Islamic Fund Management
91
Chart 4.6: Factors Influencing the Development of Malaysia’s Islamic Fund Management
Industry
Sources: RAM, ISRA
Table 4.8: Recommendations on Improving Demand (Buy Side)
Issues and Challenges Demand (Buy Side) Opportunities
1. Continuous enhancement of financial
literacy, education and awareness
programmes for retail investors.
 The need for investor education and financial
literacy has never been greater. As the financial
marketplace continues to evolve and innovate,
investment products are becoming increasingly
complex and financial services increasingly diverse.
Greater understanding of key financial concepts is
required on the part of retail investors to
understand and evaluate the choices available to
them and avoid fraud. Investor education and
financial literacy programs also have the potential
to help improve financial outcomes for retail
investors. Benefits include more informed savings
and investment decision-making, better financial
and retirement planning, greater confidence and
higher participation in the securities markets,
greater wealth accumulation, and increased
awareness of investor rights and responsibilities.
2. Strengthening Malaysia’s value
proposition as an international hub for
SRI funds
 There are opportunities to attract foreign
investments into domestic funds. Growing interest
and popularity of SRI segment from developed
market provide an opportunity for Malaysia to
profile Islamic funds internationally as both Islamic
investing and SRI adopt similar underlying
principles. Global sustainable investment AuM
reached USD22.89 trillion in 2016, compared with
USD18.28 trillion in 2014, an increase of 25%. With
Islamic funds being recognised as part of the SRI