Gateway to Asia
By: John Foster
There is more to Islamic finance that the Middle East as Malaysia shows with its initiatives
Malaysia leads the world for Islamic banking ‘firsts.’ Although Malaysia was not the ‘first in’ in terms of Islamic banking, it is undoubtedly the ideas factory for the Islamic world in terms of banking and financial services. The development of Islamic finance has grown hand in hand with the development of Malaysia’s economy. Growth has been supported by a robust regulatory framework, which has encouraged the creation of a wide range of innovative financial products. The sector has not only been backed by the government, but actively encouraged and the government has Islamicised its banking system in partnership with the financial institutions.