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Islamic Banking in Malaysia 2024

Islamic Banking in Malaysia

Islamic Banking in Malaysia 2024

Malaysia is one of the fastest-growing Asian economies. They are a Muslim-based country that values Islamic law. That\’s why in 1983 they built the first Islamic bank. Now, Islamic Banking in Malaysia is rapidly growing. Here, we will know where we can study it and related things.

The main principles of this banking are mutual risk and profit-sharing between parties. Here, you have the assurance of fairness for all. Apart from that, business activity or assets are based on transactions.

 How many Islamic Banks are there in Malaysia?

There are mainly 16 banks in Malaysia, that strongly follow Islamic law. You may hear that Islamic law is also called Shariah law. Here\’s the list:

1Affin Islamic Bank Berhad
2Al Rajhi Banking & Investment Corporation (Malaysia) Berhad
3Alliance Islamic Bank Berhad
4AmBank Islamic Berhad
5Bank Islam Malaysia Berhad
6
Bank Muamalat Malaysia Berhad
7CIMB Islamic Bank Berhad
8Hong Leong Islamic Bank Berhad
9HSBC Amanah Malaysia Berhad
10Kuwait Finance House (Malaysia) Berhad
11Maybank Islamic Berhad
12MBSB Bank Berhad
13OCBC Al-Amin Bank Berhad
14Public Islamic Bank Berhad
15RHB Islajjmic Bank Berhad
16Standard Chartered Saadiq Berhad
Name of Islamic Bank in Malaysia

According to Fitch Ratings-Singapore-28 February 2021: 

Malaysia\’s Islamic banking sector continued to expand amid economic challenges from the coronavirus pandemic, says Fitch Ratings. The share of Islamic financing in the banking system reached 37% by end-2020 (end-2019: 35%), with Islamic financing contributing nearly all of the banking sector\’s growth in 2020, driven by household financing and banks that promoted Islamic products as part of the \”Islamic First\” strategy.

Now, you can understand why is Islamic banking important in Malaysia. If you want to make a career in the banking sector you should know about it.

Where we can study Islamic banking in Malaysia?

In Malaysia, you will find so many universities which offer Islamic banking courses. Here, we make a list of those universities that offer this subject. University- Management and science offer you, Bachelor, in Islamic Banking (Hon.). However, if you want only to do a Diploma you can do it also from here. But the time of Honours is 3 years where diploma only needs 2.5 years.

Nevertheless, you may complete your diploma from City University also. But for a higher study like a master\’s, you must go to Lincoln University.

In this sector, you will also find Islamic banking and finance. That is a highly demandable subject also. According to a resource, more than 100 financial institutions in over 45 countries practice some form of Islamic finance. And the industry has been growing at a rate of more than 15 percent annually for the past five years.

Principles of an Islamic financial system

According to shariah, the basic framework for an Islamic financial system set its rules and laws. From the Quran and its practices, where shariah originates. You can classify the basic principles of an Islamic financial system into six sections. Those are:

  • Prohibition of interest
  • Risk sharing
  • Money as “potential” capital
  • Prohibition of speculative behavior
  • Sanctity of contracts
  • Shariah-approved activities

How many types of Islamic Finance have in Malaysia?

If you see the current record, you can see that 6 types of Islamic finances are available in Malaysia. Such as,

  • Murabaha
  • Ijarah
  • Istisnaa
  • Mudarabah
  • Musharaka
  • Tawarooq

As a result, Malaysia has full-fledged Islamic banks including several. However, that shows how rapidly their banking sector grew in recent years.

Nevertheless, if you want a job in Islamic banking in Malaysia, you have to gain proper knowledge of it. For that reason, you must study these subjects especially, Islamic banking and finance courses. So, you just check the universities which we mention in the article.

For any information about Higher Study please contact us:Shebaru2/4 Block-G,Lalmatia,Dhaka-1207,Bangladesh.01711-981051,01898974420,01897984421.

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