Focus on applied research Research is also an important investment for long-term competitiveness of the industry and is a key driver for greater innovation. Research institutions together with the industry must continuously strive towards introducing innovative solutions which will add vibrancy and diversity to the market. Joint research initiatives should extend beyond geographical boundaries, with cross-border initiatives and convergence of ideas. Research by academic faculties and research agencies can also contribute to the knowledge repository of Islamic finance. In addition to research that have been issued by universities in Malaysia, The International Shariah Research Academy (ISRA) has been established as a dedicated international agency for applied research in Islamic finance. Further in-depth research on contemporary Shariah issues relating to risk mitigation, liquidity management and hedging would facilitate the generation of new ground-breaking developments in Islamic finance. Greater involvement of the industry is essential not only to provide funding support, but also to give perspectives that contribute to the implementation of the research output. The launch of IBFIM’s flagship programme today – the Islamic Finance Qualifications Framework and Progression Route – is part of this strategy for upgrading the skills and competencies of the existing talent in the industry. It is an innovative training framework that provides a progressive structured route to the acquisition of the relevant knowledge for the different levels throughout the career of the workforce in the industry. Successful completion of the comprehensive series of programmes would lead to qualifications at three different levels.

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.