A qualitative study on Islamic banking in Malaysia: issues, prospects and challenges

Abstract

The study examines Islamic banking industry in Malaysia and will reveal the issues, prospects and challenges in Islamic banking. Islamic banking industry is growing very rapidly in Malaysia whereby our government in its one of the key strategies in the Ninth Malaysian Plan is to develop Malaysia as an International Islamic Centre for Islamic banking and finance. The study concludes that there are some issues that need to be addressed; taken corrective action and Islamic banking industry as a whole need to gear themselves to be fully prepared to meet the challenges ahead globally as well as internally. This study also found that the prospects for Islamic banking industry in Malaysia is very bright due to strong government backing and support from Bank Negara Malaysia (BNM) plus the fact that Malaysia is currently an Islamic hub.