in Malaysia
• Financial Planning/ investment advisory services continue to experience healthy
growth driven by increasingly complex products and growing client sophistication
• As at end 2006 there are some 11,500 memberships registered with major
financial planning bodies representing a growth of some 14% in the last 2 years*
• Financial institutions are increasingly placing strong emphasis on WM divisions as
a client retention strategy as well as a means to grow revenues
• In line with general move to increase professionalism of advisory services training
programs that are Islamic finance focused have emerged
•
2006 - INCEIF established to support the need to develop Islamic finance talent
•
2007- Islamic Financial Planner developed jointly by FPAM & IBFIM
*Source FPAM, MFPC, MChFC
32
Opportunities and Issues of Islamic Wealth Management
33
Drivers for Islamic Wealth Management Growth
•The sustained rise in price of petrol is expected to continue to drive growth for
development of Islamic finance products as investors, for example from the the
Middle East, seek appropriate avenues for diversifying economic, business and
financial holdings
•Whilst major investments are likely to be driven by sovereign wealth funds and
government investment corporations another key segment looking for
investment opportunities are high net worth individuals
•With its diversity of Islamic finance products and experienced players Islamic
capital markets such as Malaysia, are expected to be at the forefront of
capturing the anticipated net capital outflows of oil producing nations
•Supported by a facilitative and comprehensive regulatory framework Islamic
finance has come to the stage where development in wealth management
services will drive future growth
34
Opportunities: Wealth Worldwide
• The numbers of HNWI expected to increase supported by economic
expansion of Asia Pacific and MENA (Middle-East-North-Africa) regions
• Some USD1.5 trillion of Gulf Corporative Countries (GCC) funds are held in
assets worldwide vested in treasuries, corporate bonds, equities and funds.
The GCC region accounts for 3.2% of the global high net worth population.
(S&P, Islamic Finance News, Cap Gemini)
1996
# of HNWI’s
(Financial Assets > $1
million)
Estimate of HNWI
Wealth
# of Ultra HNWI’s
(Financial Assets >$30
million)
2006
4.5 million
9.5 million
$16.6 trillion
$37.2 trillion
2011
$51.6 trillion
95,000
1% of HNWI
population
1/3 of HNWI wealth
Source: World Wealth Report 2007, Cap Gemini
35
Opportunities: Global Product Acceptance
Malaysia is known for coming out with innovative products.
Shariah harmonisation has helped to improve marketability of products in markets
beyond Malaysia
• Alternative Sukuk structures using globally accepted Islamic principles have
consistently been oversubscribed
• Shariah compliant structured products structured in Malaysia have been successfully
offered regionally viz Brunei, Singapore & Indonesia
• Domestic Shariah compliant unit trusts that choose to list cross border on DIFC need
only provide Shariah disclosure
Harmonisation is not Standardisation. Differences of opinions are well celebrated
in Islam and could contribute towards developing creative and innovative products.
36
Issues: Experienced Islamic Finance Professionals Must Grow Faster
The provision of sound advice requires experience. Analysis must take into
account both personal and business needs looking at financial and non
financial products. To be a trusted advisor, he or she should be well rounded.
Recognizing that a wide skill-set is required for a robust industry. Other
jurisdiction has established key learning framework that is backed by global
industry players for fast tracking the development of wealth management
services.
Similar or better approach must be undertaken in Malaysia specifically for
developing Wealth Management skills.
37
Issues: Limited Product Developments in Islamic Estate Planning
• Islamic products for wealth distribution are largely undeveloped. The limited offerings
available are based on basic fiqh concepts that are accepted under existing civil laws
• Conventional products are comparatively more developed and have greater variety.
For instance the concept of trust can be applied to various purposes such as living
trusts, family trusts, education trusts, unit trusts etc.
• A conventional trust deed does not confine the assets settled to be shariah compliant.
There is a need for a specific document that functions as a trust but is Shariah
compliant
• Islamic Trust Deed or Amanah Deed may provide a solution. Such an Amanah deed
would ensure that the assets are settled and managed in accordance Shariah
• Current practice requires an individual to hibah their assets prior to establishing a
trust. Without doing so trusts created may fail as any assets not willed or given in
hibah would form part of the estate to be distributed according to fara’id.
38
Issues: Developing concepts into Viable Products
More research must be made to develop fiqh concepts into credible products
that are endorsed by the industry.
An example is the concept of Waqf i.e. properties (fixed or moveable) settled
for the benefit of Waqf beneficiaries.
Currently waqf falls under the purview of state religious authorities, waqf is one
of the largely untapped potential in wealth distribution
• Opportunities exist to
•
Develop idle Waqf lands to maximise revenues to beneficiaries
•
Enhance the attractiveness of Waqf assets as Islamic financial instruments
•
Utilise Waqf as potential product concept for wide arrays of applications
39
Issues: Lost Opportunities
Local financial institutions may only offer products developed in Malaysia or
approved by regulators therefore limiting the creation of an attractive portfolio
that takes advantage of market timing in global markets.
HNWI’s are generally highly seasoned investors and domestic service
providers should be able to offer a product suite comparable to that of an
offshore bank.
Locally registered financial institutions have attained the competency level of
offering global products and are better placed to advise domestic HNWI on their
portfolio.
However under the MIFC agenda Islamic banks have the opportunity to
conduct international currency business in Malaysia and offshore product
offering is possible.
40
Moving Forward : “Malaysia As An International Islamic Financial Hub”
• MIFC - nationwide initiative to promote Malaysia as an International Islamic
Financial Centre.
• MIFC aims at fortifying Malaysia’s position as a vibrant, innovative and competitive
International Islamic financial hub.
• Vision in conjunction with MIFC - to strategise to promote Malaysia as a global
reference centre for Shariah views on Islamic banking and finance, banking
on our unique culture and long history of Shariah tolerance.
• By promoting genuine Shariah tolerance, Malaysia can aspire to become the
cosmopolitan Shariah reference centre where varied Fiqh views can be discoursed
and put into practice.
• Global players would assemble here for latitude in creation and innovation, in
search
of
new
ideas
for
their
financial
products.
41
Moving Forward
• The results of regulatory liberalization since 2005 and progressive Shariah
research are beginning to take effect with more sophisticated products and
services such as shariah compliant structured products, real estate
investment funds have been available to retail clients.
• Whilst wealth managers are able to address the issues of wealth
enhancement, protection and distribution, existing services need to be
further developed to allow for more customization and opportunity for returns
enhancement in all economic and investment cycle
• Leveraging on the strengths of its comprehensive domestic infrastructure,
active market making and products innovation Malaysia’s Islamic capital
market is poised to develop into a key centre for international Islamic funds
to reside. However regional competition is expected.
• Islamic banks such as Faisal Bank and CIMB have establishment of Islamic
Private Banking services in view of the potential growth of Islamic wealth
management.
42
Contact Details
London
New York
Hong KongTokyo
Bahrain
Yangon
Bangkok
Kuala Lumpur
Singapore
Brunei Darussalam
Jakarta
Please direct all queries to:
Mohd Willieuddin Lim
Director, Global Markets
CIMB Islamic Bank Berhad
1st Floor, Menara Promet, Jalan Sultan Ismail,
50250 Kuala Lumpur, Malaysia.
Tel: +603 2116 1270, Fax: +603 2144 8509
Email: willieuddin.lim@cimb.com.
• Emphasis on knowledge
products for private clients
and institutions;
• Leveraging regional product
expertise;
• Understanding of local
requirements;
• Capable banking
infrastructure to execute
transaction;
• Comprehensive banking
franchise;
• A top provider of tailor-made
financial solutions to clients
across the region;
• Kuala Lumpur is the leading
Islamic financial centre.
43
Important Notice
This document and its contents are proprietary information and products of
CIMB and may not be reproduced or otherwise disseminated in whole or in
part without its written consent.
The information in this presentation reflects prevailing conditions and our
views as of this date. In preparing this presentation, we have relied upon and
assumed, without independent verification, the accuracy and completeness of
all information available from public sources or which was provided to us or
which was otherwise reviewed by us. Although the information contained
herein is believed to be reliable, CIMB makes no representation as to the
accuracy or completeness of any information contained herein or otherwise
provided. Nothing contained in this presentation is, or shall be, relied upon as
a promise or representation as to the future.
44