Maybank Group Pioneers Global Islamic Banking with Hubs in Singapore and Dubai

SINGAPORE: Maybank Group, the Malaysian multinational banking and financial services corporation, unveiled a comprehensive strategic initiative, M25+, nine months ago. This initiative seeks to catalyze meaningful diversification across five strategic thrusts and augment key capabilities to ensure the group’s sustainable growth, rooted in a more profound purpose.

In a bid to buttress the proposed outcomes of these five strategic thrusts, Maybank has highlighted 12 strategic programs designed to bolster its foundation and competitiveness. These programs aim to generate significant value, enhance customer experiences, foster cross-sector collaborations, and stimulate regional group-wide integration through technology.

One such strategic initiative is the establishment of global Islamic wealth management hubs in Singapore and Dubai, highlighting Maybank’s ambitious move towards international Islamic banking leadership.

At the recent Invest ASEAN conference in Singapore, Maybank’s Group CEO of Islamic Banking, Datuk Mohamed Rafique Merican, shed light on this indomitable pursuit of global aspirations. When questioned about why Singapore, a non-Islamic nation, was chosen, Merican indicated that the locale was based on where clients felt comfortable investing their funds.

He hinted at a potential expansion to other centers of Islamic wealth management in future years, with Hong Kong as a potential destination. According to Merican, although Singapore houses a Muslim population of 15%, it also manages substantial funds on behalf of other Muslim entities where the conventional offering is still prevalent. This market situation, he believes, offers a unique opportunity to introduce Islamic finance as an alternative proposition.

Merican outlined the five pillars of Islamic finance – creation, accumulation, preservation, purification, and distribution – which Maybank intends to incorporate in this venture.

The Singaporean authorities have demonstrated an openness to the initiative, Merican added. While Islamic wealth management exists in Singapore, Maybank’s unique proposition involves the spiritual side of financial management, closely following Shariah’s advice.

Maybank Islamic, with about 67% of Maybank Malaysia’s financing, has a significant presence. Alongside Singapore and Indonesia, it contributes nearly 40% to Maybank Group’s profit before tax. Maybank Islamic ranks fifth in global asset standings, the only Malaysian and non-GCC bank in the top 10. These strong credentials support the organization’s aspiration to expand further.

Looking ahead, Merican envisions Maybank Islamic as a global influence in the Islamic finance industry and a viable alternative to conventional finance. With a unique proposition of Islamic wealth management and a global Muslim population of around 1.9 billion, or 25% of the global population, he anticipates a growing demand for financial services that meet their Shariah needs.