KUALA LUMPUR, May 28 (Bernama) — MIFC Leadership Council (MLC) has presented its recommendations for the next stage of Islamic finance development in Malaysia.
MLC chairman Tan Sri Azman Mokhtar said in a statement today that the current environment presents a strategic opportunity for Islamic finance to assume a more influential position, thereby catalysing a fresh era of growth and advancement.
“In line with this vision, our position paper underscores our commitment to leverage the legacy of 60 years and collaboratively shape the future of Islamic finance and economics for a more inclusive and sustainable world,” he said.
The statement said Azman Mokhtar submitted the paper “Establishing Islah through Islamic Finance” to Prime Minister Datuk Seri Anwar Ibrahim at the launch of the Global Forum on Islamic Finance and Economics (GFIEF) here today.
The paper highlights the growth in Islamic finance with the formation of Lembaga Tabung Haji in 1963, followed by Bank Islam Malaysia Bhd in 1983.
As of 2023, Islamic financing amounted to about RM1 trillion, or 45.6 per cent of the total financing, while Islamic capital markets constituted about 64.4 per cent of the overall system, equivalent to about RM2.4 trillion.
The second section of the paper analyses the state of global and Islamic finance with the growing pressures and needs of economies and societies amid today’s poly-crises which includes the economy, development, inequality, sustainability, and humanitarian crises resulting from conflicts and displacements.
The report emphasises the need for immediate change and highlights the opportunity for Malaysia’s Islamic finance to enhance its position locally and abroad.
The paper also advocates an agenda for reform and restoration (Islah) of the economy and society, through Islamic finance and a call to action that outlines seven principles for change, 10 shifts or hijrah in areas and opportunities for change, five key thrusts for change, 10 MLC key focus areas and 18 initial MLC projects.
The paper is based on feedback and consultations with over 100 stakeholder sessions with regulators, industry players, scholars, and academia, inside and outside of Malaysia, during the last 18 months.
The MLC was established in October 2022 by Bank Negara Malaysia and Securities Commission Malaysia to advance the next phase of Islamic finance.
— BERNAMA
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