“The ICM department will be the focal point for all ICM initiatives at Bursa. It will lead and coordinate Bursa’s efforts towards further developing the Malaysian Islamic Capital Market through support and commitment from market participants. The department has also been entrusted to seek and grow international Islamic investors’ participation in Bursa Malaysia,” Yusli Mohamed Yusoff, Chief Executive Officer of Bursa Malaysia said.
Yusli also said that the establishment of the new department is timely considering the impressive growth of the Islamic securities market. “The Islamic capital market complements our conventional businesses and Bursa intends to capitalise on this development. In addition, Malaysia has been recognised as the pioneer and at the forefront in Islamic finance. The setting-up of the ICM department within Bursa also complements the national interest in establishing Malaysia as the International Islamic Financial Centre as stipulated in the Capital Market Masterplan”.
Malaysia is the first Islamic country that has had its exchange demutualised and listed on the market. Bursa Malaysia was listed on 18 March 2005 and represents a single consolidated group comprising equities (main board, second board and Mesdaq market), derivatives and offshore markets. As at 31 May 2005, there are 816 counters which are Syariah compliant, representing the components of Bursa Syariah Index. This represents 82.5% of the total listed companies or 64.0% of the market capitalisation on Bursa Malaysia. In addition, Malaysia is the only country in the world that offers a holistic set of ICM infrastructure ranging from products, stockbrokers, trust funds and debt securities (bonds) for both onshore and offshore markets.
The ICM department, which operates under the ambit of the Exchanges Business Unit of Bursa Malaysia, is headed by Dr Azmir Agel, who is also the Head of Offshore Market. Dr Azmir will be responsible for the development of both the business and services of Bursa Malaysia’s onshore and offshore Islamic capital markets.