Malaysia International Islamic Financial Centre is a hub for Islamic finance, providing a platform for financial institutions to operate and innovate. This centre offers a range of services, including Islamic banking, takaful, and sukuk.
The centre is strategically located in the heart of Kuala Lumpur, making it easily accessible to international investors and financial institutions. The Malaysian government has also implemented various initiatives to support the growth of the Islamic finance industry.
The centre is home to several key players in the Islamic finance industry, including Bank Islam and Maybank Islamic. These institutions offer a range of Islamic financial products and services, including Shariah-compliant deposit accounts and Islamic home financing schemes.
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Mifc's Role in Malaysia
MIFC's role began in 2006 as an initiative by the financial market regulatory body in collaboration with relevant government agencies to develop the Islamic finance sector in Malaysia through the involvement of industry and government.
The Malaysia International Islamic Financial Centre (MIFC) is tasked to strengthen the direction to promote Malaysia as a major Islamic financial hub at the international level.
In 2022, Bank Negara Malaysia (BNM) and the Securities Commission (SC) collaborated to establish the Malaysia International Islamic Financial Centre Leadership Council (MIFC Leadership Council).
This council is chaired by Tan Sri Azman Mokhtar and composed of local and international industry figures as well as BNM and SC representatives, serving as a platform to provide industry leadership.
Malaysia's leadership in Islamic finance has been recognised at the global level, ranking first for ten consecutive years in the "ICD-Refinitiv Islamic Financial Development Indicator".
Malaysia's Shariah-compliant financing and loans increased to 44.7 per cent in 2023 compared with 31.3 per cent in 2015 and 15.2 per cent in 2010.
The conventional banking sector is at a level of 55.3 per cent in 2023.
Malaysia leads the global sukuk market with a market share of 39 per cent, and is in first place in the Islamic financial index.
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Objectives and Goals
Malaysia International Islamic Financial Centre (MICF) has set clear objectives to achieve its goals. The MIFC aims to maintain Malaysia's position as a vibrant, innovative, and competitive Islamic financial hub.
The MIFC plays a key role in facilitating relationships between international Islamic financial markets. It also bridges and expands investment and trade relations between East Asia and the Middle East, West Asia, and North Africa.
The MIFC Executive Committee has been established to streamline public service delivery channels and aid the MIFC's progress. This committee consists of 28 senior executives from key federal ministries, government departments and agencies, financial and market authorities, and key banking and takaful industry members.
The MIFC Executive Committee provides high-level policy direction and oversees the review of existing policies to ensure comprehensive and coordinated promotion of the MIFC. The MIFC Secretariat, formed by Bank Negara Malaysia, functions as the single contact point for the MIFC.
Frequently Asked Questions
What is the ranking of Malaysia in Islamic finance?
Malaysia is ranked first in Islamic finance globally, scoring 103 in the 2023 Islamic Finance Development Indicator (IFDI) report. It leads 14 other countries in this ranking.
Which is the largest Islamic bank in Malaysia?
Maybank Islamic is the largest Islamic bank in Malaysia, holding a market share of 29.32% of Islamic financing and 26.04% for deposit and investment accounts as of 2023. With total assets of USD70.67 billion, it ranks among the top 5 global Islamic financial institutions.
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