Malaysia: Labuan IBFC allocates US$1m to promote Islamic wealth management
KUALA LUMPUR (Jan 28, 2014): The Labuan International Business and Financial Centre (Labuan IBFC), which aims to continue attracting high net worth individual in Malaysia and South East Asia, has allocated US$1 million (RM3.3 million) to promote Islamic wealth management, said its CEO Saiful Bahari Baharom.
"I see good demand in the market. It is gaining momentum, but it really depends on the growth of the economy. Muslim high net worth individuals want to have Syariah solutions," Saiful told reporters after a memorandum of understanding between Labuan IBFC and the Global University of Islamic Finance (INCEIF) here yesterday.
Saiful Bahari hopes that the collaboration with INCEIF will help raise awareness on Islamic wealth management globally particularly through industry-driven research.
He said the partnership will benefit both Labuan IBFC and INCEIF in terms of pooling their resources to conduct more research into understanding Syariah issues in wealth management.
"We hope to feature the findings from this research into an annual journal focusing on wealth management. At the moment, there is no journal point of reference for Islamic wealth management," he said.
Saiful Bahari said the research topics proposed will cover key components of Islamic wealth management, including Syariah-compliant wealth acquisition, risk management, Islamic wealth preservation and wealth distribution.
At the moment, he said there is no industry wide knowledge of Islamic wealth management and there is a need for experts in this area.
He said Labuan IBFC expects the number of foundations to grow by 100 this year compared to over 100 in 2013.
According to him, Labuan IBFC offers a wide range of wealth management tools suitable for high net worth individuals, family offices and other wealth managers needing a range of structures offering efficient wealth transfer, dynastic planning and inheritance management.
Under the 2010 law, he said Labuan is now one of the few common law jurisdictions offering investors a choice of common law trusts and civil law foundations, propelling the jurisdiction to the forefront of international wealth planning.