Malaysia intends to build on its already remarkable success as a centre for Islamic fund and wealth management, setting out a blueprint for action this year.

The federation - thrown together in the dying days of the British Empire in the 1960s - seeks to expand a capital market that is already worth a total of RM2.82 trillion.

The blueprint (as yet undefined) is to be set out by the Securities Commission Malaysia, according to a Government report about developments during 2015.

The strategy is expected to make the industry sturdier and will include, among others factors, a strengthening of the global capability of market intermediaries, an expansion of international 'connectivity' and the seizure of new market opportunities.

Malaysia accounts for just over than half of all outstanding sukuk issuance around the world (source: SCM). Sukuk is a form of loan instrument that complies with Shariah law by not charging interest. The size of the Islamic capital market grew 6.7% year-on-year to RM1.70 trillion in 2015. The market capitalisation of Shariah-compliant securities reached RM1.09 trillion in 2015, representing 64.1% of the total market capitalisation.

With some Muslim countries becoming more prosperous in recent years thanks to oil revenues and other things, and with the attendant growth of an affluent middle class, demand for Shariah-compliant products has grown. The market remains relatively small compared with the conventional capital markets, however.

The Muslim world lacks a single set of standards for Shariah-compliant finance. Some jurisdictions, such as Saudi Arabia and Kuwait, are seen as more conservative and restrictive on the subject of financial structures than Malaysia or Indonesia.