The Securities Commission Malaysia (SC) has signed a Memorandum of Understanding (MOU) with the Islamic Development Bank (IsDB) Group to bolster the Islamic capital market and social finance.
The agreement was signed at the IsDB Annual General Meeting in Riyadh, with the presence of Malaysia’s Prime Minister, Dato’ Seri Anwar Ibrahim, and IsDB President Dr. Muhammad Al Jasser.
This first-of-its-kind partnership between the Malaysian regulator and the IsDB aims to expand Islamic fintech and social finance, including the development of waqf (Islamic endowment) assets.
The MOU facilitates innovation, promotes the growth of Islamic social finance, and aims to attract more investments into the sector.
Both parties have agreed to focus on several key areas such as capacity building, knowledge sharing, and joint technical projects which will not only benefit Malaysia but also other IsDB member countries.
The collaboration is expected to enhance the scalability of Islamic fintech operations and open new markets, thus amplifying opportunities in social finance.
Dato’ Seri Dr. Awang Adek Hussin, SC Chairman, emphasized the historic nature of this synergy, noting that it aligns with the strategic initiatives under Malaysia’s Capital Market Master Plan 3, aimed at expanding the reach and impact of the Islamic capital market.
He added,
“We now intend to broaden and deepen Islamic fintech state of play via scalability and new markets as well as amplify opportunities through social finance including development of waqf assets, by using our respective capital markets and financial development expertise.”
Dr. Muhammad Al Jasser added,
“Under this MOU, the Securities Commission Malaysia and IsDB will collaborate to enhance Islamic fintech, social finance, and attract foreign investment in private markets.
This will enhance the Islamic capital markets not only in Malaysia but also across IsDB Member Countries. This partnership prioritises support for MSMEs and private markets, which are crucial for economic empowerment.”
In 2023, Malaysia’s Islamic capital market saw significant growth, with a 4.5% increase in value and a 7.4% rise in sukuk issuances.
Featured image: (From left to right) Securities Commission Malaysia (SC) Chairman, Dato’ Seri Dr. Awang Adek Hussin, Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim, Islamic Development Bank (IsDB) Group, His Excellency Dr. Muhammad Al Jasser, and IsDB Vice President, Finance and Chief Financial Officer, Dr. Zamir Iqbal.
