Association of Islamic Banking and Financial Institutions Malaysia today reassures the public that Malaysia’s Islamic banking industry remains resilient, supported by strong capital and liquidity positions, amid heightened global uncertainties, including ongoing developments in the Middle East.
While Malaysia’s economic fundamentals remain sound, geopolitical tensions may have indirect spillover effects through higher energy prices, market volatility, and potential disruptions to trade and supply chains. These could impact business costs, inflation, and cash flows for certain segments of the economy. The Islamic banking industry remains vigilant and ready to respond to these evolving risks.
Grounded in Shariah principles and aligned with Bank Negara Malaysia’s (BNM) priorities, the industry continues to uphold the values of justice, compassion, and social responsibility, while advancing Values-based Intermediation (VBI) to deliver sustainable and inclusive outcomes.
In 2024, Islamic financial institutions channelled RM148.6 billion into VBI-aligned activities, including support for SMEs, green financing, and social initiatives, reinforcing resilience in key sectors of the economy. In supporting these efforts, Islamic banks are also advancing initiatives introduced by BNM, including the use of risk-sharing instruments through initiatives such as i-CITA, as well as programmes like iTEKAD Protection. These initiatives aim to strengthen financial resilience, particularly among microentrepreneurs, and promote more sustainable financial outcomes beyond short-term relief measures.
AIBIM said Islamic banks stand ready to support customers facing financial challenges through responsible and Shariah-compliant solutions, including restructuring and rescheduling where appropriate. Customers are encouraged to engage early with their respective banks.
