The rapid progress of the domestic Islamic financial system, reinforced by significant developments in the Islamic financial infrastructure, including the legal and Shariah infrastructure and the regulatory and supervisory framework, has strengthened the position of the Islamic financial system as an increasingly important component in meeting the changing requirements of the new economy. The Financial Sector Masterplan launched three years ago provides the strategic direction envisioned for the development of the Islamic financial sector looking beyond the near term and taking a longer-term perspective into the needs and requirements of the future. The strategies outlined in the Plan have emphasized the development of the respective building blocks of the various parts of the financial sector that need to be put in place to form the solid foundation on which sustainable future progress can be achieved. The expansion of the Islamic financial system in Malaysia has therefore taken place with attention given for the development of a comprehensive system. Towards a more diversified Islamic financial system At the onset of our journey in the development of a comprehensive Islamic financial system that is progressive, efficient, dynamic and sustainable, due attention was thus given to the development of the key structural components of the Islamic financial system, comprising the Islamic banking industry, the takaful industry and the Islamic money and capital markets. The intra-dependency of these key components creates the enabling environment for the Islamic financial system to effectively perform its role as an efficient conduit for mobilizing resources and channeling the funds to finance productive economic activity.
These initiatives would further strengthen the stability of financial institutions, laying the foundation for stronger financial system and economy in the longer term. To increase the efficiency of the payment system, the BOT has launched the Imaged Cheque Clearing and Archive System (ICAS), for Bangkok and its vicinity since February 2012. In addition, the Financial Consumer Protection Center (FCPC) was set up to provide information about the BOT, to receive consumers’ complaints regarding financial services, and to offer financial education to the public, all of which have been well received. Economic outlook in 2013 Looking ahead, risks to growth have declined on the back of firmer, if moderate, global recovery, and robust domestic demand which continues to be the main growth driver for the Thai economy. Private consumption would continue to benefit from the first-car tax rebate program as well as the reduction in personal income tax which would take effect this year. Furthermore, private investment continues to expand steadily on positive growth prospects, post-flood reconstruction in some parts of the manufacturing sector, and various government stimulus measures. Meanwhile, exports started to show signs of a broadbased recovery, and should pick up pace in the latter half of this year, lending an additional support to growth momentum as the effect of government’s stimulus wanes. Inflationary pressure meanwhile should remain contained.