SC Named Best Regulator In Promoting Islamic Finance For Third Year Running

KUALA LUMPUR, April 22 (Bernama) -- The Securities Commission Malaysia (SC) has been honoured as the “Best Regulator in Promoting Islamic Finance” for the third consecutive year at the IFN Awards.

Its chairman Datuk Mohammad Faiz Azmi said the recognition reflects not only the regulator’s efforts, but also the contributions of ecosystem partners, in particular, industry participants’ commitment to the growth of Islamic finance. 

“Today, global Islamic finance assets stand close to US$6 trillion (US$1=RM3.94) and are set to continue on an upward trajectory. Assets are projected to reach US$9.7 trillion by 2029, representing a compound annual growth rate of 10 per cent.

“Domestically, our Islamic capital market (ICM) has grown to RM2.7 trillion, accounting for more than 60 per cent of the Malaysian capital market’s size. It validates decades of conviction that a system rooted in justice, equity and shared prosperity is not only sound, but viable,” he said. 

Meanwhile, Mohammad Faiz also said growing geopolitical tensions have ramifications beyond the West Asia conflict and are no longer distant headlines. 

“We are facing disruptions to food security, energy markets, supply chains and livelihoods.

“Here in Malaysia, rising pump prices serve as a reminder that no economy is completely insulated,” he said, adding that energy security is no less vulnerable. 

With roughly 25 per cent to 30 per cent of global oil and 20 per cent of liquefied natural gas passing through the Strait of Hormuz, any disruption drives up costs for import-dependent economies across Asia and Europe, he said. 

Hence, he said Islamic finance, with its emphasis on real economic activities, social purpose and shared risk, must respond in the affirmative.

He said the SC’s ICM agenda continues to be guided by “maqasid al-shariah”, which emphasises justice, protection of the vulnerable, promoting good and avoiding harm. 

“This is not a framework for compliance. It is a call to purpose,” he said.

Under the Capital Market Masterplan 2026-2030, he said Malaysia's ICM will transition from product-centric to ethics-driven leadership, aiming to become a global reference point for transparent and purposeful finance.

Mohammad Faiz added that the industry must also address other pressing challenges ahead, such as income inequality and post-retirement security, as well as the accelerating impact of climate change, while looking ahead to the long-term development of the capital market in Malaysia through 2040. 

“It entails broadening access to new investor segments, issuers and capital pools.

“It also includes strengthening our capital market’s positioning with foreign listings and regionally-focused exchange-traded funds, while continuing to emphasise good governance across both Islamic and conventional segments,” he said. 

-- BERNAMA