MALAYSIA’s two remaining standalone foreign Islamic banks, which have struggled to gain market share in the highly competitive Islamic banking industry for many years, made losses last year amid the Covid-19 pandemic. Many in the industry question the ability of Kuwait Finance House (Malaysia) Bhd (KFHM) and Al Rajhi Banking & Investment Corporation (M) Bhd (ARBM) to survive over the long term and believe that merger and acquisition (M&A) options or an exit could be forthcoming.