SINGAPORE - Malaysia's largest lender Maybank on Friday announced plans to expand its Islamic finance business in Singapore and Indonesia to tap the markets' demand for such services.
In Indonesia, home to the world's largest Muslim population, the bank will open at least one new branch a week to increase its network from 290 to 450 eventually, Maybank chief executive Abdul Wahid Omar said.
The lender is also planning to expand its Islamic services in Singapore, whose population is 13 percent Muslim.
Muslims from around the world also live and work in Singapore or use it as a regional business hub.
Maybank is determined to become "the number one Islamic bank in ASEAN," Abdul Wahid said, referring to the 10-member Association of Southeast Asian Nations.
Islamic banking fuses principles of Islamic law, known as Sharia, and modern banking. Islamic funds are banned from investing in companies associated with tobacco, alcohol or gambling.
The Sharia finance industry, which abides by religious laws that prohibit the payment and collection of interest, is a booming business, which Moody's Investors Service estimates has a market potential of $5 trillion.
In Malaysia, Maybank had Sharia-compliant assets worth $10.67 billion in 2009, placing it among the top 20 in the world.
Bank Melli Iran is the global leader in Islamic finance with Sharia-compliant assets of $59.62 billion.
Maybank is aiming to break into the world's top 10 Islamic finance centers, Abdul Wahid said.
"The growth of Islamic banking has typically been double that of the conventional (banking industry) and we have seen that in Malaysia, we have seen that in Indonesia certainly," he said.
"Globally, we can therefore expect a double digit growth in Islamic banking."
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