The Muamalat Newsletter Vol.1 2023

FEM Newsletter | June 2023 54 Commission, Bank Negara Malaysia, and the Malaysia Digital Economy Corporation (MDEC), are responsible for overseeing the financial sector and ensuring compliance with regulations. This has helped to build investor confidence and attract foreign direct investment (FDI) into the country. Economic Development inMalaysia Economic development is essential for the growth and prosperity of Malaysia. The country has made significant progress in the past few decades, with a strong focus on industrialization, infrastructure development, and technological advancement. One example of this is the establishment of the Multimedia Super Corridor (MSC), which has attracted numerous multinational companies to Malaysia and contributed to the growth of the country’s information and communication technology (ICT) sector. In Malaysia, financial planning and economic development are both critical components of the country’s growth strategy. Malaysia is a developing country that has made significant progress in economic development over the past few decades. The country has transitioned from an agricultural-based economy to a manufacturing and services-based economy. Malaysia has also made significant investments in infrastructure development, including highways, ports, and airports, to support its economic growth. Economic development in Malaysia has also been supported by the government’s efforts to attract foreign direct investment (FDI). The government has implemented various policies and initiatives to attract FDI, such as the establishment of special economic zones, tax incentives, and streamlined regulations. These initiatives have contributed to the growth of various industries in Malaysia, such as manufacturing, services, and tourism. Malaysia is an excellent example of a country that has leveraged financial planning to support its economic development. Over the past few decades, Malaysia has experienced significant economic growth, driven by investments in infrastructure, manufacturing, and service sectors. In this section, wewill discuss how financial planning has supported Malaysia’s economic development and explore specific examples of financial planning in Malaysia. 1. Investment in Infrastructure: One of the key factors driving Malaysia’s economic development has been its investment in infrastructure. TheMalaysiangovernment has made significant investments in building new highways, ports, airports, and other critical infrastructure projects. These investments have enabled Malaysia to attract foreign investments, expand its manufacturing and service sectors, and improve connectivity within the country. The Malaysian government has used financial planning to manage these infrastructure investments, including through the issuance of bonds and other financing mechanisms. 2. Promotion of Small and Medium- Sized Enterprises: Another important factor driving Malaysia’s economic development has been its promotion of small andmedium-sized enterprises (SMEs). The Malaysian government has implemented various policies and programs to support SMEs, such as providing access to financing and offering tax incentives. Financial planning has played a crucial role in supporting these initiatives, as SMEs often face significant financial constraints that can limit their growth potential. By providing financing and other resources, financial planning has enabled SMEs to expand their operations and create new job opportunities. 3. Expansion of the Islamic Finance Industry: Malaysia has also become a leading player in the global Islamic finance industry, which has grown rapidly over the past few decades. Islamic finance is a financial system based on Islamic principles that prohibit interest-based transactions and promote risk-sharing and asset- backed financing. The Malaysian government has implemented various policies and programs to support the growth of the Islamic finance industry, such as offering tax incentives and establishing a regulatory framework. Financial planning has played a critical role in supporting the growth of Islamic Finance Industry. To support financial planning and economic development in Malaysia, the government has also implemented various policies and initiatives. One of the key initiatives is the Malaysia Digital Economy Blueprint (MyDIGITAL). MyDIGITAL aims to accelerate Malaysia’s digital economy growth by creating a comprehensive ecosystem to support digital adoption, promoting digital entrepreneurship, and creating a skilled workforce. Another critical initiative is the 12th Malaysia Plan, which is a five-year development plan that outlines the government’s vision and strategies for economic growth. The plan