KUALA LUMPUR: The Securities Commission Malaysia (SC) and Islamic Development Bank (IsDB) Group plan to team up to boost cooperation in Islamic capital market (ICM) and expand Islamic fintech and social finance, focusing on waqf.
Prime Minister of Malaysia Datuk Seri Anwar Ibrahim and IsDB president and chairman Dr Muhammad Al Jasser witnessed the signing of the landmark memorandum of understanding (MoU), the first of its kind between the Malaysian capital market regulator and IsDB.
SC chairman Datuk Seri Dr Awang Adek Hussin and IsDB vice president, finance and chief financial officer Dr Zamir Iqbal signed the MoU on the sidelines of the IsDB Annual General Meeting 2024 in Riyadh, Saudi Arabia.
Both the SC and IsDB will collaborate in several key areas including facilitating innovation in Islamic fintech, promoting development of Islamic social finance, and encouraging inflow of investments, among others.
It also aims to increase capacity building, knowledge sharing and joint technical projects in key interest areas related to ICM, which can also be capitalised by both institutions for the benefit of other IsDB member countries.
Awang Adek said the synergistic collaboration marked a historic milestone for the SC and IsDB.
"We now intend to broaden and deepen Islamic fintech state of play via scalability and new markets as well as amplify opportunities through social finance including development of waqf assets, by using our respective capital markets and financial development expertise," he said in a statement today.
Anwar and Muhammad Al Jasser, in their meeting in March 2023, agreed that regulators, authorities and businesses in Malaysia work closely with IsDB to explore new areas of collaboration.
These include developing and piloting innovative Islamic finance products, promoting the halal industry, and supporting micro, small and medium enterprises (MSMEs).
Awang Adek said the SC intends to broaden and deepen the Islamic fintech state of play via scalability and new markets as well as amplify opportunities through social finance including the development of waqf assets, by using its respective capital markets and financial development expertise.
He added that the MoU is also in line with the key strategic initiatives for the Malaysian ICM under the Capital Market Master Plan 3 (2021-2025), including expanding the reach of ICM to the broader stakeholders of the economy and embracing collaboration and innovation for growth.
"This partnership will enhance the Islamic capital market not only in Malaysia but also across IsDB member countries, prioritising support for MSMEs and private markets, which are crucial for economic empowerment," Muhammad Al Jasser said.
In 2023, the Malaysian ICM grew by 4.5 per cent to RM2.4 trillion, while sukuk outstanding rose by 7.4 per cent and Shariah-compliant equities ticked up by 1.5 per cent.
Malaysia remains the global leader in ICM, particularly in sukuk outstanding as well as Islamic fund management, securing top rankings in global indices including the Islamic Fintech Index, the Global Islamic Economy Indicator, and the global Islamic Finance Development Indicator for the 10th consecutive year.-ends-s