Malaysia's ICM hits RM2.6t, makes up 63% of total market
MALAYSIA'S Islamic capital market stood at RM2.56 trillion as at end-April 2025, representing 63% of the country's total capital market size of RM4.04 trillion.
Bursa Malaysia Bhd CEO Datuk Fad'l Mohamed (picture) said the strength of Shariah investing continues to underpin Malaysia's broader market performance, with key indicators showing consistent growth.
'As at end-July, Shariah market capitalisation totalled RM1.3 trillion, accounting for 66.1% of the exchange's total market capitalisation of RM1.9 trillion,' he said.
He added that Shariah-compliant securities made up RM1.6 billion, or 64.4% of the average daily trading value (ADV), of RM2.4 billion during the same period.
Fad'l also noted that 860 out of 1,065 listed companies on Bursa Malaysia — or 81% — were classified as Shariah-compliant, reflecting the segment's broad and growing base.
'These are not merely statistics but a testament to the importance and continued relevance of Shariah investing in driving market participation and long-term value creation,' he said.
Malaysia's Islamic capital market (ICM) has long maintained a significant presence in the financial system, contributing 63.04% to the overall capital market as at end-2024. The ICM expanded 8.5% year-on-year (YoY), growing to RM2.63 trillion by end-2024 from RM2.43 trillion in 2023.
This growth was underpinned by both Shariah-compliant securities and sukuk, which recorded total market capitalisation of RM1.31 trillion and total outstanding amount of RM1.32 trillion, respectively.
The number of Shariah-compliant securities rose from 811 to 822 over the same period, accounting for 79.11% of the 1,039 listed securities on Bursa Malaysia. Their market capitalisation increased by 11.71% to RM1.31 trillion or 62.96% of the total market capitalisation by end-2024.
Effective April 2024, companies seeking listing on Bursa Malaysia are no longer required to submit applications to the Shariah Advisory Council SC (SAC) should they wish for their securities to be classified as Shariah compliant.
Instead, the securities of companies seeking listing on the Main Market, ACE Market and LEAP Market of Bursa Malaysia will be reviewed by the SAC for the purpose of determining their Shariah status, according to information at the Securities Commission Malaysia (SC) website.
The Shariah compliance review by the SAC will provide clarity and certainty to investors on the Shariah status of such securities — prior to listing on Bursa Malaysia — thus, enhancing investor confidence to invest in Shariah-compliant securities, it added.
This article first appeared in The Malaysian Reserve weekly print edition
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