KUALA LUMPUR: The economic crisis has opened an opportunity for Malaysia to attract funds from non-traditional sources including the Middle East, said the Deputy Prime Minister.
Tan Sri Muhyiddin Yassin said there was a huge potential for Islamic finance especially since more investors were seeking alternatives to conventional financial instruments.
“Given the more cautious sentiment amid the current adverse environment, more investors are turning to Islamic finance as a more stable and resilient alternative,” he said last night at the 2009 RAM League Awards presentation ceremony here.
The award gave recognition to top achievers and innovators in the Malaysian bond market.
The global Islamic assets, he added, was currently worth RM750bil and expected to exceed RM1tril by next year.
Malaysia, he said, was well poised as a competitive and attractive sukuk (Islamic bond) market.
“Last year, 60% of the world’s sukuk issuance came from the domestic capital market, underscoring Malaysia as the leader in the global sukuk market.
“Another RM6.4bil was issued in the first quarter of 2009,” he said, adding that Malaysia was fast becoming a regional hub for Islamic finance.
The establishment of Danajamin, the financial guarantee insurance company under the second stimulus package, he said, would ensure the continued flow of credit to businesses.
Meanwhile, a statement from Muhyiddin’s office said he would be making a three-day working visit to Paris, France on Monday.
The visit is aimed at enhancing co-operation in various fields particularly in education, training, research and development, and boosting bilateral ties.
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