Given the country’s high savings rate, the Securities Commission (SC) of Malaysia aims to position Kuala Lumpur as an Islamic wealth management hub, according to news agency The Sun Daily.

The new agency quoted Datuk Ranjit Ajit Singh, chairman of SC, saying that steps were being taken to create a certain number of intermediaries in the area are in process.

"This is the effort that we are collectively pursuing now. The strategy is that we are getting some firms to come in," Singh said.

According to the SC’s website, there were 19 licensed Islamic fund management companies in Malaysia as of July 2013.

Singh said currently, the Islamic fund management companies enjoyed tax incentives and the players must look for innovative solutions that could be offered to their clients.

Ranjit added that Malaysia’s assets under management of Islamic funds were expected to hit RM322 billion by 2020 from RM80 billion in the end of 2012, which represents 60% of total industry assets.

"As a result, Malaysia has emerged as the world’s largest sukuk market, accounting for almost 70% of global sukuk outstanding, Singh added.