Islamic Wealth Management Sector Growing Fast In Malaysia

Prime Minister Datuk Seri Najib Tun Razak announced today that Malaysia is setting its sights on Islamic wealth management as a pivotal growth area. During his keynote at the 12th World Islamic Economic Forum (WIEF), held with Indonesian President Joko Widodo and WIEF Foundation chairman Tun Musa Hitam in attendance, Najib highlighted Malaysia’s strategic focus on expanding its footprint in the global Islamic finance sector.

With an ambitious vision to forge collaborations across borders, industries, and academic realms, Malaysia aims to enhance its international presence, bolster talent, and advance the global Islamic capital market. This initiative is set to benefit a broad spectrum of stakeholders, emphasizing Islamic finance’s role in promoting sustainable and socially responsible investment opportunities.

A Global Hub for Shariah-Compliant Business

The Malaysian Islamic capital market, valued at RM1.7 trillion, has seen exponential growth, tripling in size over the past decade and cementing Malaysia’s status as a leading destination for Shariah-compliant business. Dominating the sukuk market with a 54.3% share of global sukuk outstanding as of 2015, Malaysia also ranks second worldwide in Islamic fund management assets.

Prime Minister Najib, doubling as Finance Minister, proudly reflected on Malaysia’s economic milestones since 2009, including the creation of 1.8 million jobs, a nearly 50% increase in Gross National Income, low inflation, and soaring foreign direct investment (FDI) levels. He credited these achievements to the country’s national transformation programmes, which have bolstered Malaysia’s economic resilience amidst global financial uncertainties and fluctuating commodity prices.

Empowering a Thriving Global Islamic Economy

Najib also spotlighted the dynamic participation of Muslims in the global Islamic economy as investors, manufacturers, and bankers, among other roles. With rising consumer spending driven by a demand for ethical finance, halal products, and Islamic tourism, even non-Muslim consumers are drawn to the Islamic economy’s ethos of social consciousness.

Highlighting the rapid growth of the Muslim economy and consumer spending projections to hit US$2.6 trillion by 2020, Najib underscored the WIEF’s focus areas, including sukuk, halal industries, and disruptive technologies. The forum aims to foster an inclusive world that prioritizes education, entrepreneurship, and innovation, celebrating diversity as a source of strength.

Charting a Future of Inclusive Growth and Dialogue

Malaysia’s leadership in Islamic finance not only positions it as a key player on the global stage but also as a bridge for cross-cultural dialogue, promoting a more equitable economic model worldwide. As the forum continues, Malaysia’s commitment to sharing growth benefits, empowering women, and leveraging knowledge for social good remains a beacon of hope for a more inclusive future.