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

Karen P. Y. Lai, Michael Samers

Research output: Contribution to journalArticlepeer-review

24 Scopus citations

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’, 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.

Original languageEnglish
Pages (from-to)405-424
Number of pages20
JournalPacific Review
Volume30
Issue number3
DOIs
StatePublished - May 4 2017

Bibliographical note

Publisher Copyright:
© 2016 Informa UK Limited, trading as Taylor & Francis Group.

Keywords

  • Development
  • Islamic finance
  • Malaysia
  • Singapore
  • governance
  • international financial centre
  • neoliberalization

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Sociology and Political Science

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