Asia Financial Services

Brunei Darussalam has long identified Islamic finance as a sector that can be developed to its advantage, both to serve the banking needs of its domestic economy and as an avenue for economic development at the international level. To achieve these objectives, however, it will need to step up investments in human resources.

A recent announcement that plans to raise the capital requirement for insurance companies could be delayed beyond 2016 could give local and international insurers more time to focus on growth areas such as microinsurance and bancassurance.

The Thai banking sector experienced rapid growth in the first quarter of 2012 on the back of significant expansion of the economy as a whole, with most banks posting increases in profits and loans.

Confidence among players in Papua New Guinea’s (PNG’s) banking industry and the launch of new microfinance and mobile banking initiatives highlight the sector’s potential to grow amid the country’s natural resource-based surging growth. However, the Bank of PNG (BPNG), the central bank, remains concerned about increasing levels of liquidity.

Malaysia’s capital markets are in line for a boost, as the introduction of private pension funds is expected to create a significant funding inflow that will be directed towards various investment vehicles. This should also serve to take some of the pressure off the state’s retirement schemes.