A RECENT survey conducted by Hong Leong Islamic Bank (HLISB) reveals that 65% of Malaysian Muslims exclusively prefer Shariah-compliant banking and investment products. The survey, which involved 690 Malaysian Muslims aged between 18 and 77, also highlighted a significant interest in Islamic wealth management solutions.
Despite a median monthly household income of below RM10,000 for most respondents, 47% of those surveyed are currently investing with the top three investment choices being Amanah Saham Nasional Bhd (ASB) funds, Tabung Haji savings, and gold commodities.
Malaysian stocks and high-income savings accounts closely follow these preferences.
However, there remains a perception that Islamic investment products offer lower returns compared to their conventional counterparts. HLISB is committed to challenging this notion by ensuring its Shariah-compliant solutions are competitive and deliver market-standard benefits and returns.
Hong Leong Islamic Bank CEO Dafinah Ahmed Hilmi noted the growing demand for Islamic banking products, noting that Muslims make up approximately 63.5% of Malaysia’s population.
“In Islamic banking, investments are not just about growing personal wealth; they form a vital component within an Islamic wealth management ecosystem that addresses the creation, accumulation, distribution, preservation, and purification of wealth.
“Built on Islamic values and Shariah principles, this approach promotes altruism and social responsibility, ensuring that risks and profits are shared between those in need and those with excess,” she said.
The survey also revealed that 77% of Malaysian Muslims do not have a documented financial plan, despite 84% expressing a desire to achieve wealth. This underscores the importance of a comprehensive Islamic wealth management strategy in educating individuals on building a financial future aligned with Islamic principles.
HLISB head of shariah Akmal Solihi Mohd Yazid pointed our the significance of adhering to Islamic principles in wealth management.
“With a team of dedicated Shariah experts and a proven track record in Islamic finance, we ensure that our tailor-made wealth solutions meet stringent Shariah guidelines while fulfilling the diversified needs of our customers.”
HLISB offers access to various award-winning Islamic funds, such as HL Dana Makmur and HL Dana Maa’rof, which have produced five-year annualised returns of 18.45% and 11.41%, respectively as of June 30, 2024. For those seeking shorter-term investments with lower risk, the bank’s Term Investment Account allows customers to start investing with as little as RM500 for tenures ranging from one to 12 months.
In its effort to enhance Islamic wealth management advisory services, HLISB has also launched a wealth management podcast, “Market Matters with HLB,” providing insights into investments and wealth management solutions.
Upcoming episodes will feature deep dives into Islamic wealth management with appearances by HLB brand ambassadors Lisa Surihani and Alif Satar. – Aug 15, 2024
