Malaysia Maintains Global Leadership In Islamic Finance - Zulkifli

KUALA LUMPUR, Oct 22 (Bernama) -- Malaysia continues to strengthen its position as a global leader in Islamic finance, remaining at the top of the world rankings for the sector's development, according to the Islamic Finance Development Indicator (IFDI) 2026 report.

Minister in the Prime Minister’s Department (Religious Affairs) Dr Zulkifli Hasan said this achievement reflects Malaysia’s success in surpassing 139 other countries evaluated in the report. 

He said the Islamic capital market grew to RM2.7 trillion by the end of 2025, equivalent to about 64 per cent of the country’s total capital market. 

“In the banking sector, Islamic banking financing accounted for approximately 48 per cent of total financing in Malaysia in 2025.

“These figures prove that Islamic finance is no longer merely an alternative; rather, it has become a key component of the nation’s financial system,” he said in his speech officiating the 19th Islamic Finance Shariah Advisors’ Muzakarah here today. 

Zulkifli said this positive momentum continued into this year, with Malaysia’s issuance of global sukuk worth US$1.5 billion (RM6.12 billion) last July successfully attracting investor orders exceeding US$9.5 billion (RM38.78 billion) -- an oversubscription of 4.7 times. 

“This success reflects the confidence of international investors in Malaysia’s financial position, as well as the appeal of the country’s Islamic financial instruments,” he said.  

Moving forward, he said the sector’s primary challenge is ensuring its growth remains driven by innovation, competitiveness, and Shariah values, while also fostering a sustainable capital market for the well-being of the people.  

“Other challenges include navigating the explosion of technology and the digital world, geopolitical and geoeconomic issues, the global energy crisis, climate change, regional conflicts, as well as humanitarian crises occurring across the globe,” he said. 

Zulkifli said that in the context of Islamic finance, success should not be measured solely by asset growth, profit, or market position. 

“It should also be based on the extent to which our institutions are able to expand access to financing, empower small enterprises, reduce economic inequality, and assist those in need,” he said. 

The government will continue to support the country's Islamic finance industry to ensure its continued growth, he added.

-- BERNAMA