Islamic Fund Management
153
Table 4.25: Recommendations on Improving Demand (Buy Side)
Issues and Challenges Demand (Buy Side) Opportunities
1. Lack of market awareness and
understanding of Islamic finance
Concerted efforts by the Islamic finance
community to build understanding, awareness
and promote Islamic finance to Muslims and
non-Muslims. The setting up of a viable
proposition to attract corporate sector
sponsorship may provide opportunities to host
Islamic finance conferences/seminars/training.
2. Government and private sector employees
are not given the flexibility to choose the
type of pension funds to invest in
Encourage the government and private sector
employers to allow employees to decide which
funds to invest in. This will facilitate
opportunities for Muslims or ethically-inclined
employees the option of investing in Shariah-
based funds.
3. Lack of incentives to encourage Shariah-
compliant savings and investment
 Provide tax incentives to investors to invest
in Shariah-compliant products and for
AMCs to establish Islamic funds.
 Tap the potential wealth of awqaf funds,
high-net-worth Muslim individuals, and
other Islamic funds to create a base of
Islamic institutional investors that will spur
demand for Islamic fund products.
Source: RAM
Table 4.26: Recommendations on Improving Supply (Sell Side)
Issues and Challenges Supply (Sell Side) Opportunities
Inadequate Shariah compliant asset  In line with the government’s efforts to
increase the number of green companies,
public awareness on the similarities of
Islamic finance and ESG/green finance should
be emphasised. This will encourage
companies to be listed as both Shariah-
compliant and ESG entities.
 Develop an ICM masterplan to spur the
promote of Shariah-compliant assets.
Absence of a harmonised approach among
the Shariah advisor committee.
 Create a task force that comprises industry
players and regulators, with representatives
from every company to develop a harmonised
Shariah governance framework. This will help
address disputes and promote transparency
in Shariah rulings.
Shortage of experts in Islamic finance
industry
 Establish accredited Islamic education
institutions to offer Islamic finance training/
professional courses. Encourage local Islamic
finance talent from the corporate sector to
share their experience and knowledge.
Source: RAM