Malaysia is fast becoming the global hub for Islamic fintech. Utilising its burgeoning Islamic financial sector and governmental support to expand the digitalisation of the economy, an ecosystem is being carved out for fintech start-ups to flourish.
Private sector initiatives have been accompanied by the government acting as an enabler, with its Shared Prosperity Vision 2030 including Islamic finance and the digital economy as key pillars. More sector-specific, a fintech academy has been established, while fast-track visas were greenlighted for new and established entrepreneurs to come to the country.
Regulations are also keeping pace with global developments, with Bank Negara Malaysia, the central bank, approving four fintech firms as participants in a regulatory sandbox in 2017, and granting the first Islamic fintech crowdfunding license. Earlier this year, BNM’s Shariah Advisory Council permitted the use of electronic money as a payment instrument.
In other related areas, the Malaysian Digital Economy Corporation (MDEC) has developed an Islamic digital economy guide, or Mi’yar, to serve as a reference for start-ups, venture capitalists and other supporting players in Islamic technology that wish to explore opportunities in the sector.
To find out more about how Malaysia is driving Islamic fintech, read the full article here.
This article is part of a sponsored series by the Malaysia Digital Economy Corporation (MDEC). You can download MDEC’s Islamic Fintech Report 2019 from here: https://mdec.my/news/mdec-islamic-fintech-report/
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