Islamic finance development in Malaysia (Takaful (1982 – The takaful…
Islamic finance development in Malaysia
Development of financial law
Islamic banking Act 1983
Development and financial act 2002
Central bank of Malaysia Act 1958
Islamic financial services act 2013
Reasons why islamic finance is important
1.respond to need of muslim community
provide alt fund for muslim community
To support economic growth and fulfill demand for the public
1962 – Tabung haji establish in 1962 to aid the Malayan rural economy and enable the muslim to perform “ Hajj”. Structured by the royal professor ungku aziz who was vice chancellor of university Malaya.
1995 – Expand the operating framework to Tabung haji, thus new Tabung haji Act 1995 was formed.
1983 – It was originally established with the sole purpose of assisting with the financial needs of Muslim population of Malaysia.
Bank Islam’s first year of operation was conducted by its temporary headquarter at the first floor of Kompleks Jemaah Haji at Subang, Selangor.
Via the innovative application of Waqf Land development, Bank Islam headquarter is the pristine Menara Bank Islam located in the midst of “ Golden Triangle” of Kuala Lumpur.
1982 – The takaful industry in Malaysia was started in 1982
The takaful form when the government formed a special task force to explore the viability of setting up an Islamic insurance company.
2008 – The ITA (Inter – Takaful operator Agreement) was officially signed among all Takaful operator
The function of ITA is to sets a common standard among all operators to regulate on and control matters related to pre – contract examination for agents.
Affin islamic bank (Affin Islamic)
2005 – the Islamic banking division of AFFIN BANK was incorporated as a separate entity.
1993 – Affin Islamic establishment as the Islamic banking arm of AFFIN BANK.
2006 – AFFIN ISLAMIC operates as a standalone Islamic bank with an authorized and paid up capital of RM 1 billion and RM 160 million respectively.
2008 – AFFIN ISLAMIC became the first domestic Islamic bank in Malaysia to enter into a Musharakah agreement with a notable developer in Pulau Pinang.