A wholly-owned unit of Singapore's DBS Bank and the Kuwait Finance House have been granted licences to set up Islamic fund management operations in Malaysia, a statement said on Monday.
DBS Asset Management's chief executive officer Deborah Ho said the new entity will structure and distribute Islamic asset management products across Asia "via synergies with DBS and DBS' Islamic Bank of Asia."
Malaysia's Securities Commission granted approval to the two in addition to CIMB-Principal Islamic Asset Management.
"The approval of these three companies will play a catalytic role in the internationalization of our Islamic capital market," The Business Times quoted commission chairman Zarinah Anwar as saying.
The commission is also evaluating funds from other leading companies to establish Islamic fund management operations in the country.
The interest shown by international players "reflects the global recognition of Malaysia's position as a centre of Islamic finance and enhances Malaysia's opportunity to be a leading Islamic fund and wealth management hub," Zarinah said in the statement.