financial firms get Islamic fund management go-ahead

3 financial firms get Islamic fund management go-ahead
THE Securities Commission (SC) has given three financial institutions the green light to set up local Islamic fund management companies.

Applications made by Kuwait Finance House, DBS Asset Management and CIMB-Principal Islamic Asset Management were approved in line with the government's move to strengthen Malaysia's position as an international Islamic financial centre.

"The approval of these three companies will play a catalytic role in the internationalisation of our Islamic capital market," said SC chairman Datuk Zarinah Anwar in a statement issued on Saturday.

She added that interest shown by international players to participate in Malaysia's capital market enhances Malaysia's opportunity to be a leading Islamic fund and wealth management hub.

The SC is also currently evaluating proposals from other leading fund management companies to establish Islamic fund management operations here.

Kuwait Finance House managing director Datuk K. Salman Younis said the group's fund management activities in the region will be consolidated using its local Islamic fund management unit.

Meanwhile, DBS Asset Management Ltd chief executive officer Deborah Ho said its new entity will structure and distribute Islamic asset management products across Asia via synergies with DBS and DBS' Islamic Bank of Asia.

"We are now awaiting the necessary regulatory approvals from the Monetary Authority of Singapore," Ho said.

DBS Asset Management and its associate companies currently manage RM65 billion in assets.