—For the past 3 decades, the Malaysian Islamic
banking sector has been growing rapidly with an average of
18% growth per annum in terms of assets since 2000. As at
2013, Malaysia continued to record substantial achievement
with a total asset of RM426.16 billion which represent about
13% of the total global Islamic banking assets, behind only to
Iran and Saudi Arabia. However, if compare to conventional
banking sector in terms of assets and customers size, the
Malaysian Islamic banking sector is considered at its infancy
stage. This is mainly due to the late establishment of Islamic
concept into the banking system. Although the general
awareness towards Islamic banking in Malaysia is considered at
acceptable level, in terms of assets, financing and deposits the
Islamic banking sector only captured about 13%-14% of the
total banking markets share which is still far fetch from the
conventional banking sector. Nevertheless, the consumer
market still provides great opportunity for the Islamic banks to
target on for more profitability. Therefore, Islamic banks
should formulate strategies to educate and attract more
consumers to use Islamic banking products. The objective of
this short paper is to discuss on the sustainable growth of the
Islamic banking consumer market in Malaysia in order to
identify a research gap. The research methodology is based on
analytical literature review. It is found that lack of studies was
conducted on customer perceptions. In the conclusion, this
paper strongly recommended more empirical studies on
customer perceptions towards Islamic banking in Malaysia
should be conducted immediately.
—Islamic banking, consumer market,
sustainable growth, customer perceptions.
Ching Wing Lo is with Labuan Faculty of International Finance,
Universiti Malaysia Sabah, Labuan International Campus, W.P. Labuan,
Malaysia (e-mail: firstname.lastname@example.org).
Chee Seng Leow is with IIC University of Technology, Phnom Penh,
Cambodia (e-mail: email@example.com).
Cite: Ching Wing Lo and Chee Seng Leow, "Islamic Banking in Malaysia: A Sustainable Growth of the Consumer Market," International Journal of Trade, Economics and Finance vol.5, no.6, pp. 526-529, 2014.