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Malaysian Reserve
4 days ago
- Business
- Malaysian Reserve
Malaysia's ICM hits RM2.6t, makes up 63% of total market
by AUFA MARDHIAH 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
Malaysian Reserve
07-08-2025
- Business
- Malaysian Reserve
Bursa Malaysia CEO: Islamic finance must evolve to stay competitive
KUALA LUMPUR — The growth of Islamic finance will be driven by greater connectivity across asset classes, geographies and generations – and not just by compliance – as a generational shift in investor demographics brings in younger, digital-native and value-conscious investors. Bursa Malaysia Bhd chief executive officer Datuk Fad'l Mohamed (picture) said today's investors are drawn to offerings that are digital-first, value-aligned and exposed to emerging digital asset classes, including tokenised instruments. 'These shifts call on all of us – exchanges, regulators, asset managers and scholars – to work together to ensure that Islamic finance stays relevant and competitive, not just in what it represents, but in how it evolves to meet the changing needs of the market and investors,' he said in his welcoming remark at the Invest Shariah Conference 2025 today. CGS International Securities Malaysia and Bursa Malaysia co-hosted the conference themed 'Innovating Islamic Finance: Unlocking Global Investment Potential'. Fad'l also added that Malaysia's Islamic capital market remains among the most developed globally, anchored by robust regulation, a credible shariah framework and a diverse base of issuers and investors. 'As at end-April 2025, Malaysia's Islamic capital market was valued at RM2.56 trillion, representing 63 per cent of the total domestic capital market size of RM4.04 trillion. He also said shariah market capitalisation stood at RM1.3 trillion or 66.1 per cent of the stock exchange's market capitalisation of RM1.9 trillion as at end-July. Fad'l also elaborated that shariah-compliant average daily trading value (ADV) reached RM1.6 billion or 64.4 per cent of the overall ADV of RM 2.4 billion, and 860, or 81 per cent of 1,065 Bursa Malaysia-listed companies were shariah-compliant. Global Islamic finance assets surpassed US$5 trillion last year, a 12 per cent rise from 2023, and a 43 per cent increase since 2020. By 2028, the industry is projected to reach US$7.5 trillion, reflecting the rising demand for shariah-compliant finance across markets and asset classes. CGS Malaysia CEO Azizah Mohd Yatim said Malaysia has an established, internationally recognised framework and end-to-end ecosystem for the Islamic capital market, with depth and breadth of shariah products, assets and instruments to 'export' its products and solutions regionally and globally. 'Islamic capital market and shariah 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 proposition,' she said. 'CGS Malaysia has become 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 products in Malaysia and Environmental, Sustainable and Governance (ESG) Margin Financing-i in Singapore and Indonesia,' she added. Globally, 80 per cent of the Islamic finance industry assets remain concentrated in five markets: Iran, Saudi Arabia, Malaysia, the United Arab Emirates and Kuwait. Meanwhile, the full-day conference featured panel discussions and fireside chats covering the strengthening of capital flows between Asia and the Middle East, the rise of private equity and venture capital in Islamic capital markets, and the role of digital transformation in reshaping shariah-compliant investment products. Speakers also explored how the Islamic capital market can serve as a driver of inclusive growth, highlighting emerging opportunities in fintech, multi-asset investments, ESG integration, and sukuk issuance. — BERNAMA
New Straits Times
07-08-2025
- Business
- New Straits Times
Malaysia's Islamic capital market hits RM2.56 trillion
KUALA LUMPUR: Malaysia's Islamic capital market stood at RM2.56 trillion as at end-April 2025, making up 63 per cent of the country's total capital market ofRM4.04 trillion, according to Bursa Malaysia chief executive officer Datuk Fad'l Mohamed. He said the country's Islamic capital market remains amongst the most developed globally, anchored by robust regulation, a credible syariah framework and a diverse base of issuers and investors. Fad'l added that syariah-compliant investments continued to dominate, with syariah market capitalisation reaching RM1.3 trillion, accounting for 66.1 per cent of the total market cap as at end-July. Meanwhile, syariah-compliant average daily trading value (ADV) reached RM1.6 billion or 64.4 per cent of the overall ADV of RM2.4 billion. So far, a total of 860 or 81 per cent out of 1,065 Bursa-listed companies were syariah-compliant. "These are not merely statistics but a testament to the importance and continued relevance of syariah investing in driving market participation and long-term value creation," Fad'l said in his speech at the Invest Shariah Conference 2025. Globally, 80 per cent of the Islamic finance industry assets remain concentrated in five markets, namely Iran, Saudi Arabia, Malaysia, the United Arab Emirates and Kuwait. Fad'l said global Islamic finance assets surpassed US$5 trillion in 2024, up 12 per cent from 2023 and a 43 per cent increase since 2020. He said the industry is projected to reach US$7.5 trillion by 2028, reflecting rising demand for syariah-compliant finance across markets and asset classes. "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," he added. Beyond equities, he said Malaysia's sukuk market is both mature and evolving, with applications now extending to environment, social and governance (ESG)-linked issuances, sovereign mandates and structured infrastructure financing. However, he said past successes cannot guarantee future relevance. "Leadership must be renewed through stronger cross-border linkages, broader product offerings and digital infrastructure that enables greater inclusion and accessibility," he added. Fad'l said the future of Islamic finance will not be shaped by scale alone, but by its ability to adapt, lead and deliver impact.
The Star
30-07-2025
- Business
- The Star
IGB-REIT may see limited upside to unit price
CGSI Research said it remains upbeat on IGB-REIT's ability to sustain high occupancy rates and drive consistent dividend growth. PETALING JAYA: IGB Real Estate Investment Trust 's (IGB-REIT) unit price may have limited upside, according to Maybank Investment Bank (IB) Research. The research house has downgraded its call on the counter to a 'hold' from an earlier 'buy' rating. However, it has lifted its dividend discount model-based target price to RM2.83 from RM2.56 after rolling forward to financial year 2026 forecasts to reflect full contribution from the Mid Valley Southkey segment. Southkey is expected to lift earnings from the financial year 2026 (FY26) onwards. 'While we continue to like IGB-REIT's premium mall assets, full occupancy and resilient income base, we see limited upside for now, given the share price action of more than 10% over the past month. 'At current unit price levels, IGB-REIT is trading at 3.8% and 4.4% for FY25 and FY26 forecast net yields,' it said. Maybank IB Research said IGB-REIT's management is cautiously optimistic for the second half of the year as it anticipates a stronger fourth quarter (4Q) from year-end holiday spending and tourism. The Mid Valley Southkey acquisition remains on track for completion in 4Q25 –assuming a 1.5-month net property income (NPI) contribution for the forecast FY25, it said. Southkey is expected to contribute some 29% of FY26 NPI. IGB-REIT also anticipated mid single-digit rental reversions, supported by healthy leasing momentum and anchor tenant stability, Maybank IB Research said. Meanwhile, CGSI Research retained its 'hold' rating on IGB-REIT with a higher dividend discount model-based target price of RM2.64 per unit. 'While we remain upbeat on IGB-REIT's ability to sustain high occupancy rates and drive consistent dividend growth, its FY26 forecast yields of 4.9% lag behind the sector average of 5.6%. 'This may limit near-term upside potential, in our view,' it said. 'Upside risks include stronger tenants' sales and sooner-than-expected completion of the acquisition of Southkey, while downside risks include non-renewal of existing leases and unexpected hike in interest rates,' it added.
New Straits Times
24-07-2025
- Business
- New Straits Times
Court drops Anwar, govt from Mukhriz's RM5mil tax suit
KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim and the government have been excluded from Datuk Seri Mukhriz Mahathir's RM5.02 million tax arrears suit. High Court judge Datuk Amarjeet Singh today allowed Anwar, in his capacity as Finance Minister, and the government's application to strike out their names from the suit. This means the case will now proceed solely between the former Jerlun Member of Parliament and the Inland Revenue Board (IRB). However, the court dismissed an application by senior federal counsel Irmawati Daud to strike out several paragraphs in Mukhriz's affidavit that referred to Anwar and the government. Mukhriz was represented by lawyer Syed Afiq Syed Albakri. The 60-year-old politician filed the judicial review application on Dec 20 last year, naming the IRB director-general, Anwar, and the government as the first to third respondents. He is seeking to quash the IRB's action in issuing a notice requiring him to pay more than RM5 million in taxes for the assessment years 2017 to 2019. The tax authority is demanding that the former Kedah menteri besar settle RM2.56 million for 2017, RM2.44 million for 2018, and RM16,826.37 for 2019. On April 16 this year, the same court granted Mukhriz's application to stay the assessment notice pending the outcome of his judicial review to have the notice quashed. Mukhriz has alleged that Anwar, in his capacity as Finance Minister, abused his position for collateral purposes by exerting control over the IRB to serve his own interests. The Parti Pejuang Tanah Air president claimed that additional tax assessment notices for 2017 and 2018 were issued on Sept 27, 2024 — more than five years after he had filed his tax returns for those years. He is seeking a certiorari order to quash the IRB's decision to issue the additional tax assessments for 2017, 2018, and 2019 on the grounds that they are void and ultra vires. Mukhriz is also seeking a certiorari order to nullify the IRB's issuance of a certificate under Section 104(1) of the Income Tax Act (ITA), along with a declaration that the imposition of a penalty under Section 113(2) of the same Act is null and void. In addition, he is claiming general and/or exemplary damages against the first and second respondents, and vicariously against the third respondent.
