Malaysian IBS oozes financial inclusion

The Malaysian financial sector is receiving a boost from newly enacted consumer protection regulations and efforts to promote greater financial inclusion, the latter being an effort to provide lower-income and rural customers. Among these changes include more stringent transparency and disclosure regulations adopted by Bank Negara. Like conventional banks, Islamic banks have had a tendency to be more concerned with share-holder value and profits over providing greater access and more beneficial services to the entire population and maintaining a level of social responsibility. Malaysia has accelerated its ten-year Financial Sector Master Plan (FSMP) by issuing an Islamic banking license to the Kuwait Finance House, illustrating Malaysia's commitment to promoting global growth in this sector. The underlying rate of growth rate for Islamic banking has decreased sharply in the past year.