More resources needed to boost Malaysia’s Islamic finance sector

The pool of skilled Islamic finance professionals needs to be expanded in order to address the rapid growth and the emerging challenges of inflationary pressures, geopolitical tensions, banking sector stresses, and advancements in technological and digitalisation.

That’s the view of Malaysia’s Chartered Institute of Islamic Finance Professionals (CIIF), which said the global Islamic financial services industry was growing by 4% year-on-year (YoY), worth an estimated $3.38 trillion in 2023.

Kemal Rizadi Arbi, President of CIIF, said that continuing education is “essential for Islamic finance professionals if they are to deliver high-quality workmanship and foresight that would contribute to the industry greatly”.

Speaking at CIIF’s 3rd Conferment Ceremony for its newly conferred Chartered Members, held in Kuala Lumpur, Kemal said: “This ceremony not only celebrates individual achievements but also showcases the power of collective commitment to talent development. We are inspired by corporations and organisations that have gone beyond the ordinary to elevate their workforce, demonstrating a shared belief that investing in people is the cornerstone of success.

“These organisations have empowered their teams to embrace lifelong learning and professional growth, ensuring they are well-equipped to navigate the evolving complexities of today’s economic challenges.”

He added: “As skilled human capital is a significant component of growth of the Islamic finance industry, upskilling the workforce with professional qualification and institutionalising this qualification within career development of talents in the industry, is a key element in moving Islamic finance to the next level.

“Let us all commit to building a more vibrant and resilient Islamic finance landscape—one that serves not just the financial and capital markets, but humanity,” he said.

The signing of a Memorandum of Understanding (MoU) with the Association of Seniors in Islamic Finance (ARIF), Universiti Teknologi MARA (UiTM), and Enforcement, Leadership, and Management University (ELMU) also took place at the event.

The MoU with ARIF aims to focus on fostering mutual benefits in the Islamic finance industry through various shared initiatives, including knowledge sharing between experienced professionals and young talents, as well as professional development. The objective of the MoU with UiTM is to bridge academic and professional gaps in Islamic finance by combining UiTM’s educational capabilities with CIIF’s industry expertise. Meanwhile, the MoU with ELMU focuses on combining efforts to advance professional development and education in governance, Islamic finance and related fields.

CIIF also launched its newest certification programme at the event – Professional Certification in Shariah Governance, Risk Management and Audit for Takaful Operators, which aims to equip professionals with the critical knowledge, tools and strategies needed to excel in Shariah governance, manage risks effectively and implement robust audit frameworks specific to Takaful operations. It is set to open for enrolment in the first quarter of 2025.

CIIF is a professional body for qualified practitioners in the Islamic finance industry established since 2015. To date, it has 1,541 members worldwide.

For more information visit https://www.ciif-global.org.

Businesses reporting a strong final quarter

The outlook for the fourth quarter of 2024 is positive, with Malaysia’s Business Confidence Index (BCI) reaching nearly 105 points. Any score above 50 points represents business optimism.

In a survey report, the Malaysian Institute of Economic Research (MIER) said key drivers include stable production and sales, improved employment levels, increased wage costs, rising investments and enhanced efficiency in capacity utilisation.

“MIER’s Malaysian Business Condition Index for the fourth quarter of this year is expected to reflect growth in sales, production, employment and wage costs. The index highlights positive trends in employment and sales, signalling resilience and strong recovery potential.”

Accordingly, the survey found exporters enjoyed an improvement in export orders in the third quarter of this year, rising 16.7 points to 48 points compared with the same quarter in 2023.

“Quarter-on-quarter analysis indicates a rising trend, with an increase of 9.1 points to 48.0 compared to the second quarter of 2024. More than 60% of the firms surveyed reported either an increase in export orders or remain stable,” the report said.

In the third quarter of this year, the manufacturing sector saw over 70% of respondents reporting a stable and positive trend. It said: “The survey revealed that 20% of firms involved in the export markets presented a steady trend.

“Firms operating in domestic market environment showed a rising trend, with 10% of firms reported an increase in their production.

“Over 60% of the firms that were involved in both domestic and exports markets presented a stable production volume.”