Malaysia opens door to foreign Islamic finance firms

ALBLEGALNEWS:Malaysia will permit up to five foreign law firms to set up local offices as part of a partial liberalisation of its formerly restricted legal industry.

To promote the country as an Islamic finance hub, the Malaysian government has decided to allow up to five foreign law firms specialising in Islamic finance to set up local offices. However, the firms will not be allowed to branch out into other practice areas, restricted to advising only on Islamic finance transactions.

In a move similar to the Singapore government's recent QFLP licence grants, foreign firms' applications will be judged on their "credibility" and the business plan of their Malaysian office.

However, the decision has been criticised by the local legal industry. The Malaysian Bar Council (MBC) said it was "disappointed" with the government's decision and opposed foreign law firms entering "on a stand-alone basis", and instead proposed a system of "managed liberalisation", through joint ventures between local and foreign firms...Continue Reading