Malaysia can continue sharing Islamic finance experience with the world

Malaysia being a leader in Islamic finance can offer its experience and continue contributing to the global economy, said Prime Minister Datuk Seri Najib Razak.

"Malaysia is the leader not only in terms of the issuance of sukuk, but we also have the ecosystem that enables Islamic finance to thrive. We have a range of Shariah-compliant products," he told a press conference at the 11th World Islamic Economic Forum (WIEF) here, today.

Najib was responding to a question on how Malaysia's experience in Islamic finance could contribute to the global economy.

Najib cited another example about the leading institution for training, INCEIF (International Centre for Education in Islamic Finance), which was set up by Bank Negara Malaysia.

"More than 50 countries participate in INCEIF and the number is growing.

"That is the indication of what Malaysia can contribute to the global economy," he said.

Najib also said Islamic finance had gained a lot of traction.

"In Malaysia, more non-Muslims are using Islamic finance (products and services), indicating how widespread the support and acceptance of Islamic finance has been," he said.

Globally, he said a number of non-Muslim countries such as the United Kingdom, Hong Kong and Luxembourg, had launched sovereign sukuk especially after London hosted the WIEF.

He said ever since the global economic crisis of 2007-08, there was a sharp demand for alternative economic and business models, specifically for a financial model that reduced the level of speculation.

"A kind of genuine partnership (in Islamic finance), we share the risk, we share the profit.

"Interest rate should not be the basis of the cost of funding," he said.

"I am so glad that Malaysia is driving this, as part of our contribution to the global community towards achieving sustainable and equitable growth," he added.