According to RNCOS Industry Research Solutions â€“ â€œMalaysia-Islamic Banking Sector Blooming Amid Crisisâ€, Islamic banking industry is prospering in Malaysia as it has successfully withstood the financial crisis that challenged the basic principles of traditional banking.
Further, according to The Asia Pacific Banking Industry Outlook Report 2010, the Islamic banking system in Malaysia which accounts for 16.3% of the total commercial banking assets, grew at a considerably higher pace than the rest of the banking sector. Our Prime Minister, Datuk Seri Najib Tun Razak, announced that Malaysia intends to issue further licenses for commercial banking, Islamic Banking, Islamic Insurance and also foreign banking licenses within the next few years. The report also mentioned that existing domestic Islamic banks are getting greater flexibility to enter into strategic partnerships with foreign players through an increased foreign equity limit of up to 70%.
Over the past few years, Islamic Banking sector has been going through its expansion phase and on account of increasing Islamic population and rising awareness, it is expected to continue its growth in future.