KUALA LUMPUR, Sept 23 (Bernama) -- Domestic Islamic banking industry players must be more aggressive in marketing their products and double efforts to achieve the target of controlling 40 per cent of the total banking assets by 2020, said Deputy Finance Minister Datuk Ahmad Maslan.
He expressed optimism that the Islamic banking market share, at 25 per cent currently, could be improved further this year, supported by strong industry growth and increase in confidence of non-Muslim individuals toward Islamic financial system which is seen as more resilient.
"We're on the right track (to achieve the target), but it needs to be intensified.
"The banking industry, takaful as well as Islamic institutions must move forward in a proactive manner in providing various products to the market," he told a press conference after officiating at a seminar on Islamic Finance industry themed "Between Understanding, Implementation and Attitude" here Tuesday.
The programme is a cooperation between the National Mosque, International Syariah Research Academy For Islamic Finance and Federal Territory Islamic Religious Department.
Ahmad also said that industry players must provide more diversified products and services that were up-to-date, creative and competitive so that consumers do not switch to other alternatives in the form of conventional products.
He also said several prevailing challenges such as getting the participation of Muslim scholars and complete understanding on Islamic banking by the public needed to be overcome to achieve the target.
Besides that, the challenge to draft and improve existing acts related to Islamic finance and always having an accurate Shariah-compliant standard also needed to be given attention, he added.
Up to 2013, the country's Islamic banking assets reached RM556.5 billion, with a growth rate of 19.4 per cent from 2004 to 2013.
Malaysia's Islamic banking industry is the third biggest in the world after Iran and Saudi Arabia.