Islamic Fund Management
155
Figure 5.1: Ecosystem of the Islamic Fund Management Industry
Equities
Fixed Income
MoneyMarket
REITs
ETFs
Balanced Funds
Sustainability
of Shariah
Assets
Five Core Pillars
Legal, Regulatory,
Shariah
Framework&
Market
Supervision
Development of
Institutional
Funds
Tax Framework
Market
Infrastructure
Liberalisation
of Policies
and Guidelines
Demand for
Shariah Assets
Source: RAM
As mentioned earlier, the establishment of the necessary pillars to kick-start or support the
development of the Islamic fund management industry is key to ensuring sustainable organic
growth. However, a definitive structure must be established upfront to ensure the pillars are
successfully incorporated. The framework should also highlight the roles and responsibilities
of key stakeholders and identify actionable measures to promote accountability and
monitoring of progress, in line with the proposed roadmap. The factors listed in
should be taken into consideration in the development of the framework and roadmap for the
Islamic fund management industry.
Table 5.1: Key Measures to Support a Viable Framework for Islamic Funds
Item 1 - Political Will and Cohesive Collaboration with Key Stakeholders
Key National Measure Merits and Actionable Measures
Establish an enabler or
catalyst to produce a viable
framework for the
successful deployment of
Islamic funds
 Government’s presence in promoting the successful inclusion of Islamic
funds within the financial landscape will boost and aid effective
implementation of strategies.
 Key areas of review or development to support an enabling environment:
1. Establish a dedicated entity or agency that looks at streamlining
Islamic finance activities (e.g. Malaysia established the Malaysia
International Islamic Financial Centre (MIFC) under BNM to
promote Islamic finance in the country).
2. The specialised centre has the responsibility of identifying gaps and
market challenges, as well as engaging with market players to
identify practical solutions.