Islamic funds zone in on Malaysia

Financial Standard -- Australian investors monitoring the boom of Islamic funds management should look across the seas to Malaysia, which recently approved three international financial firms to set up shop in the country.

The Securities Commission (SC) has approved the applications of Kuwait Finance House (Malaysia) Berhad, DBS Asset Management Ltd and CIMB-Principal Islamic Asset Management Sdn Bhd to open operations in Malaysia.

“The approval of these three companies will play a catalytic role in the internationalisation of our Islamic capital market," said SC chairman Dato' Zarinah Anwar.

Dato' K. Salman Younis, managing director of Kuwait Finance House (Malaysia) is optimistic about the growth prospects of the Malaysian capital market.

“The KFH Group's fund management activities in the region will be consolidated through this platform," said Younis.

“The new entity will structure and distribute Islamic asset management products across Asia via synergies with DBS and DBS' Islamic Bank of Asia," said DBS Asset Management chief executive, Deborah Ho.

The SC is currently evaluating proposals from other fund management companies to establish Islamic fund management operations in Malaysia.

DBS Asset Management and its associate companies currently manage $20.8 billion in assets with distribution channels in South East Asia, Middle East, Greater China and the Indian sub-continent.

CIMB-Principal Islamic Asset Management is a joint venture between the CIMB Group and the Principal Financial Group. CIMB Principal will focus its Shariah fund management activities at CIMB-Principal Islamic Asset Management.

Kuwait Finance House (Malaysia)is a wholly owned subsidiary of Kuwait Finance House.