Last updated on August 23, 2025
KUALA LUMPUR: Islamic finance must move beyond compliance and embrace broader connectivity across asset classes, geographies, and generations to sustain growth, said Bursa Malaysia Bhd chief executive officer Datuk Fad’l Mohamed.
Speaking at the Invest Shariah Conference 2025 on Thursday, Fad’l noted that the next wave of investors is younger, digitally native, and driven by values. This demographic shift, he said, is fueling demand for digital-first, value-aligned offerings, including tokenised instruments and other emerging asset classes.
“These changes demand collaboration among exchanges, regulators, asset managers, and scholars to ensure Islamic finance remains not only relevant but also competitive,” he said in his keynote address.
Themed “Innovating Islamic Finance: Unlocking Global Investment Potential”, the conference was co-hosted by CGS International Securities Malaysia and Bursa Malaysia.
Fad’l highlighted that Malaysia’s Islamic capital market is one of the most advanced globally, supported by sound regulation, a robust shariah framework, and a wide range of issuers and investors.
As of end-April 2025, Malaysia’s Islamic capital market was valued at RM2.56 trillion — 63% of the total domestic capital market size of RM4.04 trillion. By end-July, shariah-compliant equities made up RM1.3 trillion or 66.1% of Bursa Malaysia’s RM1.9 trillion market capitalisation.
He added that 860 out of 1,065 listed companies, or 81%, were shariah-compliant. The average daily trading value (ADV) of these counters stood at RM1.6 billion, accounting for 64.4% of the overall ADV of RM2.4 billion.
Globally, Islamic finance assets exceeded US$5 trillion (RM21.13 trillion) in 2024 — a 12% increase from the previous year and up 43% since 2020. The sector is projected to hit US$7.5 trillion by 2028, reflecting sustained demand across markets and asset classes.
CGS Malaysia CEO Azizah Mohd Yatim said Malaysia’s Islamic capital market benefits from an internationally recognised framework and an end-to-end ecosystem with extensive shariah-compliant products and instruments that can be scaled regionally and globally.
“Islamic capital markets offer a fundamental, values-based investment approach that continues to gain traction,” she said. “Their growing demand is testament to that trust.”
Azizah announced that CGS Malaysia is the first broker in the country to introduce Islamic Equity Linked Investment Notes and Islamic Autocallable Equity Structured Investment Notes — products designed for sophisticated investors.
She added that CGS Malaysia will soon roll out Islamic repurchase agreement (repo) products domestically, and ESG Margin Financing-i in Singapore and Indonesia.
Globally, five markets — Iran, Saudi Arabia, Malaysia, the UAE, and Kuwait — account for 80% of Islamic finance assets.
The full-day Invest Shariah Conference featured panels and fireside chats on topics such as capital flows between Asia and the Middle East, the role of private equity and venture capital in Islamic markets, and the impact of digital transformation on shariah-compliant investments.
Speakers also discussed how the Islamic capital market can drive inclusive growth, with emerging opportunities in fintech, multi-asset strategies, ESG integration, and sukuk issuance.
Source: Bernama
