Two of Malaysia’s top banking groups held a signing ceremony ahead of the launch of Commodity Murabahah House, an exchange-traded platform for shariah-compliant transactions. The launch is expected in mid-August.

The banks are Bank Negara Malaysia and Bursa Malaysia. The CMH platform will unlock a vast potential of opportunities for the Islamic financial industry and boost Malaysia’s status as a hub for such finance, BNM’s deputy governor Y Bhg Dato' Mohd Razif Abd Kadir, said.

This development comes at a time of growth for the global Islamic wealth and fund management sector, driven by strong demand from both Muslim and non-Muslim investors. 

There are nine Islamic fund management firms operating in the country, 14 Islamic banks with international currency business units, and three international Islamic banks.

In the market for sukuk bonds – sukuk is the Islamic version of debt securities - Malaysia is the largest market covering over 60 per cent of the global sukuk industry.

In 2008, its new sukuk issuance numbers was reported to be the highest worldwide at over 35 per cent. Also, recently, the government relaxed rules on foreign equity participation to 70 per cent shareholding.