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 Asia-Pacific. 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 Asia-Pacific 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.