Malaysia hopes to attract start-ups in the Islamic space with a comprehensive framework governing the Islamic digital economy which will cover different elements including Shariah compliant venture capital funding.
To be formulated by Malaysia Digital Economy Corporation (MDEC) in collaboration with the Department of Islamic Development Malaysia (JAKIM) and Hall Amanie, the framework could lead the way in creating a holistic ecosystem for Islamic-focused start-ups and Islamic venture capitalists.
IFN Fintech understands that, apart from promoting Islamic venture capital funding structures to position Malaysia as a soft landing for regional Islamic investments in start-ups, the framework will also look at designing a Shariah certification process for Islamic digital content or product application (with the assistance of JAKIM).
“At present, there is a lot of start-ups coming in to develop products and solutions specifically for the Islamic market,” said MDEC CEO Yasmin Mahmood. “We hope to attract many more start-ups from all over the world to come here and develop the solutions out of Malaysia to serve the global market.”
The framework, to cover Halal and Shariah compliance processes, funding and financing mechanisms, Islamic digital economy and Halal business operation structures, will be introduced in the first quarter of 2018.