The Ninth Malaysia Plan for 2006 â€“ 2010 projected that the Islamic banking industry will continue to expand in parallel with conventional banking. By 2010, the Islamic banking industry is expected to constitute 20 per cent of the overall banking and insurance market. There has been a signi cant development of the Malaysia International Islamic Financial Centre (â€œMIFCâ€) initiative which aims to position Malaysia as a centre in the origination and trading of Islamic nancial instruments. The MIFC initiative will project Malaysia as a centre of excellence in education, training, consultancy and research in Islamic nance.
The Islamic nancial sector will therefore, continue to grow as an integral component of the Malaysian nancial system. As of July 2007, there were eleven Islamic banks comprising six Islamic subsidiaries (previously Islamic banking windows), two domestic Islamic banks and three new foreign banks.