CEO of International Centre for Education in Islamic Finance (INCEIF), Daud Vicary Abdullah, said while the Islamic finance was proven to offer better value for financing, a higher participation from the private sector will reduce the government's share in the issuance of Sukuk every year.
"The private sector's participation is still very low, given the large size of corporates in the country. The government wants to reduce its' intervention to drive the market," he told a forum on Islamic Property Finance on Friday.
He said Malaysia is very advanced in terms of the legislation framework for the Islamic finance, which would enhance the footing of the sector in Asean - in line
with Malaysia's chairmanship of the grouping this year.
As Asean countries become more aware of the Islamic finance, Abdullah said he foresees more infrastructure projects in the region to be funded with Sukuk.
Daud Vicary said Malaysia is at least 50% more advanced than its strongest competitor, Bahrain, due to the existence of solid Shariah legal governance framework.
"Malaysia is very much the sukuk capital of the world. The Malaysian Islamic finance sector is also very strong as the central bank has an undivided attention paid on
the sector's betterment," he added.