Malaysia: Malaysia is well-positioned to develop the Islamic finance market space and be a hub for liquidity pooling, supported by growing demand in Islamic secure funding, said Affin Bank executive director of group treasury Hanif Ghulam. He noted that the Islamic secure funding, specifically the Malaysian Government Investment Issue (MGII) programme, has reached RM42 billion in 2024.

According to BERNAMA News Agency, the Islamic financial market has developed over the last few years, especially with the central bank’s initiatives to ensure market stability. Hanif Ghulam highlighted that Malaysia has built the depth of liquidity in the Islamic financial space, positioning the country to respond to potential downside scenarios and seize opportunities in the market. He emphasized the availability of a wide array of products to cater to any risk in currencies and commodities.

Hanif also pointed out Malaysia’s potential in attracting investments through sustainable and environmental, social, and governance-related projects such as solar and hydroelectric. He stressed the importance of standardizing documentation, improving the legal framework, and easing entry and exit for investors to attract more foreign inflows into the Islamic capital market. Hanif, who is also the chairman of the Islamic Financial Market Subcommittee (IFMC), stated that well-planned and developed infrastructure in terms of documentation and access could potentially grow the market by twofold or threefold.