By: Habibullah Khan, PhD
Omar K M R Bashar, PhD
Journal of Islamic Banking & Finance April-June 2009
Abstract
Islamic banking and finance has been expanding rapidly since its launch in the 1970s. The major market for the industry is typically the Middle East and it is gaining popularity in the UK, USA and Southeast Asia. Malaysia has the leading Islamic banking and finance industry in Southeast Asia while its neighbor Singapore is relatively a new market player. Singapore revised its regulatory framework and tax structure and gradually introduced various Shariah-compliant financial products in the last couple of years. This paper argues that despite having small domestic market and competition from Malaysia, Singapore can still position itself in a niche market in the region. Through its strategy of integrated financial and economic development, Singapore can create new opportunities for Islamic banking and related financial products in the region.
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