Malaysia International Islamic Finance Centre (MIFC)

Abstract

Malaysia is notable for its efforts in advancing its objective of establishing itself as a prominent hub for Islamic Finance on the global stage. The inception of this endeavor may be traced back to the year 1963, when there arose a necessity among Muslims residing in the nation to accumulate funds for the purpose of undertaking the Hajj pilgrimage. The concept of utilizing these savings in interest-free investment alternatives prompted the Malaysian government to build a comprehensive Islamic bank, so sowing the foundation of Islamic Finance in the nation. The advancement of Islamic finance within the nation has gained momentum due to the demands of the Muslim community and the endeavors of the government facilitated by a national council. The establishment of the initial Islamic bank occurred in 1983, while the inception of the inaugural Islamic takaful firm took place in 1984. Islamic Finance, a fast-expanding sector, is poised to attain worldwide market success through the adoption of the Financial Sector Masterplan formulated in 2001. This growth can be attributed to favorable regulations that have been put in place. The establishment of the Malaysia International Islamic Financial Center in 2006 sought to facilitate the consolidation of the global Islamic financial ecosystem. The primary objective is to establish itself as the preeminent hub for Islamic finance in the Asia-Pacific region. This will be accomplished by a strategic emphasis on formulating and implementing cutting-edge policies that foster competitiveness and innovation, ultimately leading to the realization of its aspiration as a prominent Islamic finance center.