The Securities Commission Malaysia (SC) has recently signed a Memorandum of Understanding (MOU) with the Islamic Development Bank (IsDB) Group. This landmark agreement, witnessed by the Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim, and IsDB President and Chairman, His Excellency Dr. Muhammad Al Jasser, marks a pivotal moment in strengthening ties between Malaysia’s capital market regulator and the renowned multilateral development bank.
Signed on the sidelines of the IsDB Annual General Meeting 2024 in Riyadh, the MOU aims to broaden cooperation in various areas, including Islamic fintech, social finance, and investment inflows. Both entities will collaborate to facilitate innovation, promote the development of Islamic social finance, and enhance capacity building and knowledge sharing in key interest areas related to ICM.
SC Chairman, Datuk Seri Dr. Awang Adek Hussin, Chairman of the SC, emphasised the historic significance of this collaboration, envisioning the expansion of Islamic fintech and social finance opportunities. He stressed the potential for leveraging capital markets and financial expertise to develop and scale up micro, small, and medium enterprises (MSMEs), aligning with the aspirations of both parties.
Dr. Muhammad Al Jasser echoed the sentiment, highlighting the partnership’s focus on enhancing Islamic fintech, social finance, and attracting foreign investment in private markets. Emphasizing support for MSMEs and private markets as crucial for economic empowerment, Dr. Al Jasser underlined the MOU’s potential to elevate Islamic capital markets not only in Malaysia but across IsDB member countries.
The MOU aligns with Malaysia’s strategic initiatives under the Capital Market Master Plan 3 (2021 – 2025), aiming to expand the reach of ICM and embrace collaboration and innovation for growth. To reinforce Malaysia’s position as a global leader in ICM, the SC, together with Capital Markets Malaysia, has engaged with stakeholders in Abu Dhabi, Dubai, and Riyadh, advocating for the advancement of social impact investing, sukuk issuances, and Islamic asset management.
In 2023, Malaysia’s ICM experienced robust growth, with sukuk outstanding rising by 7.4% and Shariah-compliant equities by 1.5%, reaching RM2.4 trillion in total. Malaysia continues to lead globally in sukuk outstanding and Islamic fund management, maintaining its top rankings in key indices for the 10th consecutive year.
