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Original Articles

The rise of Kuala Lumpur as an Islamic financial frontier

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Pages 1443-1453 | Received 11 Oct 2015, Accepted 17 Jun 2016, Published online: 16 Sep 2016
 

ABSTRACT

The rise of Kuala Lumpur as an Islamic financial frontier. Regional Studies. This paper examines Kuala Lumpur’s emergence as a prominent global Islamic financial centre. Its distance from the West and the Middle East offers a frontier positioning that facilitates new social practices from the integration of financial knowledge of Western world cities and Shariah authority claimed by Gulf cities. Based on primary data, the paper shows that transnational, transcultural alliances forged through skills of mediation and compromise among the city’s Islamic talents and Shariah scholars favourably connect separate economic and cultural spheres of knowledge.

摘要

吉隆坡兴起成为伊斯兰世界财经边境,区域研究。本文检视吉隆坡兴起成为全球着名的伊斯兰财经中心。其与西方和中东的距离,提供了能够促进不同于整合西方世界城市的财经知识和由波湾城市所宣称的伊斯兰教律的崭新社会实践的边境位置。本文根据原始数据,显示透过该城市的伊斯兰能人及伊斯兰教律学者的中介技术及妥协所打造的跨国、跨文化联盟,有利地连结了知识的个别经济及文化领域。

RÉSUMÉ

L’essor de Kuala Lumpur comme frontière de la finance islamique. Regional Studies. Cet article examine l’essor de Kuala Lumpur comme un important centre mondial de la finance islamique. Sa distance à partir de l’Ouest et du Moyen-Orient constitue une frontière qui permet de nouvelles pratiques sociales de l’intégration des connaissances financières des villes mondiales de l’Ouest et de la loi charia revendiquée par les villes du Golfe. Basé sur des données primaires, l’article montre que les alliances transnationales et transculturelles, scellés au moyen des compétences en médiation et en compromis parmi le vivier de talents islamiques de la ville et les érudits musulmans, relient favorablement les sphères économique et culturelle distinctes de connaissance.

ZUSAMMENFASSUNG

Der Aufstieg von Kuala Lumpur als Grenzraum für islamische Finanzen. Regional Studies. In diesem Beitrag wird die Entwicklung von Kuala Lumpur zu einem bedeutenden globalen islamischen Finanzzentrum untersucht. Ihre Entfernung zum Westen und Nahen Osten ermöglicht der Stadt eine Positionierung als Grenzraum, der durch die Integration des Finanzwissens westlicher Weltstädte und der von den Golfstädten beanspruchten Autorität in Fragen der Scharia neue gesellschaftliche Praktiken ermöglicht. Ausgehend von Primärdaten wird gezeigt, dass durch Vermittlungs- und Kompromissfähigkeit geschlossene transnationale und transkulturelle Bündnisse zwischen den Islamexperten und Scharia-Gelehrten der Stadt zu einer günstigen Verknüpfung von bisher getrennten wirtschaftlichen und kulturellen Wissensbereichen führen.

RESUMEN

El auge de Kuala Lumpur como frontera de las finanzas islámicas. Regional Studies. En este artículo analizamos el progreso de Kuala Lumpur como un importante centro financiero islámico del mundo. Su distancia del Oeste y Oriente Medio ofrece una posición fronteriza que facilita nuevas prácticas sociales gracias a la integración del conocimiento financiero de las ciudades occidentales y la autoridad de la sharia reivindicada por las ciudades del Golfo. A partir de datos primarios, en el artículo mostramos que las alianzas transnacionales y transculturales, forjadas mediante capacidades de mediación y compromiso entre los expertos islámicos y especialistas de la sharia de la ciudad, conducen a una conexión favorable de las esferas económicas y culturales del conocimiento antes separadas.

JEL:

ACKNOWLEDGEMENTS

The authors thank two referees and the editor for their comments. Special thanks to Dr Mohamad Akram Laldin (Executive Director, ISRA) and Dr Obiyathulla Bacha (INCEIF) for sharing their insights of the Islamic financial industry in Kuala Lumpur.

DISCLOSURE STATEMENT

No potential conflict of interest was reported by the authors.

Notes

1. O*NETS is an online occupational information network site providing detailed descriptions of work tasks and skills.

2. A branch of Islamic jurisprudence concerned with commercial matters.

3. Assets that are donated or purchased, so that they may be held in a trust as ongoing charity.

4. Based on t-tests, written/verbal communication (5.5 versus 5.2), interpersonal (5.7 versus 5.4) and Islamic financial/accounting skills (5.4 versus 5.1) were found to be significantly higher for older than for younger firms. Teamwork is also significantly different for larger than for smaller firms (5.4 versus 5.1). But the figures in parentheses also show that both groups reported means that are well over the neutral point of 3.0. Hence, these skills remain important for younger or for smaller firms.

 

Additional information

Funding

Funding from the National Science Foundation [grant number BCS-1261805] is gratefully acknowledged.

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