Zeti Akhtar Aziz: Talent development in Islamic finance over the next decade Keynote address by Dr Zeti Akhtar Aziz, Governor of the Central Bank of Malaysia, at the Launching of IBFIM’s Islamic Finance Qualification Framework & Progression Route (IFQFPR) “Talent development in Islamic finance over the next decade”, Kuala Lumpur, 14 December 2011. *  *  *  In a highly dynamic, rapidly changing and challenging environment, talent development for the financial services industry has become an even more important agenda to ensure that its growth and development is supported by the necessary skills and capabilities. This is particularly important for Islamic finance given that it has become the most rapidly growing segment in our financial system. With the increased pace of the internationalisation of Islamic Finance, this growth momentum is also taking place in several other jurisdictions. This current global financial crisis which has highlighted the importance that the growth of the financial sector should correspond with the growth of the economy and for risk management and governance practices to be strengthened to ensure its stability and sustainability has also prompted increased interest in Islamic finance. These are the very principles and foundations inherent in Islamic finance. Talent as a thrust for industry advancement The development of the Malaysian Islamic financial system, has now evolved our Islamic finance industry into a progressive, comprehensive and competitive component of the overall financial sector.

In terms of talent demand for the overall financial sector, it is anticipated that over the next 10 years, a workforce of about 200,000 employees would be required, which is an increase of 56,000 people from the current 144,000 employees. There will therefore be strong demand across the financial sector, particularly for specialised skills in high growth and niche areas such as wealth management, Shariah advisory, corporate finance and investment advisory services. BIS central bankers’ speeches  1  Human capital development as key growth area In Malaysia, several dedicated institutions for human capital development in Islamic finance have been established. Contributions by tertiary education institutions, training and research institutions, and private training providers have been important to the development of professionals and expertise in Islamic finance. There are now more than 5,800 students enrolled in Islamic finance related academic courses in Malaysian higher learning institutions. The International Centre for Education in Islamic Finance (INCEIF), established in 2006 to develop qualified professionals in Islamic finance, has now produced 265 Chartered Islamic Finance Professional holders; while approximately 2,000 students from more than 75 countries are currently enrolled at different stages of completion of the Islamic finance programs. In terms of industry training, IBFIM has to date trained 32 percent of the total Islamic finance industry workforce. Critical components in talent development strategies The vision moving forward for human capital development in Islamic finance is to ensure a steady stream of competent and versatile talent to support greater innovation and dynamism of the Islamic finance industry.