KLIDF: A SIGNIFICANT BOOST TO NATION'S LEADERSHIP IN ISLAMIC FINANCE

By M.Saraswathi

KUALA LUMPUR, April 1 (Bernama) -- Malaysia harbours a global aspiration for
the Kuala Lumpur International Financial District (KLIFD) to be given a
significant boost, strengthen and maintain the nation's leadership in Islamic
finance and banking, says Prime Minister Najib Tun Razak.

Malaysia has been maintaining its leadership in Islamic banking and finance
for over three decades now with 60 per cent of the international Sukuk issued
from here.

"We hope to be the leader (in Islamic banking and financing) because that's
our aspiration. We have a global aspiration. We have to put in place all the
necessary projects and programmes, and one of them is having the international
financial district," he told Boomberg television in an interview Friday on his
achievements after two years in office.


Najib, who is also Finance Minister, said the sector helped Malaysia cushion
the impact of the global financial crisis.

"It did actually. It didn't have the same negative impact as conventional
banking because it is based on productive real assets, not on speculative
consideration," he said.

Going forward, Malaysia would see a very steady growth in Islamic assets.

"It did double-digit growth. That's what we expect in the years to come," he
said adding that the country had all the necessary ingredients to continue
assuming a leadership role in Islamic finance.

"One of the ways in which we can maintain our leadership is to ensure the
necessary support for that, especially in terms of training and expertise. We
have a center here," said Najib.

The International Centre for Education in Islamic Finance (INCEIF) is the
global university offering academic and professional qualifications in Islamic
finance based in Kuala Lumpur.

Bank Negara Malaysia (central bank) allocated an endowment fund of RM500
million (US$1=RM3.02) to cover the operational expenditure of INCEIF.