KUALA LUMPUR: The Islamic Capital Market (ICM) has become a key component of Malaysia's economy, accounting for 64 per cent of the country's total capital market, according to Securities Commission Malaysia (SC) Chairman Datuk Seri Dr. Awang Adek Hussin.
He noted that by the end of 2023, the ICM had grown to reach RM2.4 trillion.
"Total sukuk outstanding exceeded RM1.2 trillion, Islamic fund assets under management surpassed RM226 billion and Shariah-compliant equities accounted for RM1.2 trillion.
"Malaysia remains the global leader for Sukuk in terms of issuance, and at the end of last year, it accounted for 35 per cent of global outstanding sukuk," he said in his opening address at the Global Forum on Islamic Economics & Finance (GFIEF) here yesterday.
In the area of asset management, Awang Adek said there are now 58 Islamic asset management companies managing Islamic portfolio of RM236.6 billion.
This consist of 19 locally incorporated foreign companies with a total asset under management (AUM) of RM63.8 billion (27 per cent) and 39 local companies with a total AUM of RM172.8 billion (73 per cent).
"It is also important to recognise the role of digital technology in sustaining our economy and society.
"Malaysia has witnessed a proliferation of innovative fintech solutions that enhance financial inclusion, accessibility, and efficiency.
"Digital banking, digital exchange, blockchain and artificial intelligence are revolutionising the financial landscape, offering new opportunities for Islamic finance to expand its reach and impact," he added.
Meanwhile, Awang Adek said that the SC will introduce syariah screening for publicly listed companies later this year.
He said this is expected to refresh the regulatory ecosystem for sustainability, facilitate a just transition, and enhance further the alignment between Shariah and sustainability.
"The SC is also putting in place concrete steps to support the national sustainability agenda and strengthen Malaysia as a regional Sustainable and Responsible Investment (SRI) hub," he said.
Awang Adek also noted that the SC will establish an advisory committee to speed up its implementation by the end of the year, with proper governance and assurance framework in place.
He said this will promote raising of funds, and ensure funds raised in the Exchange, will be used properly for their intended purposes.
Adding further, Awang Adek said the SC is also in the process of establishing a Social Exchange to address societal needs and promote inclusive economic development.
He noted that this initiative provides a platform for social enterprises and non-profit organisations to raise funds at zero coupon and zero capital repayments for projects benefiting the under-privileged segment of the society.
He said this will ultimately foster a more inclusive and equitable financial ecosystem.