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FINANCE
STRATEGY
clcl PIONEERS OF FINANCE
With a dynamic business environment, excellent infrastructure and a productive workforce, there’s no looking back for Malaysia’s finance sector.
YB Dato’ Seri Haji Ahmad Husni Bin Mohamad Hanadzlah
Minister of Finance
“Malaysia’s is a fast-growing economy with liberal market policies targeted to promote trade and industrial development. Taking the positives from the financial crisis, Malaysia opened up new vistas and the financial sector was liberalised to enhance its linkages with international economies and promote economic regional integration. Its economy also expanded to 10.1% in the first quarter of 2010, the highest quarterly growth since 2000. During this period, the manufacturing production index rebounded strongly to a record 15.2% in the first quarter of 2009, and exports posted a robust growth of 30.8% in the first quarter of 2010,” says Malaysia’s Minister of Finance, YB Dato’ Seri Haji Ahmad
Husni Bin Mohamad Hanadzlah.
Malaysia is one of
the most developed economies among the newly industrialising Asian countries.
INVESTMENTS ALL THE WAY
Malaysia’s priority is to mobilise investments, particularly from the GCC, to unlock the potential needed to spur economic development. To give shape to these ideas, the government has introduced investment incentives, which include Foreign Ownership Rules that allow 100% foreign equity ownership in the International Islamic Bank (IIB) and International Takaful
provide tax exemption until 2016 on the income earned from international banking as well as takaful operations that are conducted in foreign currencies.
In addition, stamp duty exemption has been provided until 2016 on instruments pertaining to Islamic banking and takaful businesses
government has allowed institutions and operators to freely employ expatriates to participate in the Islamic financial system. Individuals can avail tax exemption on any profits paid out by an Islamic bank to non-resident depositors as well.
investors and issuers to Malaysia including the International Finance Corporation, the International Bank for Reconstruction and Development and Korea Exim Bank.
In the first half of 2010, Malaysia topped the list of sukuk-issuer counties, and, in terms of currency denomination, the ringgit was recorded as the number one currency in which sukuk was denominated on the domestic level. Aided by the Malaysia International Islamic Financial Centre (MIFC), Malaysia is strengthening its strategic collaboration with other financial centres worldwide.
“As Islamic finance gains international acceptance, key players in the global financial community are expanding their business. Malaysia, then, is a natural choice, given its comprehensive financial infrastructure, a wide range of innovative Islamic
financial products, favourable tax regime, liberal foreign exchange rules, dynamic legal and regulatory practices and strong shariah governance. In fact, Kuwait Finance House, Al Rajhi Banking and Investment Corporation and Asian Finance Bank Berhad (through Qatar Islamic Bank) have already commenced operations in Malaysia. Set up in 2008 in Dubai, Malaysian Investment Development Authority (MIDA) is entrusted with the responsibility of building ties with potential investors in the Middle East. In fact, MIDA’s regional office in Malaysia, which will facilitate economic activities between the GCC and ASEAN, is in the offing,” the Minister of Finance further added.
QUALITY ASSURED
In 2007, the Government of Malaysia set up a special task force, known as PEMUDAH, to facilitate business and to identify and propose measures to improve procedures and reduce
9th in Government Efficiency and one of the top 10 competitive countries in 2010 (as per World Competitiveness Yearbook [WCY]).
Malaysia aims to build bridges and further integrate with the global economy, with the support of its productive and educated workforce. Its persistent drive to develop and upgrade has resulted in one of the most developed infrastructure among the newly industrialising countries in Asia, with investors vouching on its success story as an economic powerhouse.
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