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Key Facts

• It was reported nationally on 2nd April 2011 that Malaysia is open to major banking players who can contribute to the country's economy and the relations between both counties. The Deputy Finance Minister Datuk Dr. Awang Adek Hussin intimated that the Malaysian government would also give consideration to banks from countries that had not set up any branch in Malaysia as well.

• 5 new banking licences were issued in 2010 compared to 3 banking licences to 3 foreign companies in 2005-2007 (Kuwait Finance House, Saudi Arabia’s Al Rajhi Bank and Dubai Financial group who acquired a substantial stake in Malaysia’s first Islamic Bank, Bank islam Malaysia).

• In 2010. there were 14 wholly owned foreign banks practicing both Islamic and Conventional banking with 2 more short listed to be licensed as “mega Islamic banks with a minimum capital of USD 1 billion.

• The 4 International Islamic Banks (IIBs) registered in Malaysia is Deutsche Bank, Al Rajhi Bank KSA, PT Bank Syariah Muamalat Indonesia and Unicorn IIB Malaysia.\

• Foreign equity participation in Malaysia’ s takaful field SwissRe and Munich Retakaful Malaysia are two key retakaful operators whilst Prudential BSN Takaful and HSBC Amanah Takaful are two direct takaful players along with Hong Leong Tokio Marine Takaful. The World Takaful Report 2010 can be obtained here.

• Tax Relief: Malaysians are entitled to apply for a RM5000 tax relief per year on fees spent studying Islamic Finance in the country. Foreigners mean while who are non-resident experts in Islamic finance can obtain tax exemption on their income.