The Securities Commission Malaysia and the Islamic Development Bank Group have signed a memorandum of understanding (MoU) to enhance cooperation in Islamic capital market (ICM) and fintech, focusing on waqf development. The collaboration aims to promote innovation, social finance, and investment, benefiting both Malaysia and other IsDB member countries.
1 May 2024 – The Securities Commission Malaysia (SC) and the Islamic Development Bank (IsDB) Group have announced plans to strengthen cooperation in the Islamic capital market (ICM) and expand Islamic fintech and social finance initiatives, with a focus on waqf.
The signing of a landmark memorandum of understanding (MoU), witnessed by Prime Minister of Malaysia Datuk Seri Anwar Ibrahim and IsDB president and chairman Dr. Muhammad Al Jasser, marks the first collaboration 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 inked the MoU on the sidelines of the IsDB Annual General Meeting 2024 in Riyadh, Saudi Arabia.
Under the MoU, both the SC and IsDB will work together in various areas including facilitating innovation in Islamic fintech, promoting the development of Islamic social finance, and attracting investments. Capacity building, knowledge sharing, and joint technical projects related to ICM are also on the agenda, aimed at benefiting other IsDB member countries.
Awang Adek Hussin described the collaboration as a historic milestone, emphasizing plans to advance Islamic fintech and social finance, including the development of waqf assets. He stated, “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.”
The MoU aligns with strategic initiatives outlined in Malaysia’s Capital Market Master Plan 3 (2021-2025), aiming to expand the reach of ICM and embrace 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,” remarked Muhammad Al Jasser.
In 2023, the Malaysian ICM experienced growth with a 4.5% increase to RM2.4 trillion, while sukuk outstanding rose by 7.4% and Shariah-compliant equities by 1.5%. Malaysia maintains its position as a global leader in ICM, securing top rankings in various global indices for the 10th consecutive year. – ref: NST
