The Securities Commission Malaysia (SC) has raised concerns over succession risks in the Islamic capital market (ICM), revealing that almost 70% of Malaysia’s Shariah advisers are aged 42 and above while women account for only 13% of the profession.
SC chairman Mohammad Faiz Azmi said the industry faces an urgent need to develop a new generation of Shariah professionals as the current generation gradually retires.
“The succession and talent risk is therefore real and urgent. The generation that built this industry will retire. The question is, will the next generation be ready to take their place?” he said during the Shariah Mentorship Programme graduation ceremony on Tuesday.
Mohammad Faiz said Malaysia’s ICM expanded from RM2.2 trillion in 2020 to RM2.7 trillion by end-2025, representing 64% of the country’s overall capital market. The sector includes RM1.3 trillion in Shariah-compliant listed stocks and RM1.4 trillion in sukuk outstanding.
He added that 80% of listed securities in Malaysia, or 867 counters, are now Shariah-compliant, while the Islamic fund management industry has grown to 433 funds. The SC also approved 54 sukuk programme submissions last year.
“The ICM sits at the very heart of our capital market ecosystem. It calls for professionals of the highest calibre and attributes such as sound Shariah judgment, careful deliberation and professional accountability,” he said.
The Shariah Mentorship Programme, jointly run by the SC and ISRA International Consulting, was established to strengthen the talent pipeline for the Islamic finance industry through industry placements, mentorship and classroom learning.
To date, the programme has produced 45 alumni, with more than 70% currently working in the industry. Three alumni have already become registered Shariah advisers.
Mohammad Faiz also announced plans under the Capital Market Masterplan 2026-2030 to introduce a new “Super Scholar” programme aimed at developing Shariah scholars capable of driving innovation and strengthening Malaysia’s intellectual leadership in Islamic finance.
“Products like green sukuk, sustainable and responsible investments, digital assets, tokenisation, waqf and zakat linked instruments will require credible Shariah guidance,” he said.
