KUALA LUMPUR, Oct 10 (Bernama) — Malaysia continues to be a significant player in the Islamic fund management industry, accounting for about 25 per cent of Islamic assets under management (AUM) globally as at June 17 this year. The Finance Ministry, in its Economic Report 2014-2015 released Friday, said on the domestic front, the Islamic AUM accounted for some 16.9 per cent of the industry’s total AUM as of end-June this year. During the first seven months of this year, fund management companies remained at 19 while seven additional Islamic unit trust funds and 13 Islamic wholesale funds were launched, bringing the total to 185 and 65 funds, respectively (end-2013: 19 funds; 178 Islamic unit trust; 52 Islamic wholesale funds).
As of end-July this year, the report said the total Net Asset Value (NAV) of Islamic unit trust funds stood at RM45.4 billion and Islamic wholesale funds at RM17.5 billion. The report is issued in conjunction with the tabling of the 2015 Budget in Parliament Friday by Prime Minister Datuk Seri Najib Tun Razak, who is also Finance Minister. The report said the Export-Import Bank of Malaysia Bhd (MEXIM) in February this year issued its inaugural US$300 million five-year sukuk wakala, which received overwhelming response from investors globally and was oversubscribed more than 10 times. “The issue was accorded a credit rating on par with Malaysia’s sovereign rating,” it said.
Meanwhile, the report said the takaful industry assets stood at RM22.2 billion, accounting for 9.3 per cent of the total insurance and takaful sector assets as of end-July this year. “Capitalisation of the takaful industry remains sound at 190.8 per cent. The excess of income over outgo for the family takaful business remained stable at RM1.5 billion, attributed to the combination of lower net contributions and net certificate benefits of RM1.1 billion. “The takaful industry posted a net capital gain of RM32.4 million during the same period. The market penetration rate of takaful also improved slightly to 14.2 per cent as of end-July this year,” it said.