Infrastructure Financing through Islamic
Finance in the Islamic Countries
91
Chart 4.2. 1: Relative Financial Sector Development in Malaysia (2016) (0-1 Highest)
Source: IMF Financial Sector Development Database,
493C5B1CD33B&sId=1481126573525
Chart 4.2.2 shows the composition of the Malaysian financial industry according to broad
categories of banking, insurance and capital markets. The capital markets sector that includes
the stock market and the bonds/sukuk market is the largest with a total value of RM 3.199
trillion followed by the banking sector with assets valued at RM 2.766 trillion and the
insurance/takaful sectors with assets worth RM 290 billion. The components of the capital
market show a larger stock market segment with a market capitalisation at RM 1.906 trillion
and bonds and sukuk market valued at RM 1.291 trillion.
Chart 4.2. 2: Composition of the Financial Sector: Malaysia 2017 (RM billion)
Source: Estimated from BNM (2017) and SCM (2017)
The financial institutions in Malaysia are diverse and include commercial banks, investment
banks, development financial institutions (DFIs) and other nonbank financial institutions such
as cooperatives, building societies, leasing and factoring companies and other DFIs (BNM
2017). While six DFIs are established under the Development Financial Institutions Act 2002
and are regulated by BNM, seven other DFIs are not under the purview of the Act or BNM. The
former DFIs include specialised banks such as SME Bank, EXIM Bank and Agro Bank and the
latter group includes the Malaysian Industrial Development Bank, Credit Guarantee
0.00
0.10
0.20
0.30
0.40
0.50
0.60
0.70
0.80
OIC Average Asia & Pacific Average Malaysia
0.23
0.36
0.66
0.33
0.46
0.71
0.13
0.26
0.60
Index Value (0-1 Highest)
Financial Development Index Financial Institutions Index Financial Markets Index
0
500
1,000
1,500
2,000
2,500
3,000
3,500
Banking Assets Insurance &
Takaful Assets
Capital Markets
Value
Stock Market
Capitalization
Bonds & Sukuk
Markets
2,766.1
290.0
3,199.0
1,906.9
1,291.9
RM Billion