Islamic Fund Management
92
universe, Malaysia is currently the largest SRI funds
market in Asia (excluding Japan) with 30% market
share. The SC recently issued the Guidelines on
Sustainable and Responsible Investment (SRI)
Funds to facilitate and encourage further growth of
SRI funds in Malaysia, in anticipation of an uptrend
in SRI assets in this region. The new Guidelines will
widen the range of SRI products in the market and
attract more investors into the SRI segment.
3. Facilitating new digital business models
and seamless interaction with mass
affluent investors.
 The next step forward will be the digitalisation of
wealth management and financial planning. The
creation of seamless platforms and mobile
applications will gain greater traction among mass
affluent investors and improve financial inclusion.
Source: RAM
Table 4.9: Recommendations on Improving Supply (Sell Side)
Issues and Challenges Supply (Sell Side) Opportunities
1. Enhance regional collaboration for cross
border offerings.
 Regional collaboration via bilateral and multilateral
arrangements can be further enhanced for broader
market access and greater international
connectivity. Luxembourg success in becoming a
global funds centre can be a good business case.
2. Earmarking of institutional funds for
Shariah-compliant investment or SRI
investing.
 The EPF has led the way through the launch of its
RM100 billion Simpanan Shariah in 2016, which had
catalysed market players to increase the supply of
Shariah-compliant assets. As more institutions (e.g.
Khazanah, KWAP) move to provide similar fund
allocations, this will further strengthen the pipeline
for Shariah-compliant assets.
3. Advance Malaysia’s position as a hub for
investment support services.
 Malaysia actively promotes shared services and
outsourcing activities under the segment of the
Business Services industry. This segment has been
successfully built and has hosted many international
providers. These competitive strengths can be
leveraged on in operational, tax and human capital
infrastructure to attract more international fund
administration service providers to establish their
regional and international base in Malaysia. At the
same time, further development of domestic firms
operating in this market segment will also be
facilitated.
 The presence of a broad range of international and
domestic firms will enhance competitive positioning
of the industry, providing a spectrum of fund
administration service offerings including custody,
trustee, clearing, fund accounting and transfer
agency services. Recognition as an international hub
for fund administration will enhance Malaysia’s
competitiveness in attracting a wide array of
international funds, especially Islamic and
sustainable responsible investment (SRI) funds, to
be domiciled in the country.
Source: RAM