Malaysia’s public sector pension fund, KWAP, is in advanced discussions to invest between US$12 million and US$15 million in Fasset, a Dubai-based Islamic digital bank, Malay Mail has learned.

The move comes as Malaysia seeks to strengthen its role in Shariah-compliant digital finance.

As part of the proposed partnership, Fasset plans to move its Asia-Pacific headquarters to Kuala Lumpur and establish a Centre of Excellence for Islamic digital assets focused on blockchain tokenisation and inclusive financial systems.

The potential investment aligns with KWAP’s strategy to diversify into private markets and support Shariah-compliant innovation platforms with regional impact.

Fasset is among a growing number of Islamic digital banks exploring the use of blockchain and AI technologies.

Its collaboration with KWAP is expected to support Malaysia’s ambitions to lead in ethical and inclusive fintech grounded in Islamic principles.

The discussions come ahead of the ASEAN-GCC Summit and follow the Malaysian government’s commitment of RM100 million under the Halal Industry Master Plan 2030 to boost Islamic finance innovation.

Featured image: Edited by Fintech News Malaysia, based on image by leoaltman via Freepik