EXPERTISE MATTERS: Professional Ancillary Services
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ISLAMIC FINANCE EXPERTISE MATTERS: Professional Ancillary Services Expertise. Innovation. Deal Flow www.mifc.com Join the #YnotIF conversation Malaysia World’s Islamic Finance Marketplace www.mifc.com @MalaysiaIF MYIF mobile app MarketplaceIF Our Islamic finance marketplace is open to the world. CONTENTS Preface 3 Malaysia: World’s Islamic Finance Marketplace 4 Professional Ancillary Services in Malaysia 6 Business Directory of Professional Ancillary Services in Malaysia Shariah Advisory Firms 7 Legal Firms 21 Accounting and Audit Firms 39 Technology Solutions Firms 45 Commodity Trading Platforms 51 Human Capital Development Entities 57 Rating Agencies 67 PREFACE Malaysia’s current leadership in Islamic finance is that it is also well supported by comprehensive industry is a result of its almost 40 years’ and progressive professional ancillary services experience in continuously advancing the industry. providers. This industry represents a vital part to Various stakeholders comprising thought leaders, complete the value chain of Islamic finance industry visionaries and policy makers are committed to in the country. The diversity of market players in mobilise resources together to develop Malaysia’s the professional ancillary services sector has also Islamic financial industry into what it is now - contributed to the overall competitiveness of the a comprehensive and complete ecosystem of Malaysian Islamic financial marketplace. Shariah-compliant financial industry that works alongside with the conventional system. Today, Malaysian Islamic finance providers and the Malaysian Islamic financial industry is a vibrant professionals have become highly sought expertise industry with a complete value-chain that provides by global community and organisations. This Islamic finance business solutions for global publication is designed to share business profiles business and financial community. and track record of providers offering Islamic finance solutions in Malaysia. Fast changing dynamics of the industry and proliferation of the market players require Global financial community are welcome to backing from a robust and exponential capitalise and pursue collaborative efforts with growth of professional ancillary services to Malaysian providers and benefit from what Malaysia ensure fast evolution of the industry. Another has to offer. uniqueness of Malaysia’s Islamic finance offerings P R E F A C E | 3 MALAYSIA: WORLD’S ISLAMIC FINANCE MARKETPLACE Islamic finance in Malaysia has developed into commanding a market share of 51.0% and 36.2% a comprehensive and sophisticated Islamic respectively. Malaysia’s sukuk market is largely driven finance marketplace. Malaysia’s Islamic finance by corporates and government related entities (66.8%), marketplace is characterised by a robust regulatory, and has been a viable funding tool for various mega supervisory, Shariah and legal framework, a deep infrastructure projects. Recently, Malaysia marked primary market and active secondary sukuk a milestone in sukuk innovation with the inaugural market, a diverse players with global capabilities issuance of world’s first green SRI sukuk by Tadau and connectivity for business deals anywhere in the Energy (a Malaysian solar farm company). In the world. Equal emphasis on training, education and banking sector, Malaysia’s total Islamic banking assets research has clearly propelled Malaysia’s position in stood at USD204.4 billion as at end-2017, ranked the global Islamic financial industry, simultaneously third globally after Iran and Saudi Arabia. In Islamic encouraging solid pool of talents and professionals wealth management industry, Malaysia held the as global thought leaders and source of reference leading position as key domiciles for Islamic funds for the global industry. by AuM with USD28.3 billion (36.5% global share). Malaysia also ranked first globally in terms of number Malaysia maintains a leading position on various of funds (27.9% global share), with a total of 394 funds fronts. Malaysia continues to be the main driver registered as at end-2017. for both sukuk outstanding and issuance in 2017, P R E F A C E | 4 The Landscape of Islamic Finance in Malaysia Malaysia’s Islamic Financial Assets Diverse Set of Industry Players & Service Providers Offering Islamic Financial Services Source: Various, MIFC Malaysia International Islamic Financial Centre The marketplace is open to global industry (MIFC) is an aspiration founded in 2006. The players and market participants to collaborate and MIFC Community is a network of the country’s mutually benefit from a highly conducive business financial sector regulators, government ministries environment of innovation, expertise and deal flow. and agencies, industry players from the Islamic This high level commitment by various stakeholders banking, takaful, re-takaful and Islamic capital further epitomised the vision and collaborative market industries, human capital development structure in place to advance the development of institutions as well as professional ancillary services Islamic finance at national and global level. companies. P R E F A C E | 5 PROFESSIONAL ANCILLARY SERVICES IN MALAYSIA Malaysia’s Islamic finance marketplace has a Many of these providers have supported the wide array of professional ancillary services advancement of the Islamic finance industry either providers offering comprehensive Islamic finance in advanced or new Islamic finance markets. A services. Collectively, Malaysia hosts more than 60 number of jurisdictions have benefited from these professional ancillary services firms with a wide- firms’ expertise in formulating legal and regulatory range expertise and capabilities. This includes frameworks in introducing Islamic finance. Shariah advisory firms, legal firms, technology Collaborations with multilateral and international companies, accounting and audit firms, rating organisations are also established by several firms agencies, commodity murabahah platforms as well to drive global initiatives and standard settings. In as the human capital development institutions. addition, global clients have sought advice from these providers on many fronts among others product advisory, governance, tax treatment, audit, training and accreditation. Experienced practitioners from this network are also appointed as experts in various institutions globally. Going forward, roles of these service providers will become more demanding. Technology evolution, regulatory changes, rising demand on Islamic finance and greater internationalisation of Islamic finance are amongst the factors that will require greater support from professional ancillary services providers. Various efforts are currently undertaken by Malaysian providers to foster more diverse collaborative partnerships across various segments to ensure efficient delivery and relevancy of the services provided by the industry. Engage and connect with us. P R E F A C E | 6 SHARIAH ADVISORY FIRMS An important element of a progressive Islamic finance marketplace is the strength and soundness of its Shariah frameworks and expertise. The development of Malaysian Islamic finance industry places Shariah as the apex by integrating application of Shariah principles in the regulatory and operational requirements of the Islamic financial institutions. This has heightened expectation on Shariah scholars and firms to evolve and play active roles in ensuring compliance and progressive development of the industry. As an example, Shariah scholars in Malaysia have also benefited from having exposure to the operational situation in the management of Islamic financial institutions, where qualified Shariah scholars are also appointed as members of Board of Directors at Islamic financial institutions. There are now 12 Shariah advisory firms in Malaysia. These firms have accumulated vast experience in offering Shariah advice in a wide range of areas, among others issuances of new and innovative product structures, advisory on regulatory and policy developments, and institutional development e.g. establishment of new banks and transformation of Islamic windows into full- fledged Islamic subsidiaries. More importantly, these institutions are actively providing their services in other jurisdictions, facilitating development of Shariah framework and advisory globally. S H A R I A H A D V I S O R Y F I R M S | 7 List of Shariah Advisory Firms Afsha Shariah Advisory 9 Amanie Advisors 10 Elzar Shariah Solution 11 Islamic Banking and Finance Institute Malaysia (IBFIM) 12 IIUM Shariah Advisory Services 13 ISRA Consultancy 14 MAHA Shariah Advisor 15 Muamalah Financial Consulting 16 Salihin Shariah Advisory 17 Tawafuq Consultancy 18 Webshariah Solutions 19 ZICO Shariah Advisory Services 20 AFSHA SHARIAH ADVISORY Afsha Shariah (previously known as AFTAAS Shariah AREA OF SERVICES Advisory) was incorporated in 2008, registered and licensed by the Securities Commission of • Business consultancy and advisory Malaysia to provide services in Shariah advisory • Publication and consultancy works. Drawing upon the skills • Research (on Shariah-compliant matters and due and expertise of multi-disciplinary and experienced diligence) Shariah advisors and subject matter experts, the • Product development (develop competitive firm offers wide and comprehensive range of Shariah-compliant products and services including services. viable business propositions) • Education and training (including training on Shariah Shariah Board Members of Afsha Shariah Advisory audit, review,