Islamic Fund Management
90
Figure 4.7: Lessons from Malaysia’s Experience
Source: RAM
Note: Systemic risk refers to the potential of any widespread effect on the financial system and, thereby, on the
wider economy. Factors which can give rise to systemic risk may include the design, distribution or behaviour
under stressed conditions of certain investment products; the activities or failure of a regulated entity; market
disruption; or the impairment of a market’s integrity as well as the gradual erosion of market trust or confidence
(SC’s Regulatory Philosophy, 2015).
Given its well-developed eco-system, Malaysia is the leader in terms of the number of Shariah
funds launched. depicts the factors influencing the development of Malaysia’s
domestic Shariah funds market while nd outline the policy
recommendations to further strengthen the progress of the Islamic funds landscape.