Securities Commission Malaysia and IsDB Group collaborate to enhance Islamic capital market and social finance

The Securities Commission Malaysia (SC) and the Islamic Development Bank (IsDB) Group have signed a Memorandum of Understanding (MOU) to enhance cooperation in the Islamic capital market (ICM) and expand the reach of Islamic fintech and social finance, particularly waqf.

The signing of the MOU took place in Riyadh, Kingdom of Saudi Arabia, with the Honourable Prime Minister of Malaysia, Dato’ Seri Anwar Ibrahim, and IsDB President and Chairman, His Excellency Dr. Muhammad Al Jasser, in attendance. This marks the first-of-its-kind collaboration between the Malaysian capital market regulator and the premier multilateral development bank of the Global South.

Under the MOU, the SC and IsDB will work together to facilitate innovation in Islamic fintech, promote the development of Islamic social finance, and attract foreign investment into private markets. The partnership aims to increase capacity building, knowledge sharing, and joint technical projects related to ICM, benefiting other IsDB member countries as well.

Dato’ Seri Dr. Awang Adek Hussin, Chairman of the SC, highlighted the importance of this collaboration in advancing Islamic fintech and social finance. Dr. Muhammad Al Jasser emphasized the significance of supporting micro and small enterprises (MSMEs) and private markets for economic empowerment.

The MOU aligns with Malaysia’s Capital Market Master Plan 3 (2021 – 2025) strategic initiatives to expand the reach of ICM and promote collaboration and innovation for growth. The Malaysian ICM has shown steady growth, with sukuk outstanding and Shariah-compliant equities on the rise.

The introduction of a social exchange in Malaysia later this year will further strengthen the country’s position as a global leader in ICM and Islamic sustainable development. Malaysia’s achievements in ICM have been recognized globally, securing top rankings in various indices for the 10th consecutive year.