Malaysia is without a doubt on the track of becoming a global centre for the Islamic finances. This is additionally fueled by the fact of the consistent economic growth which is projected by the development of the industry. The latter is undoubtedly set to achieve further growth as a result of the international dimensions that it’s starting to acquire.
Currently, Malaysia is for sure one of the most stabilized Islamic countries in addition to being persistence in its policies (Also see How tax benefit the foreigners to invest in Malaysia). There is a dull domestic market consisting of approximately 15 million Muslims. Furthermore, the economic output per head of the population is between three and four times of what the average for the developing world which is rather impressive and self-determining at the very lease. What is more, the country has a great location which definitely going to attribute to these goals which do not seem far-fetched at all. Hence, starting a business in Johor Bahru is something worth consider.
Indonesia’s shaky and Islamic laws
Malaysia’s neighboring country, Indonesia is a country with the majority of Muslims in the entire world. It has about 200 million Muslims. However, the legal system, for political reasons established based on the colonial law model set forth by the Dutch, is not friendly towards the investments coming from Muslims. This rather ironic, considering the fact that it’s the most Muslim-populated country in the world. However, Malaysians, on the other hand, are becoming extremely sophisticated and wealthy in their particular financial needs, which, on its part helps the institutions to develop comprehensive skills as well as capabilities which are used to expand their economy towards the outer countries.
Overly beneficial factors of fund management
Malaysia is also a big center for the fund management of Islam. According to a report issued by PWC, there are over 149 Islamic funds which are domiciled and particularly managed in Malaysia against about 131 in Saudi Arabia, which is a significant lead (Also see Agencies that provide funding for Malaysian start-ups). Kuala Lumpur is also accountable for about 0.6% of the world stock market total capitalization and that is relatively the same market share held by the developed countries of Norway and the Netherlands. Furthermore, the sharia-compliant securities are thoroughly listed on the Bursa Malaysia are three-quarters of the total. This is a sign for increased Islamic-centered economy development with rapid temps. However, the majority of domestic companies are rather small, which is also a positive tendency because the margin towards vast improvement is rather wide in general.