The Global Islamic Economy and Malaysia's current standings

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Growth and outlook of Islamic finance and economy

In this issue, the newsletter highlights the growth and outlook of Islamic finance and economy, with special focus in Malaysia despite the pandemic situation. The State of the Global Islamic Economy Report 2020/21 (the Report) estimated that Muslims spending on Islamic economy sectors reached USD2.02 trillion and Islamic finance assets recorded at USD2.88 trillion in 2019. The global Muslims spending is forecasted to decrease by 8% in 2020 due to the pandemic.

The Report also highlighted that Malaysia leads the overall Global Islamic Economy Indicator (GIEI) rankings for eighth consecutive year. This includes retaining its top position for Islamic finance sector alongside three other sectors. For more information on the global Islamic economy amidst Covid-19 and Malaysia’s rankings in the Report, download the infographic below.

The MIFC Team

Download infographic

News

Malaysia is set to reach its 40% Islamic financing target

Malaysia’s Islamic finance penetration rate has grown steadily over the years and looks on track to reach the central bank’s target of 40% share of total financing by the end of 2020, notwithstanding the unprecedented Covid-19 pandemic.

News

Islamic banking and capital market is expected to be stronger next year

The Economic Outlook 2021 report by the Ministry of Finance Malaysia accentuate that the ongoing promotion of Shariah-compliant products and digitalisation of services will provide the impetus for the country to position itself as a global hub for Islamic financial services.

Press Release

Malaysian takaful industry continue to grow despite challenging times

The Malaysian takaful industry continued its upward trend in enabling more Malaysians to obtain new Family Takaful protection with New Protection Value of RM364.2 billion in 2020 (as at end 30 Sept 2020).

News

Islamic banking has great potential in social financial instruments

Islamic banking has great potential to capitalise on Islamic social financial instruments such as zakat, waqf and alms which could be expanded to develop the underprivileged and communities affected by the economic uncertainty.

Report

Malaysia as leading Islamic finance education centre

The newly launched Islamic Finance Knowledge Outlook Report 2020 by INCEIF and Refinitiv highlighted that Malaysia has the most developed Islamic finance ecosystem globally and is a leading centre for Islamic finance education.

News

Sukuk issuances will continue to grow in 2020

Sukuk issuances is expected to grow from USD162 billion in 2019 to USD174 billion in 2020 as a means for government to meet funding needs post Covid-19.

Press Release

SC introduces new framework to facilitate offering of Islamic funds with waqf features

The Securities Commission (SC) launched a new framework to facilitate the offering of Islamic funds with waqf features which is applicable to existing and newly launched unit trust and wholesale funds.

News

IIFM publishes Ijarah Sukuk Standards

The International Islamic Financial Market (IIFM) published its Sukuk Al Ijarah Standard Documentation Templates to provide a standardised set of documents addressing challenges related to sukuk issuance documentation.

News

Islamic finance to be the fulcrum of Labuan’s inclusive future

Labuan IBFC recognises the potential of the Islamic fintech landscape, with Islamic green financing being an important service to financial institutions. Islamic fintech is by nature financially inclusive, aims to promote economic well-being and creates socio-economic equitable distribution.

Islamic Finance Dashboard

Upcoming Webinars

Accounting for Recovery of Islamic Finance
Date: 7 December 2020

Legal Documentation for Sukuk and Islamic Funds
Date: 9 & 10 December 2020

IFN Green and Sustainable
Date: 14 & 15 December 2020

Legal Documentation for Islamic Financing
Date: 16 & 17 December 2020

Click here for more information on upcoming webinars

Islamic Finance Library

Global News on Islamic Finance

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