Islamic banking in Malaysia

Islamic banking in Malaysia began in September 1963 when Perbadanan Wang Simpanan Bakal-Bakal Haji (PWSBH) was established.

PWSBH was set up as an institution for Muslims to save for their Hajj (pilgrimage to Mecca) expenses.

In 2006, Bank Negara Malaysia setup International Centre for Education in Islamic Finance (INCEIF) a dedicated University to provide skilled and certified personnel for Islamic Finance in Malaysia.

The university was established as part of the Malaysian Government's initiative to further strengthen the country's position as an international Islamic finance centre.

In June 2005, Dow Jones and Company of New York City and RHB Securities of Kuala Lumpur, teamed up to launch a new "Islamic Malaysia Index" — a collection of 45 stocks representing Malaysian companies that comply with a variety of Sharia-based criteria.