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Published On:18 December 2011
Posted by Indian Muslim Observer

Islamic Banking market share to rise next year

Kuala Lumpur: The market share of Malaysia's Islamic banking assets of the total banking industry is expected to increase, probably to 25 per cent next year from the 22 per cent recorded in 2011, said Islamic Banking and Finance Institute Malaysia (IBFIM) chairman Datuk Seri Zukri Samat.

"We hope our Islamic banking assets will grow to a higher level from 22 per cent (this year) to probably 25 per cent (next year)," he said on the sidelines of the launch of the institute's Islamic Finance Qualifications Framework and Progression Route (IFQFPR), the country's first ever innovation in Islamic finance talent development here Wednesday.

The institute as CEO Datuk Dr Adnan Alias said in general all Islamic finance players in the country had recorded encouraging performances, which indicated good growth.

"So, I'm confident that Malaysia can maintain the double digit growth for next year.

"Although there is a crisis in Europe which could affect Malaysia, as the Governor had said earlier, Malaysia has strong fundamentals," he said at a press conference after the launch here.

Earlier, Bank Negara Governor Tan Sri Dr Zeti Akhtar Aziz said in her speech that the market share of Islamic banking assets of the total banking industry had grown from only 6.9 per cent in 2000 to 22 per cent in 2011.

She said the contribution of Islamic finance to the Malaysian economy had also been growing significantly, accounting for 2.1 per cent share of the country's Gross Domestic Product in 2009, as compared to only 0.3 per cent in 2000.

"This has led to greater job creation where employment in the Islamic financial industry accounts for 11 per cent of total employment in the financial sector," she said.

On the international front, Zeti said greater liberalisation of the Islamic financial system had seen greater foreign presence and participation in Malaysia's Islamic financial system.

There had also been an increasing trend in foreign participation in the domestic Islamic banking and takaful industry, as well as the Islamic capital market, she said.

"Moving forward, it is envisaged that Islamic financial institutions in Malaysia will also expand beyond national boundaries to increase economic and financial linkages with other parts of the world," she added.

Zeti said over the next 10 years, the overall financial sector is anticipated to need about 200,000 employees, an increase of 56,000 over the current 144,000.

"There will therefore be strong demand across the financial sector, particularly for specialised skills in high-growth and niche areas such as wealth management, Shariah advisory, corporate finance and investment advisory services," she said.

Zeti said the launch of the IFQFPR was part of the strategy for upgrading the skills and competencies of the existing talent in the industry.

"It is an innovative training framework that provides a progressive structured route to the acquisition of the relevant knowledge for the different levels throughout the career of the workforce in the industry," she said.

According to Zeti, successful completion of the comprehensive series of programmes would lead to qualifications at three different levels.

"The modules of the programmes have been developed with extensive consultation with the industry, and the framework also offers flexibility in learning, as participants can complete the modules at their own pace," she added.

(Courtesy: Bernama)

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Posted by Indian Muslim Observer on December 18, 2011. Filed under , . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response

By Indian Muslim Observer on December 18, 2011. Filed under , . Follow any responses to the RSS 2.0. Leave a response

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