Mega Islamic banks to position Malaysia in global Islamic finance

Mega Islamic banks in Malaysia will serve the needs of the domestic economy and position the country as the benchmark in Islamic global finance, says Second Finance Minister Datuk Seri Ahmad Husni Hanadzlah.

It would also place Malaysia far ahead of other competing countries, he said.

"Bank Negara Malaysia has issued one license. Why is there such a need...we need to see in the context of the country's economy. Under the National Key Economic Areas, financial services is among the economic growth sectors and it is also an area where we are competing with other countries," he told reporters after officiating the opening of Mydin's 100th chainstore and its 10th hypermarket at Gugusan Manjoi here.

Todate, Bank Negara Malaysia (BNM) has not made any announcement on the receipient of the license.

Last March, the central bank expected two entities that were given temporary licenses to set up mega Islamic banks, to make the announcements on their investment plans.

BNM Governor, Tan Sri Dr Zeti Akhtar Aziz said the central bank had given them more time to announce their plans considering the current challenging environment and the high investment cost involved.