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Malaysia aims for higher Islamic market share

Malaysia aims for higher Islamic market share

(25 February 2013 – Malaysia) Malaysia is aiming to reform its Islamic banking industry, with a goal to double its market share to 40 percent. Malaysia is implementing regulatory reforms to help its Islamic banking industry expand further. The government originally aimed for 20 percent market share for Islamic banks by 2010.

The Islamic banking sector, however, has had difficulty maintaining this goal despite double-digit growth in both lending and assets. Islamic banks have added RM111.6 billion (A$347 million) in assets over the past two years, bringing their share of total banking assets in Malaysia to 19.6 percent in December 2012.

Their share of loan business hit 20 percent in January 2012 and was at 21.3 percent last December.

Malaysia aims to boost the market share for Islamic banking to 40 percent by 2020. It also wants to make the industry more international.

To achieve this, regulators introduced new rules over the past two years and are preparing to release a brand-new legal framework for Islamic finance this year.
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