Islamic Finance and Banking in Malaysia with Special Reference to Sukuk Industry

1
Mustafa Dakian
Mustafa Dakian
2
Nursilah Ahmad
Nursilah Ahmad
3
Luqman Anwar Bin Mustafa
Luqman Anwar Bin Mustafa
1 Open University Malaysia

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Malaysia is seen as a success story of rapid growth and structural change with equity. The country has enjoyed a stable macroeconomic environment with low unemployment and inflation rates for decades. However, due to the recent 2008 global financial crisis, the economy has experienced a slowdown in the growth rate. The government has introduced the New Economic Model of 2010 (NEM2010) to shift the country from a middle-income economy to a high-income economy by 2020. In support of these goals, the government has taken steps to liberalize its financial sector since Malaysia is one of the key players in Islamic finance. The present chapter looks into the Islamic finance landscape of Malaysia by focusing on the sukuk industry as well as prospects and challenges facing the industry. By examining sukuk market behavior, it is hoped that policymakers may utilize sukuk as key financial tools to drive the domestic financial sector and demonstrates its bearings on equitable growth.

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No external funding was declared for this work.

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The authors declare no conflict of interest.

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No ethics committee approval was required for this article type.

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Mustafa Dakian. 2019. \u201cIslamic Finance and Banking in Malaysia with Special Reference to Sukuk Industry\u201d. Global Journal of Human-Social Science - E: Economics GJHSS-E Volume 19 (GJHSS Volume 19 Issue E4): .

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GJHSS Volume 19 Issue E4
Pg. 23- 36
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Crossref Journal DOI 10.17406/GJHSS

Print ISSN 0975-587X

e-ISSN 2249-460X

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GJHSS-E Classification: FOR Code: 349999
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May 17, 2019

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English

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Malaysia is seen as a success story of rapid growth and structural change with equity. The country has enjoyed a stable macroeconomic environment with low unemployment and inflation rates for decades. However, due to the recent 2008 global financial crisis, the economy has experienced a slowdown in the growth rate. The government has introduced the New Economic Model of 2010 (NEM2010) to shift the country from a middle-income economy to a high-income economy by 2020. In support of these goals, the government has taken steps to liberalize its financial sector since Malaysia is one of the key players in Islamic finance. The present chapter looks into the Islamic finance landscape of Malaysia by focusing on the sukuk industry as well as prospects and challenges facing the industry. By examining sukuk market behavior, it is hoped that policymakers may utilize sukuk as key financial tools to drive the domestic financial sector and demonstrates its bearings on equitable growth.

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Islamic Finance and Banking in Malaysia with Special Reference to Sukuk Industry

Mustafa Dakian
Mustafa Dakian Open University Malaysia
Nursilah Ahmad
Nursilah Ahmad
Luqman Anwar Bin Mustafa
Luqman Anwar Bin Mustafa

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