In the Economic Report 2013/2014 by the Ministry of Finance, the Islamic banking industry was stated to have shown significant progress with assets doubling to RM494.6 billion as at end of 2012. Market share increased to 24.4% of the total banking system as at the end of August 2013.
Islamic Finance Outlook 2014
2013 proved to be another sterling year for the Islamic finance industry with asset estimated at US$1.8 trillion, representing a 16% y-o-y growth. This year, global Islamic finance assets are expected to surpass the US$2 trillion mark and the industry is expected to continue a chart positive growth across all sectors. The industry will continue to grow driven by both demand and supply factors, and further facilitated by government agencies and financial regulators.
The Islamic banking sector has been the driving force of the global Islamic finance industry and Islamic banking assets are expected to reach US$1.6 trillion by end 2014.The global sukuk market is all set to continue its upward trajectory in 2014 as a number of high profile debut sovereign issuances are expected to take place this year.
Malaysia has proven that Islamic finance contribute to financial stability
Bank Negara Governor Dr Zeti Akhtar Aziz said Malaysia has proven that Islamic finance is not only contribute to financial stability, but also show an increasing number of economic sectors to participate in the financial system. She said the Islamic finance is extremely favorable to small and medium-sized businesses, as well as micro-credit, the agency Bernama. This has led to an increase in the diversification of the financial system, which will increase its flexibility and stability. Secondly, it is possible to expand our country’s international relations. In the current liberalisation and globalisation, the Islamic finance system is in anticipation of the opening of a new quality of international financial relations that exist in the world economy.
Annual Report 2013