KUALA LUMPUR: Malaysia is intensifying its efforts to enhance industry competitiveness, develop expertise, and foster shariah cooperation, with a focus on positioning itself as a global gateway for the Islamic financial market in Asia and among Organisation of Islamic Cooperation (OIC) member countries. This strategic direction is part of the Financial Sector Plan 2022-2026.
According to BERNAMA News Agency, Deputy Finance Minister Lim Hui Ying highlighted ongoing initiatives supported by Bank Negara Malaysia (BNM) and industry players to aid countries interested in building Islamic financial networks. This includes the sharing of Islamic financial knowledge through programs organized by the International Centre for Education in Islamic Finance (INCEIF University) and the Islamic Banking and Finance Institute Malaysia (IBFIM) for Uganda and the Philippines.
Lim also emphasized the active expansion of Malaysian Islamic banking and takaful industry players into new markets, especially within the regional mark
et. She noted that the Malaysian International Islamic Finance Centre (MIFC) Leadership Council had signed a memorandum of collaboration with Indonesia, Hong Kong, Turkiye, and the United Kingdom in May of the previous year. This agreement focuses on innovation in Islamic financial products, encourages cross-border trade and financial activities, and promotes capacity building and education.
Additionally, Lim mentioned a specific business forum between Malaysian and UK industry players aimed at promoting green investment through Islamic financial solutions.
In response to an inquiry about Labuan’s tax-free status, Lim confirmed that its status as a tax-free island remains intact. However, she clarified that taxes on cigarette and tobacco products were reimposed starting July 1, 2021, as part of efforts to curb smuggling and address significant tax revenue leakages. Lim noted that since the implementation of stricter controls on the importation of these products, incidents of illegal cigarettes in the local
market have decreased by 9.4 percent from 2020 to September 2024, indicating a reduction in tax revenue leakage.