Conceptualizing Islamic banking and finance: a comparison of its development and governance in Malaysia and Singapore

Lai, Karen P.Y.; Samers, Michael

Abstract

In response to the limited engagement with critical social science concerning the governance of Islamic banking and finance (IBF), this paper compares and conceptualizes the development and governance of IBF in Malaysia and Singapore. We argue that IBF governance in Malaysia and Singapore can be distinguished on the basis of ethnic politics, moral suasion, product demand, product innovation, and the character of state practices. Concerning the latter, we contend that the political economy of both countries can be characterized as broadly involving a ‘neoliberal-developmentalism’ (Liow, 2012), but we nuance this by positing a transition in Malaysia from a ‘semi-developmentalism’ in the 1980s to what we call an ‘Islamic and internationalising ordoliberalism’ beginning in the 2000s. In turn, the governance of IBF in Singapore involves a combination of neoliberal developmentalism, which nonetheless also entails some form of Islamic ordoliberalism.

Citation

Lai, K. P., & Samers, M. (2016). Conceptualizing Islamic banking and finance: a comparison of its development and governance in Malaysia and Singapore. The Pacific Review, 30(3), 405-424. https://doi.org/10.1080/09512748.2016.1264455

• Journal Article Type: Article
• Online Publication Date: Dec 21, 2016
• Publication Date: Dec 21, 2016
• Deposit Date: Aug 31, 2019
• Publicly Available Date: Nov 19, 2019
• Journal: Pacific Review
• Print ISSN: 0951-2748
• Electronic ISSN: 1470-1332
• Publisher: Taylor and Francis Group
• Peer Reviewed: Peer Reviewed
• Volume: 30
• Issue: 3
• Pages: 405-424
• DOI: https://doi.org/10.1080/09512748.2016.1264455