Malaysia Has Good Base To Lead The World In Islamic Finance

Malaysia Has Good Base To Lead The World In Islamic Finance
By: Ramjit-->
KUALA LUMPUR, April 16 (Bernama) -- Malaysia has a good base to lead the world in integrating the Islamic financial system due to its full range of Islamic financing institutions, said Prof. Mervyn K. Lewis from the University of South Australia.A professor of banking and finance at the university's school of commerce, he said that Malaysia had good financial infrastructure and a full range of Islamic financing based institutions namely banks, takaful, investment fund and sukuk.Lewis was speaking to reporters after presenting a public lecture titled, "An Islamic Economic Perceptive On The Global Financial Crisis", organised by the Securities Commission (SC), here Thursday.Also present was the SC's chairman Datuk Seri Zarinah Anwar.Lewis is the first visiting scholar for the SC-University of Malaya (UM) Islamic finance collaboration agreement signed last year. The collaboration is to bring in eminent international scholars to be attached to UM.The visiting scholars will deliver a series of lecture, assist in academic research as well as provide consultation on dissertations and thesis by post graduate students.Lewis also stated that beside the full range of Islamic financing institutions, Malaysia also has a good regulatory system with Bank Negara Malaysia and the SC being knowledgeable in Islamic finance and sympathetic towards its development."A good attraction factor for Malaysia is that the country already has foreign banks operating here and has attracted Islamic finance," he said.According to Lewis, Malaysia is the largest individual market for investment funds in terms of issuance, adding the country had developed a very strong presence in Islamic finance."It has got a good overall mix of attributes for it to be a leading centre for Islamic finance. People are talking about two hubs of Islamic finance, in the Middle East and in Southeast Asia, where Malaysia is no doubt the leading player," he added.Lewis said that if the Islamic principle had been followed, the world would not have the subprime crisis and the credit crunch."But, it (Islamic finance) can't pull us out of the system now because it has already ensnared us. Even if everyone switched over to Islamic finance now, there is nothing that can be done about the current crisis," he added.Pointing out that the worst is not over for the global economy, Lewis said Malaysia is likely to see a hard landing this year because of the impact of trade due to the falling demand.-- BERNAMA