Table of Contents

3 Islamic Finance: Global Overview

7 T
 he Malaysia International Islamic Financial Centre
(MIFC) Initiative

13 T
 he Centre for Human Capital Development
in Islamic Finance

37 Factsheet on Malaysia

43 Frequently Asked Questions

54 Contact Us
 Islamic Finance: Global Overview

Malaysia’s more than 30 years of industry-level experience in

Islamic finance has created a centre of Islamic finance knowledge
and thought leadership excellence. The comprehensive experience
gives Malaysia the credence as a globally recognised source of
Islamic finance professionals.

Abdulkader Thomas
Publisher of the American Journal of Islamic Finance
& a leading international practitioner of Islamic finance
Islamic Finance: Global Overview

Islamic finance has emerged as a major component of the mainstream
international financial system and creates opportunities and value
propositions to the financial sector as a whole.
Some of the notable trends of Islamic finance:
Robust Growth
• Islamic finance has expanded at an annual rate of 15-20%1
with a presence spanning more than 75 countries with 300 over
Islamic financial institutions.
• Sukuk market has increased at an average annual growth rate
of 40% with a current size of more than USD82 billion2.
Growing Interest
• Many of the world’s largest banks, foreign and domestic, have
engaged in Islamic banking and structured financial products.
• Greater clarity on the regulatory treatment of sukuk has provided
regulatory certainty to Islamic financial institutions with regard
to their investments in these instruments.
Market Sophistication
• Growing market sophistication in an increasing number of
regions; and from a niche market focusing on products to being a
mainstream financial system.
• Evolved from basic consumer or retail products into a full range
of product offerings under various Islamic contracts.
• Financial institutions have grown in quantity and quality into
various business models with distinct strengths and niche market.
International Infrastructure
• The roles of international standard-setting institutions with the
establishment of the Accounting and Auditing Organisation for
Islamic Financial Institutions (AAOIFI) and the Islamic Financial
Services Board (IFSB) have facilitated the harmonisation of
accounting and prudential standards across different jurisdictions.

Prospects and Outlook

• Rising demand for Shariah-compliant investments from
an estimated 1.6 billion Muslims worldwide3 and Islamic assets
are set to hit USD1.4 trillion by 20104.
• It is projected that the Islamic financial system will soon be
managing approximately 4% of the world economy5. 1 2  4
Source: Source: Islamic Finance Source: zawya.com –
• There is strong global demand for sukuk by conventional McKinsey, The World Islamic Information Service Islamic assets set for 25%
financial institutions. Banking Competitiveness 3
Source: growth by 2010
Report 2007-08, (8 April 2008)
islamicpopulation.com
“Capturing The Trillion (2007) 5 
Source: Information
Dollar Opportunity” Clearing House
– Islamic Finance

 Human Capital Development Islamic Finance: Global Overview 

The Malaysia International
Islamic Financial Centre (MIFC) Initiative
The Malaysia International Islamic
Financial Centre (MIFC) Initiative
Malaysia’s Comprehensive Islamic Under the MIFC initiative, financial institutions are welcome to use
Malaysia as a platform for their Islamic financial activities, leveraging
Financial Landscape Creates a Leading Edge
on a comprehensive system and a conducive environment available in
Malaysia for Islamic finance business. Various incentives are available to
Malaysia’s Islamic financial industry distinguishes itself as one of the
foreign financial institutions participating in the MIFC initiative including
proven platforms for conducting Islamic finance activities. The vibrancy
new licences for conducting foreign currency businesses, attractive tax
and dynamism of Malaysia’s Islamic financial system is reflected by its
incentives and facilitative immigration policies. Thus foreign financial
continual product innovation, a diversity of domestic and international
institutions may benefit from cost savings from a reduced cost of doing
financial institutions, a wide range of Islamic financial instruments, a
business, a shorter learning curve, shorter time to market, access to new
comprehensive Islamic financial infrastructure and adoption of global
markets and surplus funds and the advantage of having diversified into
regulatory, legal and Shariah best practices. Malaysia also holds the
a new asset class.
distinction of being the world’s first country to have a full-fledged
Islamic financial system operating in parallel to the conventional
banking system; and has placed strong emphasis on human capital
development in Islamic finance to ensure the availability of Islamic
finance talent. The MIFC initiative has gained global recognition for its efforts to
develop the Islamic financial industry. In June 2008, it was selected as the
Leveraging on the strengths of its domestic sector, Malaysia has “Best International Islamic Finance Centre 2008” at the 2nd Annual
launched the Malaysia International Islamic Financial Centre (MIFC) London Sukuk Summit Awards of Excellence. The summit is endorsed by the
initiative in August 2006 to offer its value propositions in Islamic finance UK Treasury, UK Trade & Investment (UKTI), City of London Corporation and
to the world – to leverage on its inherent strengths, advantages and the London Stock Exchange.
experience to tap the trillion-dollar opportunity that awaits financial
institutions worldwide.

 Human Capital Development The Malaysia International Islamic Financial Centre (MIFC) Initiative 
 Malaysia’s Proven Platform as an
International Islamic Financial Hub

Facilitative Business Environment

• Adopt global legal and regulatory best practices
• Well-developed Shariah governance with the central
Shariah Advisory Council providing clarity on Shariah issues
• Dispute resolution mechanism

Investment-friendly Policies
• Liberal Foreign Exchange Administration (FEA) rules
• Relaxation of foreign equity ownership rules
• Facilitative immigration policies

Cost Savings
• Tax neutrality treatment
• Attractive tax incentives for business and human capital

Innovative Structures
• Proven continual product innovation
• Increasing range of innovative Islamic investment products
• Emphasis on applied Shariah research supporting product development

Comprehensive Human Capital Development

• Comprehensive institutions to meet all level talent needs
• Large pool of Islamic finance professionals

Strategic Location
• Centrally located in the Asian time zone
• Linkages between Southeast Asia and the Middle East
to facilitate cross-flow of funds
• Diverse and growing community of domestic and
international Islamic financial institutions

10 Human Capital Development

 The Centre for Human Capital Development
in Islamic Finance

12 Human Capital Development 13

The Centre for Human Capital
Development in Islamic Finance
Malaysia has placed a strong emphasis on human capital develop- Malaysia as the Centre of Excellence in
ment alongside the development of the Islamic financial industry to Human Capital Development in Islamic Finance
ensure the availability of Islamic finance talent. Malaysia has been
at the forefront of Islamic finance talent development in providing
Excellent Working Incentives and Total Solution
a comprehensive and industry-oriented infrastructure to cultivate a Environment Facilitative Policies Approach
talent pool of skilled professionals. • Sustainable demand Talent Enrichment • Comprehensive human
for Islamic finance • Tax relief for education capital development
Malaysia has various institutions targeting all levels of Islamic practitioners expenses in Islamic solution geared to
finance education, training and research. Professional courses have • Huge job opportunities finance studies meet all level needs
- diversity of financial • Establishment of a for talent development
been developed for professional talent enrichment, undergraduate
institutions available in dedicated RM200 • Establishment of a
and postgraduate qualifications, research and thought leadership Malaysia’s Islamic dedicated Shariah
million fund
in Islamic finance and Shariah. financial system to support Islamic research centre in
• Comprehensive and finance talent Islamic finance
Malaysia also has the edge in attracting world-class Islamic finance progressive Islamic development
financial system
talent to participate in its Islamic financial industry through the
creates dynamic Attracting and
MIFC initiative by providing withholding tax exemption and learning opportunities Retaining Talent
facilitative immigration policies to Islamic finance expatriates. for practitioners • Withholding
tax exemption
Malaysia has also taken the initiative to promote greater advancement • Facilitative
of the global Islamic financial industry. The Central Bank of Malaysia immigration policies
• Flexible
(Bank Negara Malaysia) has established an endowment fund
employment rules
amounting to RM200 million with the primary objective of enhancing
the knowledge, research, talent, and intellectual discourse in the field
of Shariah and Islamic finance.
Malaysia provides a conducive environment for career
progression in Islamic finance

14 Human Capital Development The Centre for Human Capital Development in Islamic Finance 15
Excellent Working Environment
for Islamic Finance Experts
Malaysia has put in place a strong foundation and the right pre-
requisites to become an international Islamic financial hub. With more
than 30 years of experience and the diversity of financial institutions
available in Malaysia, huge job and learning experience opportunities
are created. It is estimated the industry would require some 12,000
practitioners for the Islamic financial industry by 20101.
In addition, Malaysia offers additional advantages such as strong
economic growth and international trade; an English-proficient,
IT-savvy workforce; a comparatively low cost of living amongst
established financial centres; modern physical infrastructure that
provides for a comfortable living environment; strong support from
the Government as well as international connectivity and an established
communications infrastructure.
Incentives and Facilitative Policies
Talent Enrichment
• Tax relief
RM5,000 tax relief for fees on courses at institutions of higher
learning in Malaysia for Islamic finance studies is provided to
Malaysia-resident individuals.
• Establishment of RM200 million fund to support the
development of Shariah and Islamic finance talent.
The Fund for Shariah Scholars in Islamic Finance was
established in 2006 with the following objectives:
-To enhance knowledge, research, talent, and
intellectual discourse in the field of Islamic finance.
16 Human Capital Development
- To build a dynamic pool of experts in the areas of Islamic
banking, takaful and Islamic capital market.
- To finance periodic dialogues amongst Shariah
scholars to establish better interaction between Shariah
scholars and industry practitioners.
Attracting and Retaining Talent
Under the MIFC initiative, Malaysia offers an attractive package
to attract greater participation of foreign talents in Islamic finance
to extend their expertise to Malaysia.
• Withholding tax exemption
Withholding tax exemption is given on income received
by non-resident experts in Islamic finance.
• Facilitative immigration policies
Fast and easy immigration approval through the “Green Lane”,
established for expatriates in Islamic finance and their immediate
family members.
Details of the application process can be obtained from www.mifc.com
• Flexible employment rules
No employment requirements are imposed, in terms of number
and field of expertise, for the Islamic finance experts to be employed
by the International Islamic Banks (IIB), International Takaful
Operators (ITO), International Currency Business Units (ICBU),
and Islamic Fund Management Company.
1 
Source: Bank Negara Malaysia projections,
as reported in Bernama (June 15, 2008)
The Centre for Human Capital Development in Islamic Finance 17
Comprehensive Institutions
to Meet All Level Talent Needs
Malaysia has a comprehensive human capital development environment
consisting of leading educational institutions which are geared towards
meeting the talent needs of all levels of Islamic finance practitioners.
IBFIM is an industry-owned institute dedicated to
producing well-trained, highly competent personnel
IBFIM and executives with the required talent in Islamic
finance.
ICLIF provides leadership development programmes for
ICLIF senior executives from financial institutions and business
corporations in and outside of Malaysia through a series
of interactive workshops and work-related projects.
Offering the world’s first Chartered Islamic Finance
Professional qualification, INCEIF aims to build a globally
INCEIF competitive and sustainable source of Islamic finance
professionals and Shariah scholars. INCEIF’s other
notable courses include its specialised Masters and
PhD in Islamic finance.
ISRA’s role is to promote applied research in the area
ISRA of Shariah and Islamic finance, and act as a repository
of knowledge for Shariah views or fatwas in undertaking
studies on contemporary issues in Islamic finance.
SIDC is a training and development provider focusing
SIDC on the Islamic Capital Market. SIDC educates investors,
develops and trains Malaysian capital market inter-
mediaries and grooms future market regulators.
18 Human Capital Development
Islamic Banking and Finance Institute Malaysia (IBFIM)
IBFIM is an industry-owned institute dedicated to producing well-
trained, high-competence personnel and executives with the required
talent in Islamic finance. Since 2001, IBFIM has been focusing on
holistic, effective approaches to ensure strategic goals are achieved
through result-oriented services.
IBFIM’s objective is to be a leading international human capital and
business developer in Islamic finance, and to uphold the principles
of Shariah in prospering the sector by developing and conducting
Shariah-based training programmes. Courses offered also provide
apprenticeship for trainers and advisers and are meant to provide
customised industry and business training.
Potential candidates may choose from the following courses offered
by IBFIM:
Course Overview
i-Series Programmes • IBFIM i-Series programmes are offered to individuals
who wish to seize a career opportunity and establish
a solid foundation in today’s expanding Islamic finance
business. The programme caters to Islamic finance
professionals who wish to deepen their knowledge and
technical know-how in specific areas and functions of
Islamic banking, takaful and Islamic capital market. It
incorporates both theoretical and practical aspects of
relevant Islamic finance disciplines. The IBFIM i-Series
comprises various short-term skills- or competency-
based programmes.
The Centre for Human Capital Development in Islamic Finance 19
Course Overview Course Overview

i-Series Programmes • The IBFIM i-Series programmes can also be provided Shariah Scholars • SiSIP is specifically designed for Shariah officers and
(cont.) in-house and exclusively tailor-made to the specific Introduction Program advisers serving the Islamic financial industry. The aim
needs of any company/organisation. (SiSIP) of the programme is to give exposure to the opera-
tional aspect of Islamic finance. This programme covers
both the theoretical and practical aspects of Shariah
Certified Credit • Targeted at executives in Islamic banking institutions in Islamic banking, takaful and Islamic capital market
Professional - Islamic or executives assigned to Islamic banking windows operations.
(CCP-i) of conventional banks, the course is formulated to
enhance existing CCP holders with the necessary skills • Endorsed by Bank Negara Malaysia, this programme
to carry out similar credit functions in Islamic banking. is necessary for all Shariah officers and advisers who
wish to practise Islamic finance in their respective
• CCP-i covers the following areas: institutions.
- Principles and philosophy of the Islamic financial
system
- Shariah issues and Shariah compliance for
financing products
- Types of contracts, products and documentation
applicable in Islamic finance operations
- Approaches to rescheduling and restructuring
of Islamic financing products
IBFIM also provides business advisory and consultancy services
with regard to the implementation and offering of Islamic financial
Islamic Financial • IFP is designed specially for professionals and
products and services, particularly in relation to Shariah and regulatory
Planner (IFP) executives serving the retail segment of the market,
in preparing candidates to be competent financial frameworks. Specifically, IBFIM provides advisory services in the
planners. following areas:

• The 6-module exam-based programme comprises • Product, Policies & Procedural Manual Development
the following:
- Fundamentals of Islamic Financial Planning
• Product Research & Development
- Risk Management and Takaful Planning • Customised In-house Training Programs
- Islamic Investment Planning
- Zakat (Tithe) and Tax Planning
- Islamic Estate, Retirement and Waqf Planning
- Financial Plan Construction and Professional
Responsibilities

20 Human Capital Development The Centre for Human Capital Development in Islamic Finance 21

International Centre for Leadership in Finance (ICLIF)
Endowed as a non-profit corporation by Bank Negara Malaysia in
October 2003, ICLIF provides leadership development programmes for
senior executives from financial institutions and business corporations
in and outside of Malaysia through a series of interactive workshops
and work-related projects.
Strategically, ICLIF focuses on developing leadership skills and
competencies in middle and senior managers from financial
institutions, in the private and Government sectors, within
Malaysia and the region.
Among the courses at ICLIF that are available to the public:
Course Overview
Global Leadership • The 5-week long programme spread over 5 months is
Development targeted at CEOs and high potential senior executives
Programme (GLDP) from Malaysia and the Asia Pacific region.
• Participants have the opportunity to discuss current
leadership and management issues with the brightest
academic minds and leading industry practitioners.
• Prominent partners of ICLIF include Harvard
Business School, Stanford Graduate School of Business,
Massachusetts Institute of Technology (MIT/Sloan),
University of California Los Angeles (UCLA) and
University of California at Berkeley (UC Berkeley).
22 Human Capital Development
Course Overview
High Performers’ • This comprehensive 3-week programme contains
Leadership a wide selection of leadership development content
Development channelled through a series of interactive workshops
Programme (HPLDP) and work-related projects.
• The programme enables participants to position
ethical leadership as a driving force for organisational
success, apply an integrated approach to strategic
planning, develop their capacity for enhanced
decision making, apply participative management
to their leadership style, apply creative thinking and
innovation techniques, as well as to apply appropriate
communications skills to build relationships in
achieving results and developing a broad sense of
leadership attributes.
• The programme is divided into 3 stages held over
16 days in Kuala Lumpur and Perth, Australia.
Scenario Thinking • This interactive and hands-on workshop is aimed at
and Planning enhancing the strategic capabilities of Directors, CEOs
and senior executives who are responsible for strategy
development, environmental scanning and business
innovation to prepare and secure the long-term
viability of their organisations.
• The course is structured to enable participants to
explore contexts, develop and analyse scenarios, and
come up with strategies to ensure dynamism and
competitiveness of their organisations.
Leading • This 4-day programme is designed for CEOs and
Transformation senior executives in both the financial and non-
financial industries. It is aimed at those who can
benefit from an in-depth assessment process that
The Centre for Human Capital Development in Islamic Finance 23
Course Overview
Leading helps them become more aware of the factors
Transformation affecting their individual performance and
(cont.) organisational effectiveness.
• The course is designed to enable participants to
identify their leadership challenges associated with
the economic and social transformations occurring
within Malaysia and the region; review organisational
capability requirements necessary to effectively deal
with challenges; clarify leadership strengths and
development needs in relation to the challenges and
organisational requirements; take a broad, systemic
view in the design and implementation of effective
organisational change; enhance self-awareness on the
impact of leadership style; and create an individual
leadership development plan for leading their
organisation through the change process.
Strategic Talent • This 3-day course aims to provide Middle Level
Management Management and Functional Leaders with a
pragmatic approach towards Talent Management.
• The programme will enable participants to understand
the dimensions of Talent Management, apply the
means and ways (using relevant templates) to decode
strategy into people requirements, identify emerging
traits of future leaders, and design an Action Plan
to close the gaps between strategic needs and the
quality of their people.
Directors Education • This is a unique, 3-day programme that brings
Programme together a selected group of Chairmen and Board
members from across industries in Malaysia to discuss
and reflect on current Corporate Governance issues in
the world and their relevance and applicability to Asia.
24 Human Capital Development
Course Overview
Directors Education • The forum provides a truly international comparative
Programme perspective and experience, balancing attention
(cont.) to the compliance and supportive roles of the Board,
and focuses on the process and culture of the Board
and the leverage factors for its improvement.
Transformational • This dialogue-based workshop provides variations
Coaching on coaching interactions and feedback analyses to
fit any scenarios.
• Participants will be able to relate how coaching fits
into contemporary leadership models and why it is
an important leadership skill, define what it means
to become an effective coach and apply the learnings
from the programme to the workplace, as well as
interpret the critical distinctions between criticism,
feedback and coaching.
Customised • Other than designing and delivering core programmes,
Programmes ICLIF also custom-builds programmes to address
the specific leadership concerns of organisations,
associations or sectors, based on proven and relevant
leadership competencies.
• Among the organisations for whom ICLIF has
tailor-made programmes:
- Indian Railways
- AKEPT (Higher Education Leadership Academy)
• The 34th International Senior Police Officers
Command Course (SPOCC)
The Centre for Human Capital Development in Islamic Finance 25

International Centre for Education in Islamic Finance (INCEIF)
Based in the heart of the capital, Kuala Lumpur, INCEIF was established
in March 2006. Although a relatively new entrant to Malaysia’s vibrant
tertiary education sector, the university has students from 56 countries
from all over the world including the Middle East, United Kingdom,
United States, Africa and Asia. INCEIF offers both practical and academic
training programmes in Islamic finance aimed at enhancing the Islamic
financial industry globally.
INCEIF is committed towards elevating and advancing Islamic financial
knowledge. INCEIF intends to serve as a nucleus for collaboration
with other Islamic financial education centres and develop future
industry leaders. The prestigious programmes available are aimed
at creating awareness on Islamic finance as well as to providing
Islamic finance advice.
Listed below are among the main programmes offered at INCEIF:
Course Overview
Chartered Islamic • The professional qualification combines both practical
Finance Professional and theoretical aspects of Islamic finance to provide
(CIFP) a holistic learning experience of exceptional quality.
The main mode of delivery is through online learning
and the language of delivery is English.
26 Human Capital Development
Course Overview
Chartered Islamic • With more than 1000 local and international students,
Finance Professional the programme is structured into 3 parts:
(CIFP)
(cont.) Part I: Building Knowledge
  This covers the basics of Islamic finance theory.
Candidates will be introduced to subjects such as
Theory and Ethics of Islamic Economics and Finance,
Islamic Financial Institutions and Markets, Applied
Shariah in Financial Transactions, and Wealth Planning
and Management.
Part II: Building Skills
Part II aims to equip candidates with the required
skills necessary in handling operational issues and
Islamic financial transactions such as structuring
corporate financing and issuing Islamic securities.
 At this stage, candidates will have the option of
either specialising in Islamic banking or takaful.
Areas of study would include subjects like Structuring
Financing Requirements, Shariah Compliance and
Audit, Deposits and Financing Practices of Islamic
Banks, and Operational Aspects of Takaful.
 Part III: Building Competency and Experience
The final part of the programme involves an articleship
in which various activities will be designed to provide
candidates with practical experience in the Islamic
financial services industry.
 Candidates will be guided through an assessment
process while training at pre-approved participating
Islamic financial institutions or organisations in
problem solving, restructuring, management, etc.
The Centre for Human Capital Development in Islamic Finance 27
Course Overview Course Overview

Masters in Islamic • This programme offers training in the key areas
Finance of Islamic economics, finance and Shariah in both
theoretical and applied aspects to provide candidates
with a comprehensive understanding of the economic,
financial and legal environments.
MSc in Investment • The course also offers a 3-month opportunity to be
Banking & Islamic based in Malaysia to learn directly from Islamic finance
Finance professionals. Scope of learning includes academic
(cont.) studies, restructuring exercise, product conversion as
well as Shariah and audit compliance testing.

• The Masters can either be completed solely by • Candidates will be qualified to join specialist Islamic
Coursework, or a combination of Coursework financial institutions as investment managers and
and a Dissertation. finance divisions of multinational companies.

• Course participants will also cover the materials

PhD in Islamic Finance
• Designed for candidates interested in pursuing necessary to qualify for INCEIF’s Chartered Islamic
research in Islamic finance, the course will enable Finance Professional (CIFP).
candidates to develop the technical and intellectual
capabilities to pursue research across a broad range
of areas in Islamic finance.

• As this PhD is industry-driven and based on strong

academic fundamentals, candidates with industry
exposure and experience are encouraged to apply.

MSc in Investment • This course is a collaboration with International

Banking & Islamic Capital Market Association, Reading University, UK.
Finance
• The first UK-based course to use Islamic material
taught by Islamic specialists and geared towards both
theoretical and practical applications of knowledge
learnt.

28 Human Capital Development The Centre for Human Capital Development in Islamic Finance 29
International Shariah Research Academy for Islamic Finance (ISRA)
ISRA is a one-of-a-kind research academy in the world. Established
within INCEIF in March 2008, ISRA conducts applied research in the
area of Shariah and Islamic finance. It acts as a repository of knowledge
for Shariah views or fatwas and undertakes studies on contemporary
issues in the Islamic financial industry.
ISRA will contribute towards strengthening human capital
development in the areas of Shariah and providing a platform for
stakeholders’ engagement amongst practitioners, scholars, regulators,
and academicians via research and dialogues, both domestically and
internationally. Through pioneering research activities and vigorous
intellectual dialogues, ISRA will encourage innovation and dynamism
into new boundaries of Islamic finance; and via its research and
dialogues, mutual respect and recognition would emerge within
the global Islamic financial community.
30 Human Capital Development
Securities Industry Development Corporation (SIDC)
SIDC has been a leading capital markets education, training and
information resource provider in the ASEAN region since 1994.
SIDC develops and facilitates training both locally and internationally
through a range of programmes and activities, including conferences,
seminars and workshops, supported by computer-based learning.
Together with the Securities Commission, it develops examination
questions and modules, and holds examinations as part of the
licensing regimen for Malaysian capital market intermediaries.
SIDC aims to create investor awareness; raise professional standards;
and enhance skills of Malaysian capital market participants as well as
training and developing Malaysian and emerging market regulators.
It is also responsible for building Shariah capacity in the capital
markets, and the harmonisation of rulings (through the Islamic Capital
Market Professional Development Programme).
SIDC offers a mixed approach to developing the human capital aspect
of the financial markets. Some of the courses offered by SIDC are:
Course Overview
Industry Transformation • The ITI Programme is tailored to representatives from
Initiative (ITI) companies in dealing, fund management, investments,
Programme and futures broking/management/trading.
The Centre for Human Capital Development in Islamic Finance 31
Course Overview
Industry Transformation • The course covers the following areas in detail:
Initiative (ITI) - Equity Market
Programme - Derivatives and Alternative Investments
(cont.) - Debt Capital Market
- Islamic Capital Market
- Financial Planning and Portfolio Management
Licensing Examinations • These examinations are catered to those seeking
to be licensed by the SC or those seeking to submit
an application for approval to the SC to hold a position
as key management of a Capital Markets Services
Licence (CMSL) Holder, Compliance Officer or a
Local Participant.
• This ensures a minimum standard of competency
for intermediaries in the Malaysian capital market.
The 11 modules of examination being offered are:
- Stock Market and Securities Law
- Financial Statement Analysis and Asset Valuation
- Funds Management Regulation
- Asset and Funds Management
- Fundamentals of Compliance
- Investment Management and Corporate Finance
- Futures & Options
- Investment Advisory (Rules & Regulations)
- Futures and Options (Rules & Regulations)
- Securities and Derivatives Trading
(Rules & Regulations)
- Securities and Derivatives Trading
(Products and Analysis)
32 Human Capital Development
Course Overview
Continuing Professional • CPE is a programme for educating market professionals
Education (CPE) and is mandatory for all licensed persons.
• This programme applies to all holders of Capital
Markets Services Representative’s Licence.
Islamic Markets • A five-day course sponsored by the Economic Planning
Programme (IMP) Unit’s Malaysian Technical Cooperation Programme
(MTCP). This is an annual event, featuring highly
interactive delivery with internationally recognised
Islamic finance experts with hands-on experience
in creating Islamic financial instruments.
Advance Business • A premier programme conducted annually, jointly
Management organised with the International Institute of Manage-
Programme for ment, Lausanne, Switzerland, the leading executive
Senior Leaders education business school; bringing its top faculty
in Capital Market to Malaysia to foster world-class human capital for
the Malaysian financial services industry.
• The programme benchmarks global best practices and
top investment opportunities for continued business
success, and provides a platform for the financial
institutions and the regulators to come together to
share knowledge and experiences, discuss real world
issues and identify implementable business solutions.
The Centre for Human Capital Development in Islamic Finance 33
Course Overview

International Company • A six-day residential programme in collaboration
Directors Course with the Australian Institute of Company Directors
(AICD), one of the world’s most established director
institutes, that helps directors understand their roles
and responsibilities in the global context.
The Malaysian education sector also recognises the importance of
Islamic finance knowledge. Currently, there are six institutions of higher
learning in Malaysia which offer undergraduate and postgraduate
programmes in finance with a specialisation in Islamic finance.

• It is a comprehensive course of ten modules covering

all aspects of a director’s role in the international
environment. At its conclusion, participants are given
the option to undertake assessment leading to the
award of the International Company Directors Course
Diploma.

34 Human Capital Development The Centre for Human Capital Development in Islamic Finance 35
Factsheet on Malaysia
Factsheet on Malaysia

General
Information1
Capital Exchange Rate
Kuala Lumpur USD 1 = 3.20 Ringgit
(May 2008)
Surface Area
330,000 sq km Climate
Tropical
Official Language
Bahasa Malaysia
M A L AY S I A
Time Zone
GMT +8 hours
Business Languages US Pacific Standard
Bahasa Malaysia Time +16 hours KUALA LUMPUR
and English
Government
Population Constitutional Monarchy
27.17 million (2007)

Religion
53% Muslim
17% Buddhist
12% Taoist
8% Christian
8% Hindu
2
2% Tribal 2007
GDP Per Capita Income Labour Force Total Export (F.O.B.)
RM504.41 billion RM23,140 10.9 million RM605.15 billion
USD157.62 billion USD7,231 USD189.11 billion
1 
Source: Malaysian Industrial
Development Authority

GDP Growth Inflation Rate Unemployment Rate Total Import (C.I.F.)

2
Source: 6.3% 2.0% 3.2% RM504.81 billion
Department of Statistics, USD157.75 billion
Malaysia

38 Human Capital Development Factsheet on Malaysia 39

 A Snapshot of Malaysia’s Education Sector

Malaysia is a well established hub for

educational excellence in Southeast Asia.
The tertiary education sector in particular,
has experienced impressive growth rates
in the past decade, and is currently home to
20 public universities (2 of which are Islamic
universities), 16 private universities, 4 foreign
university branch campuses, and more than
500 other higher education institutions1.

At the pre-tertiary level, there are currently

32 international schools and 14 expatriate
schools which mainly adopt curricula from
the American, Australian and British systems.
There are also other international schools
1 that cater to the French, German, Japanese,
Source:
Ministry of Higher Taiwanese, Arabic and Turkish education
Education Malaysia systems2a,2b.

2a
Source: StudyMalaysia.com As at year end 2007, there was a total of 65,000
– Excellence in the
Education Sector
students enrolled in international schools and
both private and public institutions of higher
2b
Source: moe.gov.my education, an increase of more than 30%
(Ministry of Education compared to the year 2006.
Malaysia)

3 
Source: Bernama, “Malaysia Malaysia’s foreign student population is
To Raise Intake Of Foreign expected to surpass 100,000 by 20103.
Students To 100,000”
(1 October 2007)

40 Human Capital Development

 Frequently Asked Questions

42 Human Capital Development 43

Frequently Asked Questions

1. What is the MIFC initiative?
The MIFC, or in full, Malaysia International Islamic Financial Centre,
is an initiative to position Malaysia as an international Islamic
financial hub.
On 14 August 2006, the Government launched the MIFC initiative
to strengthen Malaysia’s position as a centre of excellence in Islamic
finance. The mission is to create a vibrant, innovative and competitive
Islamic financial services industry, supported by high calibre human
talent, world-class infrastructure and best international standards.
Under the MIFC initiative, Malaysia is positioned as a centre for:
• Sukuk Origination
• Islamic Fund and Wealth Management
• International Islamic Banking
• International Takaful
• Human Capital Development
2. What are the benefits under the MIFC
initiative?
Various incentives and measures have been introduced to promote
the MIFC initiative. Amongst the key incentives are:
• Issuance of licences to conduct foreign currency banking and
takaful businesses known as International Islamic Bank (IIB) and
International Takaful Operator (ITO), with a 10-year income tax
exemption until the assessment year 2016.
• Islamic fund management companies are given a 10-year
income tax exemption until the assessment year 2016 on all fees
received for Islamic fund management activities.
• Up to 100% foreign equity ownership in the establishment of IIB, ITO
and Islamic Fund Management Company.
• L iberalisation of the foreign exchange administration rules to allow
the issuance of foreign currency sukuk in Malaysia by various types
of foreign and domestic institutions, and free flow of funds in and
out of the country.

• E stablishment of International Currency Business Unit (ICBU)

by domestic Islamic banks, takaful and retakaful operators
to conduct foreign currency business and enjoy similar tax
exemption as that given to IIB and ITO.

• I IB, ITO and Islamic Fund Management Company entities can be

located anywhere in Malaysia.

44 Human Capital Development Frequently Asked Questions 45

3. Who oversees the MIFC initiative?
MIFC itself is not a legal entity but an initiative to undertake foreign
currency business which can be conducted by Islamic financial
institutions anywhere in Malaysia. The international Islamic banks and
international takaful operators are regulated by the Central Bank of
Malaysia (Bank Negara Malaysia) whilst the Islamic fund management
companies are regulated by the Securities Commission of Malaysia.
Under the MIFC governance structure, the MIFC Executive
Committee was formed to review/provide high-level policy
direction towards ensuring an efficient coordination and effective
implementation of the MIFC initiative. The MIFC Executive Committee
comprises a high-level group of 28 top officials from key ministries,
Government departments and agencies, financial regulators and
financial institutions.
On the whole, the strategic promotion of the MIFC is undertaken by
the concerted efforts of Bank Negara Malaysia, Securities Commission,
Bursa Malaysia and other relevant institutions from the public and
private sectors.
5. What is the role of the MIFC Secretariat?
The MIFC Secretariat functions as the single contact point in facilitating
the MIFC initiative implementation which includes among others:
• Facilitate licensing applications for IIB, ITO and the Islamic fund
management company.
• Facilitate immigration-related matters for foreign Islamic finance
professionals, including their spouse and children.
• Facilitate foreign equity ownership and tax-related matters.
• Liaison for issuers and investors.

Membership into the MIFC Executive Committee is based on 6. How can I contact the MIFC Secretariat?
appointment by the Prime Minister of Malaysia, and chaired by the
Governor of Bank Negara Malaysia. MIFC Secretariat
Islamic Banking and Takaful Department
The MIFC Exco is supported by the MIFC Promotions Unit and the Bank Negara Malaysia
MIFC Secretariat. Jalan Dato’ Onn
50480 Kuala Lumpur
4. What is the role of the MIFC Promotions Unit?
Tel: +603 2692 3481
Fax: +603 2693 3826
The MIFC Promotions Unit is established within Bank Negara Malaysia
E-mail: mifc@bnm.gov.my
to develop and implement a comprehensive MIFC promotional
Web: www.mifc.com
strategy which includes mass marketing and targeted road shows.

46 Human Capital Development Frequently Asked Questions 47

7. What is the progress in Malaysia on human
capital development to address the shortage
of expertise and skilful personnel in Islamic
finance?
Malaysia is very committed in its effort to develop human capital in
Islamic finance. A comprehensive approach has been taken to ensure
the continual enhancement and availability of human capital and
intellectual capabilities.
Some of the initiatives that have been taken include:
• Establish synergistic partnerships between the industry and
institutions of higher learning to produce sufficient numbers of
graduates with the relevant skills to meet all level talent needs
which include industrial attachments or internship opportunities
at financial institutions.
• Financial institutions, in collaboration with Bank Negara Malaysia,
have introduced the Financial Sector Talent Enrichment Programme
which provides a 1-year intensive technical training in Islamic
finance. The programme encompasses simulations, workshops and
case studies, and on-the-job training through internships with the
financial institutions.
• Flexibility to financial institutions to appoint expatriates in areas
where there is an absence or scarcity of local talent.
48 Human Capital Development
• Fast and easy immigration approval through the “Green Lane”
accorded by the Immigration Department for expatriates and their
immediate family members.
• Established the International Centre for Education in Islamic Finance
(INCEIF), aimed at making Malaysia the leading centre of excellence
for education in Islamic finance. INCEIF offers the world’s first
professional certification programme in Islamic finance.
• Established the International Centre for Leadership in Finance (ICLIF)
to play a leading role in developing new dimensions of leadership
capability.
• Establishment of the International Shariah Research Academy in
Islamic Finance (ISRA) within INCEIF to promote applied research
in Shariah and Islamic finance.
• Bank Negara Malaysia has set up a RM200 million (USD62.5 million)
Fund for Shariah Scholars in Islamic Finance to provide scholarships
and Shariah research grants in Islamic finance, and to organise
international and regional Shariah scholars’ dialogues to exchange
views and insights on Shariah application in Islamic finance.
Frequently Asked Questions 49
8. Why study Islamic finance? • Courses on Islamic finance encapsulate the best of theory and
practical applications of Shariah to provide for a good, professional
and educational training ground.
The tremendous growth in Islamic finance has resulted in an
increase in the demand for talent competent in Shariah and Islamic
• English is widely spoken and is Malaysia’s business language.
finance. With global Islamic assets growing at annual rates of 15%
to 20%, Islamic finance offers a wealth of opportunities for financial
• Tuition and living costs are one of the most affordable in the
institutions wishing to tap into this sector. A pool of qualified Islamic
Asia Pacific region.
finance practitioners is therefore needed globally, especially in
structuring innovative Islamic financial products.
• Getting a student visa is hassle free.

9. What can Malaysia offer if I want to study • Opportunities for students to undertake part-time jobs as there is
Islamic finance in Malaysia? no requirement for a working visa.

Malaysia has been recognised as a leader in Islamic finance. With more • Malaysia is the perfect gateway for students wishing to travel
than 30 years of experience in this sector, we have developed a large and explore the delights of Asia.
and diverse pool of Islamic finance talents.
• Malaysia’s large international community and multicultural
Malaysia offers the following: population.
• World’s first to offer a professional certification in Islamic finance
– Chartered Islamic Finance Professional (CIFP) • Islam is the official religion, however other religions and faiths
flourish and can be freely practised.
• Good exposure to Malaysia’s wide range of innovative financial
instruments. • Malaysia’s stable political environment ensures continued prosperity
and socio-economic growth.
• Excellent infrastructure to undertake applied Shariah research
and dialogues, complemented by the availability of research
grants and scholarships.

50 Human Capital Development Frequently Asked Questions 51

10. What are the programmes offered by INCEIF? Some of the institutions that offer courses/studies in Islamic
finance include:
• Islamic Banking and Finance Institute Malaysia (IBFIM)
INCEIF offers the world’s first professional certification in Islamic
• International Centre for Leadership in Finance (ICLIF)
finance – Chartered Islamic Finance Professional (CIFP). The CIFP
• International Centre for Education in Islamic Finance (INCEIF)
programme is aimed at producing high caliber professionals with
• Securities Industry Development Corporation (SIDC)
the necessary technical skills and knowledge in Islamic finance.
• Six institutions of higher learning in Malaysia also offer
This programme is delivered by industry specialists and renowned
undergraduate and postgraduate programmes in finance with
scholars to provide a highly qualified teaching faculty to ensure
a specialisation in Islamic finance. The six universities are:
a holistic approach of academic learning and financial industry
- International Islamic University Malaysia (IIUM)
practical experience. INCEIF also offers specialised Masters and PhD
- Universiti Darul Iman Malaysia (UDM)
programmes in Islamic finance.
- Universiti Malaysia Sabah (UMS)
- Universiti Sains Islam Malaysia (USIM)
11. Which institutions offer courses/studies - Universiti Teknologi MARA
in Islamic finance? - Universiti Utara Malaysia (UUM)

Malaysia provides a comprehensive human capital development

infrastructure. Courses range from short-term to long-term
programmes, covering the whole spectrum of Islamic finance.

52 Human Capital Development Frequently Asked Questions 53

Contact Us

MIFC Secretariat IBFIM ICLIF INCEIF ISRA SIDC

Islamic Banking and
Takaful Department
Bank Negara Malaysia
Jalan Dato’ Onn
50480 Kuala Lumpur
Malaysia
Tel +603 2692 3481
Fax +603 2693 3826
E-mail mifc@bnm.gov.my
Web www.mifc.com
Islamic Banking and
Finance Institute Malaysia
3rd Floor, Dataran
Kewangan Darul Takaful
Jalan Sultan Sulaiman
50000 Kuala Lumpur
Malaysia
Tel +603 2031 1010
Fax +603 2031 9191
E-mail info@ibfim.com
Web www.ibfim.com
International Centre for International Centre International Shariah Securities Industry
Leadership in Finance for Education in Research Academy Development Corporation
Islamic Finance for Islamic Finance
Level 24, Main Block 3, Persiaran Bukit Kiara
Dataran Kewangan Second Floor, Second Floor, Bukit Kiara
Darul Takaful Annexe Block Annexe Block 50490 Kuala Lumpur
4 Jalan Sultan Sulaiman Menara Tun Razak Menara Tun Razak Malaysia
50000 Kuala Lumpur (Menara Tradewinds) (Menara Tradewinds)
Malaysia Jalan Raja Laut Jalan Raja Laut Tel +603 6204 8000
50350 Kuala Lumpur 50350 Kuala Lumpur Fax +603 6201 8008
Tel +603 2263 3888 Malaysia Malaysia E-mail sidc@sidc.com.my
Fax +603 2263 3855 Web www.sidc.com.my
E-mail enquiries@iclif.org Tel +603 2781 4000 Tel +603 2781 4000
Web www.iclif.org Fax +603 2692 4094 Fax +603 2692 4094
E-mail info@inceif.org E-mail info@inceif.org
Web www.inceif.org Web www.inceif.org

For a complete list of Malaysian institutions of higher learning offering finance

programmes with a specialisation in Islamic finance, please vist www.mifc.com

54 Human Capital Development Contact Us 55