Malaysia's Islamic Finance Built On Integrity And Expertise, Not By Chance - Mohd Na’im

KUALA LUMPUR, Nov 20 (Bernama) -- Malaysia’s success and resilience in Islamic finance did not emerge by chance but were built on knowledge, integrity, and the expertise of Syariah advisers who anchor the industry’s governance.

Minister in the Prime Minister’s Department (Religious Affairs) Datuk Dr Mohd Na’im Mokhtar said the leadership, wisdom, and integrity of these experts ensure that every Islamic financial product, instrument and innovation remains firmly grounded in Syariah principles.

“They are not merely reviewers of legal rulings, but moral and strategic guides who preserve authenticity while driving innovation,” he said when opening the 18th Muzakarah for Syariah Advisors of Islamic Finance here today.

Organised by the Centre for Research and Training (CERT), the conference gathers senior policymakers, Syariah scholars and industry leaders to discuss regulatory innovation, digitalisation, sustainability and Syariah compliance in Islamic finance.

Mohd Na’im said Malaysia has become a global leader in modern Islamic finance due to visionary leadership, strong governance and robust institutions - from the introduction of the Islamic Banking Act 1983 to the rapid growth of industry players and markets.

Key achievements include Islamic banking accounting for 46.6 per cent of total national financing, an Islamic capital market valued at RM2.63 trillion or 62 per cent of the national capital market, and Malaysia’s continued dominance of the global sukuk market with nearly 45 per cent of worldwide issuances.

“Malaysia is not merely following global trends; we are shaping them. Islamic finance has become a symbol of innovation, integrity and inclusion,” he said.

Mohd Na’im said that these gains are reinforced through strategic measures under Budget MADANI 2026, including the Sustainable and Responsible Investment (SRI) Sukuk and Bond Grant Scheme, expanded stamp duty incentives for affordable takaful protection, strengthened waqf initiatives and the development of a Global Sukuk Tokenisation framework.

He said Malaysia is well-positioned to continue leading the industry, particularly in green instruments such as green sukuk, climate sukuk and ESG-based financing, in line with global demand for sustainability and environmental stewardship.

“Global shifts are not threats but golden opportunities to renew Islamic finance so it becomes more dynamic and inclusive. With knowledge, values and vision, Malaysia will continue to lead the world in Islamic finance,” he said.

-- BERNAMA