Malaysian Islamic banks confident on new competition

Bankers see additional licenses resulting to wider array of syariah-based financial services as opportunities for expansion.

The country’s existing Islamic banking players remain unperturbed by the upcoming competition in the form of more licences to be issued for world-class Islamic banks and takaful operators.

CIMB Islamic Bank Bhd executive director and chief executive officer Badlisyah Abdul Ghani said the move would result in a greater variety of syariah-based financial services and products being offered to the public.

"This, of course, will bring about a more competitive range of products. The challenge for existing players is to continue to innovate and not lose ground here and look for expansion opportunities in the region," he told StarBiz.

OCBC Al-Amin Bank Bhd director and chief executive officer Syed Abdull Aziz Syed Kechik said: "This development is healthy not only for customers but also for the country as efforts continue towards collaboration with the international financial community to collectively shape the Islamic finance industry."

KFH Research Ltd said the players would have to further improve on products and services to retain market leadership.

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