Infrastructure enforcement for Islamic Capital Market – Malaysia as an example


October 10, 2016
Infrastructure enforcement for Islamic Capital Market – Malaysia as an example
Professor. Zober bulahbal

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Issue

Malaysia is a distinct country that has developed a viable Islamic Capital Market (ICM), offering a variety of products and services, important in financing development projects, and an international hub for Islamic securities. Therefore, the purpose of this paper is to examine ICM infrastructure, highlight the development stages of the Malaysian ICM, and determine the important factors contributing to its success; by describing ICM and its infrastructure, analysing the components of this infrastructure, and showing their roles in the development of Malaysian ICM. The paper concluded that the development of Malaysian ICM went by three main stages: descovery then acceptance and then stratigic devlopment, and during these stages the efforts were focused on creating and strengthening the components of ICM Infrastructure, which include: a facilitative and efficient legal, regulatory and tax framework; a sound Shariah governance system; development of talent specialized in Islamic finance and a wide range of products and services. Keywords: Islamic Capital Market, ICM Infrastructure, Malaysian experience, Development stages, Development factors.

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