Malaysia Well-positioned To Develop Islamic Finance Market Space - Affin Bank

By Suraidah Roslan

KUALA LUMPUR, June 19 (Bernama) -- Malaysia is well-positioned to develop the Islamic finance market space and be a hub for liquidity pooling, supported by growing demand in Islamic secure funding, said Affin Bank executive director of group treasury Hanif Ghulam.

He said the Islamic secure funding, specifically the Malaysian Government Investment Issue (MGII) programme, has reached RM42 billion in 2024. 

“The Islamic financial market has developed over the last few years, especially with the central bank’s initiatives to ensure market stability. We have built the depth of liquidity in the Malaysian Islamic financial space.

“So, we are well-positioned not only to respond to potential downside scenarios but also to seize opportunities in the market. We also have a large and wide array of products to cater for any risk in currencies and also commodities,” he told Bernama at the sidelines of the Sasana Symposium 2025 yesterday.

Hanif also highlighted Malaysia’s potential in attracting investments through sustainable and environmental, social and governance-related projects such as solar and hydroelectric.

To attract more foreign inflows into the Islamic capital market, he stressed the importance of standardising documentation and improving the legal framework, as well as easing entry and exit for investors in line with investment opportunity profile requirements. 

“If we can just get our infrastructure well-planned, well-developed in terms of documentation and access, we can grow this market by twofold or threefold,” said Hanif, who is also the chairman of the Islamic Financial Market Subcommittee (IFMC).

-- BERNAMA