KUALA LUMPUR: The Malaysia International Islamic Finance Centre Leadership Council chairman Tan Sri Azman Mokhtar has underscored the pressing need to foster a more sustainable financial system, both domestically and internationally, particularly through Islamic finance.
Azman highlighted the evolving trends in finance and business towards sustainability and stakeholder-centric approaches, propelled by movements focusing on environmental, social, and governance (ESG) considerations.
This shift contrasts with the previous emphasis solely on the interests of shareholders, as he said in a statement.
"It is in this context that this historic moment is especially opportune for Islamic finance and economics, with its ideal of social justice and an ethical core as its anchoring principles," he said.
Azman was speaking at the second edition of Standard Chartered Saadiq Malaysia's Regional Islamic Financial Markets Forum, held recently. The forum was attended by more than a hundred participants from the financial services industry, both local and regional.
According to projections, global Islamic finance assets are anticipated to reach US$6.7 trillion by 2027, marking a significant rise from the estimated US$4.5 trillion recorded in 2022. Malaysia, with US$666 billion, holds the third-largest share at 14.8 per cent, following Iran (US$1.5 trillion) and Saudi Arabia (US$1 trillion).
Furthermore, Malaysia leads in total sukuk value outstanding, reaching US$300 billion out of the global US$788 billion in 2022. It also ranks first in sukuk issuance, with US$80 billion, representing 41 per cent of the total US$193.9 billion issued worldwide.
Mak Joon Nien, chief executive officer of Standard Chartered Malaysia, emphasised the immense growth potential in Islamic finance, with Malaysia serving as a pivotal hub and international leader in the sector.
He highlighted Standard Chartered Saadiq's commitment to maintaining leadership in Islamic banking, leveraging over 30 years of experience in Malaysia.
Nien expressed the bank's dedication to serving clients through a comprehensive range of products, supported by Shariah boards comprising leading scholars globally.
He also noted the bank's extensive Islamic banking expertise across 25 markets spanning Asia, Africa, and the Middle East, forming an unparalleled network aligned with their vision of being "Here For Good."