Malaysian Islamic finance receives global attention
In its fifth year, the 2025 theme 'Innovating Islamic Finance: Unlocking Global Investment Potential', brought financial leaders, Shariah scholars, and investors to discuss cross-border capital flows, innovation in syariah-compliant offerings, fintech developments, and investing opportunities in Islamic capital market.
Bursa Malaysia CEO Datuk Fad'l Mohamed in his welcome remarks said, 'Islamic finance is fast asserting its global prominence, reshaping how markets align financial returns with ethical values. As investor expectations shift, Malaysia must strengthen its position through broader offerings, deeper connectivity and inclusive digital access. At Bursa Malaysia, we support Malaysia's leadership by strengthening market infrastructure, expanding reach and driving innovation across syariah-compliant product segments. In addition, we believe the future must be shaped through collaboration and that is why today's Invest Shariah Conference matters. It brings together diverse perspectives to spark new ideas that will help shape the next chapter of Islamic capital markets.'
CGS MY CEO Azizah Mohd Yatim said, 'Malaysia has an established, globally recognised framework and end-to-end ecosystem for Islamic capital market. We also have the depth and breadth of syariah products, assets and instruments to 'export' our products and solutions regionally and globally. Islamic capital market and syariah instruments provide a fundamental, value based approach that investors and businesses can trust. This is especially important in today's environment, and their growing demand is proof of the propositions.
'CGS MY currently offers 10 Islamic products, with more in the pipeline. This year, we launched several market firsts, amongst which was access to fractional share trading on Bursa Malaysia for the first time. Via our UP trading platform, investors can invest in the Exchange's top 30 stocks in the FBM KLCI index, of which at least 70% are syariah-compliant stocks. Last month, CGS MY became the first broker in Malaysia to launch the Islamic Equity Linked Investment Notes and Islamic Autocallable Equity Structured Investment Notes structured products for sophisticated investors. In the coming months we will be rolling out Islamic Repurchase Agreement product in Malaysia and ESG Margin Financing-i in Singapore and Indonesia. Through accessible, investor-friendly innovations, we aim to make syariah investing more inclusive and impactful for a broader segment of investors.'
Globally, 80% of the Islamic finance industry assets remain concentrated in five markets: Iran, Saudi Arabia, Malaysia, the United Arab Emirates, and Kuwait. The industry continues to expand, with global assets projected to increase to US$7.5 trillion (RM32 trillion) by 2028, up from US$5.5 trillion in 2024, underscoring its global relevance and prominence.
Malaysia remains ahead in Islamic capital market with RM2.6 trillion in Shariah assets, making up 63% of total market by end-2024. The country also holds the world's largest sukuk market share at 36%, and over 80% of companies listed on Bursa Malaysia are syariah-compliant.
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