PETALING JAYA, Oct 11 — The introduction of new Shariah-compliant investment products in 2015 will provide opportunities for investors in financing entrepreneurial activities but more funds need to be given to public universities, an academic said.

International Islamic University (IIUM) Harun M. Hashim Law Centre director Prof Dr Ainul Jaria Maidin said the public universities could play a bigger role in Islamic finance skills-building.

She said it was time for the government to restructure the existing public universities and educational institutions involved in Islamic finance training under one umbrella to give more impetus to the education sector.

“This is one of the ways that will boost Malaysia’s role as an international Islamic finance sector,” she said.

She said such an umbrella organisation would help eliminate unnecessary competition.

Wisdom Management consultant Sherin Kunhibava said the Investment Account Platform (IAP), especially with high net worth individuals targeted, “is a move to increase the market share of Islamic banking”.

She said it was a new idea in line with the Islamic Financial Services Act.

“It encourages equity-based instruments and investments instead of debt-based, which a lot of Islamic banking is based on. It gives more options for people to venture into investment,” she said.

“Equity-based accounts are encouraged. The incentives given will ensure their profits for the next three years are non-taxable."

The new Shariah-compliant investment products in 2015 are intended to provide opportunities to investors in financing entrepreneurial activities.

IAP will provide opportunities to investors in financing entrepreneurial activities and developing viable SMEs.

At the same time, it will be a platform to attract institutional and individual investors including high net worth individuals to invest in the Islamic financial market.

Initially, IAP will be implemented with a start-up fund of RM150 million.

Currently, the Malaysian Islamic finance accounts for 25 per cent of total assets is in the banking system.

Internationally, Malaysia remains the largest sukuk market, accounting for 60 per cent of the global market share.

To promote investment in IAP, the government proposes individual investors be given income tax exemption on profits earned from qualifying investment for three consecutive years.

The government intends to boost domestic sukuk and bond issuance and trading and proposes the government securities and government investment issues be listed and traded in Exchange Traded Bond and Sukuk (ETBS).

The ETBS was introduced in January 2013.

In addition, expenses incurred in the issuance of sukuk are given deduction from year of assessment 2003 until year of assessment 2015.

Is is proposed that deduction for expenses incurred in the issuance of sukuk based on Ijarah and Wakalah principles be extended for another three years until year of assessment 2018.