Sustainability of Islamic Finance

The view of a market practitioner.

 "The decision not to set up Islamic Window and full fledged Islamic product is one of the corporate strategic move. 

In the early days of Malaysia Islamic Finance, the low cost funding and high profit provides an attractive edge for business, but today, this characteristic is now gone. 

To ensure the competitiveness of Islamic products, Msia government is pumping in subsidies and incentives such as stamp duty waiver for the products. The gov in effort to make Malaysia a regional Islamic Financial hub, is relentlessly encouraging Islamic products, but how long can it sustains? 

If it is successful, bank with both conventional and Islamic window, the cannibalism effect will take place.

Remember, Islamic products are stemming from conventional banking products which is based on Capitalism designed by the Western. To fully implement the Islamic teaching, the financial system has to be revamped. Even though the Islamic window of some banks are are enjoying double digit growth, but their profitability ain't high. 

After all it is not a bad idea for not introducing Islamic window, you know it will be a huge investment if we are going into it."  HOD of Commercial Banking

"If you are interested in  Islamic certification, it is better if you go after CFA which is more well-recognized"  Senior officer in foreign bank



The view of Scholars

"Go and take Inceif certificationin Islamic Finance, as it is recognized worldwide, Islamic Finance is going to prosper at least in the next 100 years! It is not requirement for you to be Muslim to involve in Islamic Finance"

"It is lucrative position as the Syariah advisor in Syariah board which is mandatory requirement of Islamic Banking. You are given first class flight ticket, luxurious accommodation and remuneration not less than US$10k. But you have to be a Muslim...."