Malaysia Seeks To Lead Islamic Finance Transition, Boost Investment – DPM Fadillah

KUALA LUMPUR, Oct 20 (Bernama) -- Malaysia aims to spearhead the transition towards greater use of Islamic finance to drive cross-border investment, supported by stronger ties with emerging markets, said Deputy Prime Minister Datuk Seri Fadillah Yusof.

He said ASEAN has a large Muslim population, a growing middle class, dynamic economies and a thriving halal ecosystem.

"As we deepen ties with the Gulf Cooperation Council, South Asia, Africa and other emerging corridors, Islamic finance can become the engine of cross-border investment.

"It can finance infrastructure, empower small and medium enterprises, accelerate the energy transition, strengthen food security and power our digital future; and Malaysia intends to lead this transition," he said in his opening speech at the 21st Kuala Lumpur Islamic Finance Forum 2026 (KLIFF 2026) here today.

Fadillah, who is also the Minister of Energy Transition and Water Transformation (PETRA), noted that across ASEAN, Islamic financial assets have more than doubled within a decade, from US$468 billion in 2014 to US$954 billion in 2024.

Going forward, he said Malaysia will extend its reach beyond banking and sukuk to become a powerhouse in Islamic investment, private equity, venture capital, waqf-linked vehicles and Shariah-compliant private markets. 

He noted that Malaysia will remain a trusted gateway connecting global capital with Shariah-compliant, sustainable and high-impact opportunities across ASEAN and beyond.

Fadillah said Shariah is not merely a legal formality or contractual technicality. Rather, its higher objectives, known as Maqasid al-Shariah, call for justice, equity, responsible stewardship and shared prosperity.

"This philosophy underpins value-based intermediation (VBI), the Securities Commission's Capital Market Masterplan 2026–2030, and the Guidance Note on Sukuk: An Alignment with Maqasid al-Shariah, issued on June 29, 2026," he said.

"Let us build on our progress in Green, Blue and Tokenised Sukuk, expand appropriate risk-sharing instruments, and harness technology and fintech to make Islamic finance more efficient, accessible and future-ready," he added.

Held on Oct 20-21, KLIFF 2026 has attracted more than 400 registered delegates from around the world, reaffirming its position as one of the region’s premier platforms for Islamic banking and finance.

The forum brings together policymakers, regulators, Shariah scholars, financial industry leaders, bankers, legal practitioners, Takaful operators, consultants, academics and other key stakeholders to exchange insights and explore the future direction of the global Islamic finance industry.

-- BERNAMA