New RM100b EPF fund set to boost Islamic finance in M'sia

Kuala Lumpur

MALAYSIA'S Islamic finance market is set for a much-needed boost when the country's largest pension fund launches a RM100 billion (S$33.5 billion) Islamic fund in January, offering a potential boon for asset managers.

The Employees Provident Fund's (EPF) syariah-compliant pension plan opened to acclaim this week with Malaysians lining up outside its offices to invest.

The allocation represents about 15 per cent of the EPF's total investments of RM681.7 billion as at March.

Having a standalone pension fund of that size is a rarity in Islamic finance, even for majority- Muslim Malaysia, and it is expected to draw interest from foreign asset management firms with homegrown players also upbeat about t…