Beruflich Dokumente
Kultur Dokumente
The Islamic Banking Act 1983 provides new avenues of financing for Islamic
banks where products bearing trading, leasing and partnership contracts are
allowed in the banking business. It opened up vast opportunities for new
product innovation beyond traditional lending and borrowing facilities found in
conventional banking. Islamic contracts such as murabaha, ijarah, istisna,
salam, wakalah, mudarabah and musharakah can be readily applied to deposits
and financing activiitesof Islamic banks. With current market share of Islamic
deposit and asset at about 14 per cent each, it is a great challenge for Islamic
banking to achieve the 20 per cent market share target in year 2010. Hence
product innovation is critical. Prevailing financial crisis in the US saw greater
effort in risk and capital management of Islamic banks.
The Islamic capital market gradually developed in 1990s and was identified in
the Capital Market Masterplan (CMP) as a niche area where Malaysia was
competitively placed to play a leading international role. In 1999, the KLSE
Syariah Index was introduced as a barometer of Islamic equity market activity.
Earlier in 1997, the inaugural list of Syariah approved securities were released
in June 1997 with around 50 per cent of stocks listed as Shariah compliant.
The East Asian economic crisis prompted the birth of the Islamic bond market
to relieve stress on banks in providing capital to business. In 1990, the first al-
bai-bithaman ajil Islamic bond worth RM125million (USD33 million) was issued
by Shell MDS Sdn. Bhd. The Malaysian government further issued RM2.2
billion (USD600million) global sovereign sukuk in 2002 that uses ijarah as the
income generating vehicle, a vast departure from local Islamic debt securities
commonly structured under bay al-inah contract. Islamic bond grew at an
average 150% over 1999-2003 peaking at RM14 billion in 2002. The world
largest sukuk issuance of RM15.35 billion (USD4.8billion) went to Binariang
GSM in 2007.
The Islamic fund market lifted off in 1997 with two funds at 3 % market share
and grew steadily 52 Islamic funds in 2003 with a total asset value (NAV) of
around RM4.6 billion. As of end 2007, the number of Islamic unit trust funds
in Malaysia has grown to 134 funds with a net asset value of RM16.9 billion
(USD4.8 billion).