Islamic Banking in Malaysia

Islamic Banking in Malaysia

• First Islamic Bank Established: Bank Islam Malaysia Berhad, established in 1983, was the pioneer of Islamic banking in Malaysia.
• Availability of Islamic Banking Products: As of 2015, there were 16 banks in Malaysia that offered Islamic banking products, reflecting the growing financial sector focused on Shariah-compliant services.

National Shariah Advisory Council

• Purpose: The National Shariah Advisory Council in Malaysia provides guidance and advice on the interpretation and implementation of Shariah law in the banking and financial sector, ensuring compliance with Islamic principles.

Hajj Savings Initiative

• First Hajj Savings Institution: Lembaga Tabung Haji, established in 1969, was the first institution in Malaysia that allowed Muslims to save specifically for their Hajj pilgrimage expenses.

Islamic Banking Evolution

• Start of Islamic Banking Products: The offering of Islamic banking products and services by commercial banks, merchant banks, and finance companies in Malaysia began in 1993, marking a significant expansion of the financial landscape.

INCEIF Overview

• International Centre for Education in Islamic Finance (INCEIF): Established in 2005, INCEIF is a global educational institution dedicated to the study and promotion of Islamic finance, providing quality education and training to professionals in the field.