Malaysia in "final stages" for Islamic finance legal framework
KUALA LUMPUR (REUTERS) - Malaysia is in the final stages of introducing a new legislation for Islamic banking and takaful products, the country's central bank governor said on Wednesday, which gives a stronger legal basis to contracts devised by financial institutions.
Governor Zeti Akhtar Aziz did not give a time frame for launch of the legal framework. She said the legislation will help the Malaysian central bank better regulate and supervise the Islamic finance industry, which globally is valued at US$1.3 trillion (S$1.6 trillion).
"The legal, regulatory and supervisory framework will need to be adjusted to accord greater clarity to the appropriate legal and regulatory treatment," said Ms Zeti said in a speech delivered in Jakarta on Wednesday.
The new framework will streamline the legal requirements across the Islamic finance industry, where there is a current lack of clarity that potentially hinders its growth ambitions.