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© 2012 INCEIF
Keynote Speech“The potential role for Malaysian Islamic Financial
Institutions in the changing landscape of banking trends leading to the expansion of Islamic Finance in the
United States”
4 November 2013
Daud Vicary Abdullah, President & Chief Executive Officer
The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only.
No portion of this document maybe used in any form or reproduced without prior consent from INCEIF.
© 2012 INCEIF 2
1. Islamic Finance - Where we are : Global Development & Progress of Islamic Finance
2. The Malaysian experience
3. The way forward
Agenda
© 2012 INCEIF
Islamic Finance Global Development & Progress of Islamic Finance
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© INCEIF 2012.
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INCEIF 2013.
Global overview of Islamic Finance
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© INCEIF 2012.
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INCEIF 2013.
The global economic crisis Islamic finance as an alternative
IF reaches the mainstream (The fastest
growing Industry)
Significant oil money from middle east
Market driven(Muslim underserved
and want to be served)
IF proven more resilient during crisis
Encourage Ethical values & CSR (Maqasid Al
Shariah)
Islamic financial sector is in a unique position to promote financial innovation and bring stability to global finance, as long as it is correctly nurtured and developed internationally.
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Sharing best practices: The Malaysian Experience• Comprehensive financial landscape• Changing of mindset
© INCEIF 2012.
FINANCIAL MARKETMoney Market Islamic interbank money market - Daily average transaction RM1 bilion Bursa Suq Al Sila’
Capital Market 57% of outstanding private debt are sukuk 88% permissible counters at Bursa Malaysia 144 Islamic funds
7The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF.
INCEIF 2013.
Malaysia’s comprehensive Islamic financial landscape
GOVERNANCELegal & Regulatory • Central Bank Act 2009• Islamic Bank Act 1983• Takaful Act 1984• Government Funding Act
1983• Capital Market Services Act
2007• Malaysia Deposit Insurance
Corporation Act 2005• Risk Management
Shariah Advisory Council • Bank Negara Malaysia• Securities Commission
Dispute Resolution• Judicial system – dedicated
High Court • KL Regional Centre for
Arbitration• Financial Mediation Bureau
DIVERSIFIED PLAYERS Islamic Banking 16 Islamic banks 6 DFIs offering Islamic banking services 5 International Islamic banks [15 International currency business units (ICBU)]
Takaful 12 takaful operators 4 retakaful operators 1 International takaful operator [9 ICBU]
Fund Management 12 Islamic fund management companies 35 fund management companies with Islamic mandates
IslamicBanks & Takaful
CompaniesIslamicCapital Market
IslamicMoney Market
Money market
Conventional Banks & Insurance
Companies
Capital market
MalaysianFinancial System
Dual banking system
Supported by human capital infrastructure
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© INCEIF 2012.
8The information contained in this document is the intellectual property of INCEIF and has been provided solely for viewing purposes only. No portion of this document maybe used in any form or reproduced without prior consent from INCEIF.
Correcting misconception & demystifying Islamic Finance
Ensuring value proposition
Hand by hand to grab business opportunities
Providing supporting legislation & regulation
INCEIF 2013.
Demystifying Islamic financeChanging the mindset of the masses
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© 2012 INCEIF 9
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The Way Forward:Building human capital
© INCEIF 2012.
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INCEIF 2013.
Talent DevelopmentBringing our talent up to speed
Education
LiquidityPerception
Enhance Shariah expertise and Human Capital Increase knowledge in Islamic Finance
Encourage right and comprehensive understanding Provide sufficient cross-border Liquidity
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© INCEIF 2012.
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Build quality education
Accreditation & Professional
standardsInteroperability
International standards
INCEIF 2013.
World class workforceWhat is needed
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© INCEIF 2012.
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INCEIF 2013.
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Some other thoughts…
© 2012 INCEIF
There is much to do&
Not a moment to lose
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© 2012 INCEIF 14
Thank You
Daud Vicary Abdullah
Tel:Email:Website:
+603 7651 4141
President & Chief Executive Officer
INCEIF 2013.
