M'SIA NEEDS TO IMPROVE AND BECOME TRENDSETTER IN ISLAMIC FINANCE, SAYS ECONOMIST

BY NOR BAIZURA BASRI

KUALA LUMPUR, April 30 (Bernama) -- Malaysia needs to further improve and
become the trendsetter for Muslim nations in terms of the Islamic financial
system.

The former executive director of the International Monetary Fund (IMF) Dr
Abbas Mirakhor said rather than compare itself with the Islamic financial
structure of other Muslim countries, Malaysia should focus on enhancing its
current framework.

"I think right now, Malaysia is showing the way for the Muslim world in
terms of not only economics but also from the social point of view," he told
Bernama when asked about the global perception of the country's Islamic
financial structure.

"I believe the future of the Muslim ummah will probably be charted by
Malaysia through its continuous devotion to improving the Islamic financial
system and in expressing its Islamicity," Abbas said on the sidelines of the
International Conference on Islamic Economics and Economies of the Organisation
of Islamic Conference countries here.

Abbas, who is also an economist, was one of the speakers on the last day of
the two-day conference. He spoke on, "Islamic Economies and Finance: An
Institutional Perspective".

About 150 participants attended the conference comprising academicians and
economists as well as university students.

"Malaysia has come a long way in developing Islamic finance and Insya-Allah,
it will progress much faster.It is a trendsetter right now in Islamic finance
and will be soon in Islamic economics.

"Malaysia has also developed a high degree of tolerance within its society,
ahead of other Islamic countries," he added.

According to a research house, the Malaysian Islamic financial sector is
seen as one of the most progressive and attractive in the world, given the
numerous incentives planned and further liberation in the coming years.

Malaysia, with a population of 26 million, is the largest
Islamic banking and financial market in the world.It has Islamic banking assets
of RM113.5 billion and takaful assets of RM6.2 billion.

-- BERNAMA