MALAYSIA: There is still a general lack of understanding among the public on financial planning and wealth management as an obligation for Muslims.
Tan Beng Wah, CEO of CIMB Wealth Advisors (CWA) said more Islamic financial planners and Shariah registered planners are needed to fill the void in the country.
According to Tan, there are currently only 300 registered practitioners in the field of financial planning advisory despite having about 4,000 qualified financial planning practitioners in the country, while there are only two companies registered to offer Islamic financial advisory services out of approximately 35 registered companies.
Tan attributed the lack of Islamic financial planners to low consumer demand as the public has yet to accept the concept of paying a fee for financial planning advice.
He said a good understanding of the Islamic concept of estate planning will help relieve unnecessary stress in terms of executorships, estate administration, trusteeship, custody and guardianship of their properties. CWA has been actively promoting Islamic estate planning services since its partnership with as-Salihin Trustee.
CWA currently has assets under management of more than RM4 billion (US$1.33 billion) with 26 of its 48 funds being Shariah compliant.
Tan said CWA’s Shariah compliant funds have twice the growth rate compared to its conventional funds.