The MIFC Executive Committee oversees the implementation of Malaysia's Islamic financial initiatives. Chaired by the Governor of Bank Negara Malaysia, the committee comprises officials from government agencies and regulators who work to promote Malaysia as a global Islamic finance center. The MIFC initiative was launched in 2006 and is supported by key Malaysian financial authorities and private sector partners to develop Islamic banking, takaful, sukuk issuance, and professional services in the country.

2. INTRODUCTION
• Chaired by the Governor of Bank Negara Malaysia, the
MIFC Executive Committee acts as a single coordinating
body to provide direction and ensure smooth
implementation and efficient delivery of all MIFC-
related initiatives.
• The committee comprises of top officials from relevant
Government agencies, financial and market regulators,
together with industry participants from the Islamic
banking, takaful and capital market community in
Malaysia.
• Membership to the Committee is based on
appointment by His Honourable Prime Minister of
Malaysia.

3. • On 14 August 2006 the Malaysia International Islamic
Financial Centre (MIFC) initiative was launched to position
Malaysia in the forefront of Islamic finance to capture one
of the fastest growing economic sectors.
• Chaired by the Governor of Bank Negara Malaysia
• The MIFC is supported by Bank Negara Malaysia, Securities
Commission Malaysia , Labuan Financial Services Authortiy
and Bursa Malaysia.
• The MIFC’s private sector partners include Islamic banks
and conventional banks with Islamic banking windows,
investment banks, brokers, lawyers, Shariah advisory firms,
Shariah scholars, accounting and tax advisers, ratings
agencies and takaful providers.
HISTORY

4. Objectives of Malaysian Islamic
Financial Centre (MIFC)
As one of the key
intermediation linkages
in the global market
place
MIFC have an important
role in accelerating the
process of bridging and
strengthening the
relationship between
the international
Islamic financial
markets and thereby
expand the investment
and trade relations
In promoting capital
and cross-border trade
flows between the
financial communities
of these regions.

5. ROLESOFMIFC To act as an investment gateway to the
region specialising in Islamic fund and
wealth management and as a takaful and
retakaful centre.
Significant developments in Malaysian
economic and Islamic financial industry.
To act as a centre for origination, issuance
and trading of Islamic capital market and
treasury instruments such as sukuk.

6. The MIFC initiative comprises a community network of the
country’s financial sector regulators, including :
Takaful
Securities Commission Malaysia
Bank Negara Malaysia (Central
Bank of Malaysia)
Re- Takaful
Capital Market Institution

7. Professional ancillary services companies
which are participating and working
collaboratively in Islamic finance
Human capital development institutions
Government ministries and agencies together
with industry participation from the banking
Labuan Financial Services Authority and Bursa
Malaysia (Kuala Lumpur Stock Exchange)

8. The MIFC Platform
• Diverse pool of global and domestic players in
islamic finance
• Wide range of innovative islamic financial
instruments
Comprehensive and
competitive islamic
financial market
• Over 60% of outstanding sukuk globally
• Pioneer in innovative structure
• Wide investor base
• Issuance facilitative framework
Sukuk hub
• Robust world class legal and regulatory framework
• Well-developed shariah governance
• Efficient dispute resolution mechanism for matters
islamic finance
Pioneer islamic
legal, regulatory
and shariah
infrastructure

9. The MIFC Platform
• Expertise in research and advisory
• Thought leadership in applied islamic
finance
• Islamic pool of high caliber professionals
Quality
human capital
development
infrastructure
• Strong economic fundamentals
• Supportive government policies
• Affordable cost of living
• Multilingual and educated workforce
Conducive
business
environment

10. Governance structure
• Executive Committee
The MIFC Executive Committee acts as a single coordinating body to
provide direction and to act collectively in the implementation of
recommendations.
Function of Executive committee
 as a body to review existing policies for the comprehensive and
coordinated promotion of the MIFC initiative,
 to align the roles and responsibilities of the respective parts of
Government and the industry for the development of the MIFC
initiative.

11. • Secretariat
The MIFC Secretariat functions as the working secretariat to the MIFC
Executive Committee (the Committee).
The MIFC Secretariat functions as the single contact point on Islamic finance
related matters, including the followings:
 Application to establish International Islamic Banking (IIB) and International
Takaful Operator (ITO)
 Application to establish International Currency Business Unit (ICBU)
 Immigration matters for foreign Islamic finance professionals and their
dependants
 Foreign equity ownership and tax related matters

12. CONCEPT OF TAKAFUL
• The principles of guarantee, derived from the word “Kafala”, is the
basis of Islamic insurance for example is Takaful.
• Takaful means that the majority guarantees the loss of the minority
for example the majority shares the burden of the unfortunate
minority via the pooling of funds.
• This form of co-operative insurance is already in existence in
several countries, permissible by Shariah.
• Takaful practice the concept of “Tabarru’” meaning donation, which
explicitly mentions that the money collected is to be used for the
purpose of assisting “fellow participants who require assistance
according to the terms agreed as long as these terms are not in
conflict with the Shariah”.

13. Takaful Companies
• AmFamily Takaful Berhad
• Etiqa Takaful
• Hong Leong Tokio Marine Takaful
• MAA Takaful Berhad
• Prudential BSN Takaful
• Sun Life Malaysia Takaful Berhad
• Takaful Malaysia

14. CONCEPT OF RETAKAFUL
• Retakaful is the Islamic alternative to the
reinsurance industry. In the conventional
insurance industry, an insurance company
reduces its risk of paying large claims by insuring
a portion of its risk with another insurance
company. The third party is called a reinsurer, and
it helps the insurance company in situations
involving natural disasters, widespread fires,
riots, and other major events that significantly
affect many policyholders at once.

15. RE-TAKAFUL COMPANIES
• ACR ReTakaful
• BEST RE
• MNRB Retakaful
• Munich Re Retakaful
• Swiss Re takaful

16. CONCLUSION
• Malaysia has succeeded in implementing a dual banking
system and has emerged as the first nation to have a full-
fledged Islamic system operating side-by side with the
conventional banking system. The aspiration to establish a
comprehensive Islamic banking and finance system has
created a spill-over effect to the non-bank Islamic financial
intermediaries which started to offer Islamic financial
products and services. Such institutions include the takaful
companies, the savings institutions for examples Bank
Simpanan Nasional & Bank Rakyat and the developmental
financial institutions for examples Bank Pembangunan dan
Infrastruktur Malaysia and Bank Pertanian.