Article 1

Malaysia is one of the countries that use the Islamic banking in the global
market. It is found that, Malaysia is in an advantageous position to capitalise on
the Islamic finance and capital markets. Besides, Malaysia has become a
blueprint for many countries in developing their own capital market.
Nowadays, Islamic banking is such a good alternative compared to the
conventional banking. This can be approved by when the assets of Islamic
banking have reached to 60% of the global Islamic banking market in AsiaPacific. Malaysia is called as fast clip because of their effort in developing the
Islamic banking began more than four decades ago. In fact, by using the
international best practices and followed by the syariah principles, Malaysia
managed to draw up a comprehensive regulatory framework and become the
place to be for facility in the success of Islamic banking that rests on a strong
regulatory.
Malaysia is advantageous in capitalise on the Islamic finance and capital
market because the country is in the advance than other country in developing
Islamic banking. As evidence, once Tabung haji was set up 40 years ago it is a
bench mark for the overall Islamic finance industry to expand in Malaysia. In
order to achieve their main objective in establish Malaysia as an international
Islamic capital market centre, the country has develop and well planed the
Malaysia Islamic financial over the last 30 years and create a very sustainable
and market-friendly framework of legislation. In fact, Malaysia is the one and
only country that has a comprehensive framework in global market.
Besides that, Malaysia has been seen as many first which is the first bai
bithaman ajil, the first sukuk mudharabah, the first corporate sukuk ijarah, the
first sovereign suku ijarah and the first tradable sukuk istisna. Besides, Malaysia
is also progressively strengthening its position as one of the key capital market
centres in the global area. In addition, Malaysia has made notable progress as a
centre for sukuk origination.
On top of that, the SC has approved eight Islamic fund management
companies to date. These companies are expected to play a catalytic role in the
internationalisation of the Islamic capital market. Besides, it also expected that
the development can help in build further initiatives to develop a large pool of
expertise in fund management as well as in syariah aspects. In fact, Malaysia is

the only country in the world that has Islamic IPO guidelines to facilitate
companies to do IPOs in a syariah-compliant way. Besides, they are also the only
country with Islamic REIT quidelines in the world.
Stepping up to the next level, Malaysia now has a comprehensive Islamic
financial system that comprises the banking sector, takaful and the Islamic
money and capital markets. In this stage, Malaysia now set for the Islamic
finance and capital markets to scale the next level of growth. Product innovation
is the key to this level of growth. To do this, they look to evolve a greater
portfolio of product and services for local markets and clients.
As conclusion, Malaysia has advantageous position to capitalise the
Islamic finance and capital markets. Malaysia has all the ingredients to become a
major global hub for Islamic finance and capital markets. The key is to step up
the pace to build a lead over the other players that are coming up fast.

Article 2
The development and growth in Islamic banking and finance has become
the unexpected catalyst and such an alternative to conventional banking crisis.
This can be means that, the Islamic banking and financial market in Malaysia has
entered into maturity which can be accepted by the market in the country. By the
successful in this Islamic financial market in providing a great value proposition
to the market and it has been deemed a viable alternative to the conventional
bank.
Islamic banking and finance still maintain their successful in this industry
by providing financing to real productive activities. Besides, they also didnt
accept company that are in an extremely high leverage position. Most
importantly, is the level of transparency in terms of telling people what they are
investing in and the actual risk that they will faced. This shows that, no doubt,
the current global financial crisis has put Islamic banking, which is viewed as
being more conservative than conventional banking, in a favourable light.
The central bank, Bank Negara Malaysia bring a vital role in and dedication
to developing the industry in the country and being a catalyst in make Malaysias
position as one of the leaders in Islamic banking market globally. The central
banks effort in this field include the establishment of a syariah advisory council
as the sole authority and references on all syariah matters, permitting
conventional banking institutions to offer Islamic banking products and services
on a window basis, creating a dual banking system, establishing an Islamic
interbank market and developing an Islamic capital market. In 2004, the central
bank liberalised the Islamic financial system in the country by issuing three new
Islamic bank licenses to foreign Islamic financial institution. Clearly, Bank Negara
efforts have propelled Malaysia into one of the top spots in the global Islamic
banking area and given the system a strong foundation.
In addition, Malaysia is widely acknowledge to be at the forefront of
Islamic finance and its success underlines the importance of strong government
support and regulatory guidelines, building scale and engaging conventional
banks, adopting flexible, holistic approach and establishing supporting financial
infrastructure and institution. Since the success of Islamic banking rests on a

strong regulatory framework, this will ensure the stability of the system since
Malaysia has already acknowledge

the

important the

strong

regulatory

framework in maintain the successful in Islamic banking and finance.

Operating in parallel with conventional banking, Islamic banking has

experienced rapid growth in the recent past, enhancing its significant in the
Malaysian financial system. Malaysia also is considered as a perfect example of a
co-existence model, where the foreign and domestic banks operate in a plural
society. Many banks have dual offerings, where conventional banks have Islamic
product offerings such as Islamic banking assets, loans and deposits which have
grown rapidly than their conventional counterparts. Islamic banking in AsiaPacific is on the rise, growing at a rate second only to the Middle East. The
overall economic growth of this region has created favourable circumstances for
the growth of Islamic banking.
Overall, although Islamic banking and finance are guided by the syariah
principle, it still didnt give an effect on the market and now they can accept the
Islamic banking and finance globally. One way to overcome the challenges that
industry faced is by being innovative with the Islamic banking products and
ensure whatever they offer the market is competitive, of high quality and meets
the currents needs.

Article 16
This article is about the development of Islamic bond or sukuk in Malaysia
that has made the country become a global Islamic finance centre. It shows that
the country had become the worlds largest sukuk market, accounting for 68.9%
of the worlds Islamic bonds; according to Bank Negara.
This successful can be achieved because of Malaysian corporate sector
went with the familiar and inclined towards tapping the equity and banking
markets, that is more better developed, when the need to raise capital arose.
Eventhough Malaysia has faced a challenge because sukuk endured a slow start
since the early 1980s, but The Malaysian corporate sector can overcome the
challenges with a great effort with the market.
On top of that, the success of the bonds now meant that the country was
positioned as the largest bond market in the Asean region and ranked third in
Asia overall. The local bond and sukuk markets became attractive options for
corporation looking for lower cost and more viable funding alternatives.
As a conclusion, the Islamic bond or sukuk is also important in maintain
the successful in Islamic banking and finance market. The first sukuk was issued
in 1990, since then, it has evolved in depth and sophistication and contribute to
the economic growth in Malaysia.