Countries taking their first steps into the world of Islamic finance should focus on schemes that provide alternative sources of funding to small and medium-sized enterprises (SMEs), according to Muhammad bin Ibrahim, a deputy governor at Bank Negara Malaysia.

Ibrahim, speaking at a conference in Mauritius, encouraged policy-makers in the region to "start where it matters most" and "embark on initiatives that could assist the low and middle income groups".

This, he said, could be achieved by