MALAYSIA TO HAVE MEGA ISLAMIC FINANCIAL INSTITUTION

PUTRAJAYA, April 27 (Bernama) -- Malaysia will be the first country to have
a mega Islamic financial institution with a paid up capital of at least US$1
billion.

"In the present economic environment, there is no such Islamic
financial institution. In fact, we don't have it in any part of the world," Bank
Negara (Malaysia's central bank) Governor, Dr Zeti Akhtar Aziz told reporters
here Monday.

Prime Minister Mohd Najib Razak announced Monday a significant package of
measures to liberalise the financial sector.

It includes two new Islamic banking licenses to be issued to foreign
players this year, with a paid-up capital of at least US$1 billion.

According to Zeti, the banks would be for international business.

"The criteria is for a paid up capital of US$1 billion. Therefore, the
business has to be international, from any part of the world to justify
the level of capitalisation," she said.

Najib, also the Finance Minister, announced too that two new commercial
banking licenses would be given to foreign participants who are able to infuse
professionalism in specific areas and significantly contribute to the
development of the country.

On the kind of specialisation expected, Zeti noted that the services and
products to be offered would not as yet be significant in Malaysia, such as in
infrastructure, agriculture and technology.

For all licenses given out in 2009 the application should be before Oct 31
and if successful, commercial operations can begin in 2010.
-- BERNAMA