Securities Commission Malaysia: Biannual Newsletter - Islamic Wealth Management

Jan - June 2014 issue of the Malaysian ICM bulletin published by the Securities Commission Malaysia (SC) is now available online.

Islamic fund and wealth management is an integral component of Islamic financial system. This is attributed to the significant rise in income and wealth of certain Islamic countries over the last four decades as well as the emergence of Islamic finance as a viable alternative to conventional finance. The benefits of Islamic fund and wealth management cut across racial and religious boundaries as it not only benefit Muslims who wish to see their wealth preserved and enhanced within the Shariah framework, but also to non-Muslims who may view this from an ethical perspective of managing wealth.

Global wealth is projected to grow at an annualized rate of 4.8% over the five-year period to 2017, increasing the size from US$135 trillion in 2012 to US$171 trillion in 2017. Much of this growth is expected to take place in the emerging market, which are collectively projected to account for US$25 trillion or 69% of this increase. Asia Pacific ex Japan is likely to be the main growth driver, expanding by US$20 trillion and accounting for 79% of the total projected increase in the emerging market or 56% of the global increase.1 Malaysia, given its established position as an international Islamic financial centre, is expected to play a significant role as a marketplace for Islamic fund and wealth management.
The articles “Positioning Malaysia as an Islamic Wealth Management Marketplace – A Regulator’s Perspective” and “Malaysia: A Centre for Islamic Wealth Management” provide some insights on the role of Islamic capital market towards transforming Malaysia into a global marketplace for
Islamic fund and wealth management.