Tutorial 1 - MBA4013

​History of the Establishment and Development of Islamic Banking in Malaysia

​Asni, F. (2019). History of the Establishment and Development of Islamic Banking in Malaysia. International Journal of Academic Research in Business and Social Sciences, 9(6), 305–315.

Multiple Choice

At the institutional level, the Lembaga Urusan Tabung Haji (LUTH) now known as Lembaga Tabung Haji (LTH) was established in

• 1966

• 1967

• 1968

• 1969

Open Ended

The National Steering Committee report on Islamic banking in Malaysia outlines two fundamental principles that should be implemented in the operations and practices of Islamic banking. These principles are ....

Multiple Choice

BIMB was incorporated as a company under the Companies Act 1965 on 1 March ____

• 1981

• 1982

• 1983

• 1984

Poll

On 6 November 2017, MBSB Bank Berhad was established which is the 4th Islamic bank in Malaysia. MBSB Bank Berhad is formerly known as ........

• Malaysia Building Society Berhad

• Asian Finance Bank Berhad

​General knowledge on Islamic financial system in Malaysia

You may search the internet for the answers. :) ​

Multiple Choice

Below are the subsidiaries under Tabung Haji EXCEPT

• TH Plantations Berhad

• BIMB Holdings Berhad

• TH Hotel & Residence Sdn Bhd

• TH Telco Sdn Bhd

​https://www.tabunghaji.gov.my/ms/korporat/direktori/subsidiari-th

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​TH Subsidiaries

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Early development of IFS in Malaysia

(The Establishment of Pilgrims Fund Co-operation)

The early effort in developing the Islamic financial sector services in Malaysia begins with the birth of the Pilgrims Fund Corporation or better known as ‘‘Tabung Haji’’.

Akram Laldin, M. (2008), "Islamic financial system: the Malaysian experience and the way forward", Humanomics, Vol. 24 No. 3, pp. 217-238. https://doi.org/10.1108/08288660810899377

Second phase of development

Establishing Islamic financial institution in Malaysia

The move begins with the recommendations from several conferences and meetings which has prompted the government to establish a National Council which comprise of 20 experts in the field in the year 1981 to study the idea of establishing Islamic financial institution in Malaysia.

Akram Laldin, M. (2008), "Islamic financial system: the Malaysian experience and the way forward", Humanomics, Vol. 24 No. 3, pp. 217-238. https://doi.org/10.1108/08288660810899377

Multiple Select

Islamic financial institutions in Malaysia can be divided into

• Full-fledged Malaysian Islamic banks

• Full-fledged Foreign Islamic banks

• Islamic subsidiary

• Islamic windows

Open Ended

What is the difference between full-fledged Islamic banks, Islamic subsidiary and Islamic window?

full-fledged Islamic banks, Islamic subsidiary, and Islamic window

• Islamic banking windows are simply defined as special facilities offered by conventional banks to provide Islamic banking services to customers who wish to deal with Islamic banking.

• Islamic banking subsidiary is defined as Islamic banking products and services offered by subsidiaries of conventional banks, but the operation and management of the two are clearly separated

• Full-fledged Islamic banks are either stand-alone domestic banks (e.g. Bank Muamalat) or subsidiaries of foreign Islamic parents (e.g. Kuwait Finance House).

EmirHidayat, Sutan, and Khalid Mohamed Al-Khalifa. "Islamic Banking windows Vs Islamic Banking Subsidiary: Educators’ Opinion In Bahrain." International Journal of Pedagogical Innovations 4, no. 02 (2016); Ariff, Mohamed. "Islamic banking in Malaysia: The changing landscape." Institutions and Economies (2017): 1-13.

Developments of Islamic capital market (ICM)

• The creation of Islamic money market and capital market is another landmark development in the area of Islamic finance in Malaysia.

• A wide range of instruments has been developed to facilitate the effective management of liquidity and funding by the Islamic financial institutions.

• This has facilitated the smooth flow of funds in the Islamic financial system

Akram Laldin, M. (2008), "Islamic financial system: the Malaysian experience and the way forward", Humanomics, Vol. 24 No. 3, pp. 217-238. https://doi.org/10.1108/08288660810899377