Talks could strengthen Islamic Finance in Malaysia.

World Bank and International Finance Corp (IFC) officials arrive this week (10 May) in Malaysia to discuss the establishment of an Islamic financing facility for green technology.

Discussions with Bank Negara and the Ministry of Energy, Green Technology and Water could create a suitable model to compliment an Islamic-compliant US$200 million fund. This would be the first in Asia to focus on the environmentally-friendly sector.

In International Monetary Fund (IMF) and World Bank spring meetings last month, the IMF reported on Malaysia's GDP growth this year of 5.7%, including key targeted areas of oil and gas, electrical and electronics production, agriculture, tourism and financial services.

Second Finance Minister Ahmad Husni Hanadzlah said the move followed the strengthening of US-Malaysia economic relations, after the Prime Minister Datuk Seri Najib Tun Razak's visit to the US recently.

Malaysia's New Economic Model aims to provide opportunities for US companies in various sectors, including services, research and knowledge-based industries, where energy-savings and efficiency could be an outstanding feature.

Iran reportedly also wanted to increase its investment in Malaysia, especially in Islamic banking and finance. The Egyptian Minister of Investment, Mahmoud Mohieldin, expressed his interest on collaborating with Malaysia in Islamic finance.

from Ae Li Qien, Kuala Lumpur Office

(Image courtesy of ©iStockphoto.com/John Wohlfeil)