TheEdge
KUALA LUMPUR: The Securities Commission (SC) has given approval for three foreign Islamic fund management companies (IFMCs) to start operations in Malaysia.
The regulator said in a statement that the three are Aberdeen Islamic Asset Management Sdn Bhd, BNP Paribas Islamic Asset Management Sdn Bhd and Nomura Islamic Asset Management Sdn Bhd.
It said the three companies already have presence in the conventional asset management industry in Malaysia as part of the five licences issued under a special scheme announced in 2005 to broaden international participation in the local capital market.
SC said the three companies' interest to further expand their fund management business indicated their confidence in the Malaysian fund management industry, and reaffirmed the growing interest among international players to make Malaysia the global hub for Islamic fund and wealth management activities.
In granting the approval, SC pointed out that it had considered among other things the scope of operations that would be established by the three IFMCs in Malaysia, their fund management experience, brand value, expertise in various markets, geographical presence, and compliance and risk management capabilities.
"Despite the global slowdown, the coming on board of these three international players reflects the strong growth potential in niche areas like Islamic fund management," said SC chairman Datuk Seri Zarinah Anwar.
Meanwhile, Tokyo-based Nomura Asset Management Co Ltd president and CEO Atsushi Yoshikawa said the company planned to position Islamic fund management as one of its important strategies, adding that the establishment of Nomura Islamic Asset Management would enable it to provide a wide range of products and services to Asia and the Middle East.
"We are very pleased to be awarded a licence for Islamic fund management in Malaysia. BNP Paribas Investment Partners is firmly committed to further develop its existing Islamic investment capabilities," said Vincent Camerlynck, global head of business development and member of the executive committee of BNP Paribas Investment Partners in Paris.
Aberdeen Asset Management Sdn Bhd manging director Gerald Ambrose said: "We're delighted that our application for an Islamic fund management licence has been approved as this enables us to expand into an important new area. The domestic Islamic finance sector has been growing rapidly."
Others who have been approved to establish operations are Kuwait Finance House (Malaysia), DBS Asset Management, CIMB-Principal Asset Management, Global Investment House and Reliance Asset Management.
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