Malaysia has been a pioneer in the Islamic finance space. Bucking the trend of underperformance of much of the world in 2010, the Malaysian Islamic banking system remained resilient, with banks registering a profit. Total deposits for the Malaysian Islamic banking system increased from RM235.9bn in end 1999 to RM277.5bn a year later, according to the Bank Negara Malaysia.
Malaysia also remained the global leader in sukuk issuance, with a 66% market share or $94bn of total global sukuk outstanding as at end-2010. Shari’ah retail funds under management grew at a compound annual growth rate of nearly 26% over five years, according to Cerulli Associates. So what has been the key to Malaysian growth?……………………………………….Full Article: Source