Financial Services
From The Report: Sarawak 2015
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From large, multinational funds to local Malaysian banks, national and international players have historically been drawn to the state in large part by the opportunities available in financing its substantial oil, gas, timber and palm oil industries. Today, they are being drawn by the state’s major development plan, the Sarawak Corridor of Renewable Energy, and other mega-projects currently being implemented. A huge amount of capital investment will be required for the state to meet its development goals, and it is looking to source this in part by issuing conventional and Islamic bonds. Finance-related activity in Sarawak is likely to grow in importance and intensity over the coming years. While a great deal of work remains to be done in order for Sarawak to make good on its promise of development for everyone in the state, its increased visibility and popularity among investors and financiers, domestic and international, is a sure sign that it is headed in the right direction.

This chapter contains interviews with Wong Soon Koh, Minister of Finance II and Minister of Local Government and Community Development; and Rauf Rashid, Country Managing Partner, EY Malaysia.

Articles from this Chapter

Overview

Mega-projects will bring greater opportunities to Sarawak’s finance sector
OBG
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The financial services sector in Sarawak is an important and growing part of Malaysia’s financial world, with many national and international financial institutions heavily involved in the state’s development and investment programmes. From large, multinational funds to local Malaysian banks, these players have historically been drawn to the state in large part by the opportunities available in financing its substantial oil, gas, timber and palm oil industries, and by its stable economic…

Analysis

Better than the rest: The state is building a solid foundation for growth in Islamic finance and insurance
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The Malaysian government has worked to position itself as the world’s Islamic financial centre, with Sarawak now home to a variety of Islamic financial institutions as well. The federal authorities have largely achieved this through several major steps. In 2006 the government both established the Malaysia International Islamic Financial Centre and liberalised regulations on foreign issuance of Islamic bonds. Then, in 2013, it instituted the Islamic Financial Services Act 2013 (IFSA), focused on…

Interview

OBG talks to Wong Soon Koh, Minister of Finance II and Minister of Local Government and Community Development
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Interview:Wong Soon Koh How is Sarawak’s financial services sector evolving, given the state’s focus on other industries? WONG SOON KOH: The overall progress of all industries in the state will benefit the financial services sector as a whole, particularly with regards to banking, credit unions, real estate funds, insurance companies, investment funds houses, stock brokerages, and accountancy and finance companies. The economic activities in the state are becoming increasing vibrant and…

Interview

OBG talks to Rauf Rashid, Country Managing Partner, EY Malaysia
OBG
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Interview:Rauf Rashid What are the growth prospects for Malaysia’s Islamic banking industry? RAUF RASHID: We have come a long way since the Islamic Banking Act was introduced in 1983, going from having just one Islamic bank to many. We are also seeing rapid growth in countries such as Qatar, Turkey, Indonesia, Saudi Arabia and the UAE. These markets are expected to see their collective Islamic commercial banking assets reach about $1.6trn in 2018. Today, of the world’s total Islamic banking…

Interview

OBG talks to Rauf Rashid, Country Managing Partner, EY Malaysia
OBG
plus

Interview:Rauf Rashid What are the growth prospects for Malaysia’s Islamic banking industry? RAUF RASHID: We have come a long way since the Islamic Banking Act was introduced in 1983, going from having just one Islamic bank to many. We are also seeing rapid growth in countries such as Qatar, Turkey, Indonesia, Saudi Arabia and the UAE. These markets are expected to see their collective Islamic commercial banking assets reach about $1.6trn in 2018. Today, of the world’s total Islamic banking…

Analysis

SMEs in Sarawak set to receive greater support
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Small and medium-sized enterprises (SMEs) in Sarawak are on course for strong growth, as more tap into spinoff projects generated by increased investment in the state’s special economic zone, and federal and state governments urge SMEs to set up shop in Sarawak. While access to credit has been an obstacle to growth, some banks are now offering generous incentives and guaranteed, unsecured loans in an effort to boost the number of SMEs operating in the state. SMEs have long formed the backbone…