THE Securities Commission Malaysia (SC) has once again been recognised as the “Best Regulator in Promoting Islamic Finance” at the IFN Awards, securing the accolade for a third consecutive year.
SC chairman Datuk Mohammad Faiz Azmi said the recognition reflects not only the regulator’s own initiatives but also the broader ecosystem supporting the development of Islamic finance, particularly the commitment of industry players.
"Today, global Islamic finance assets stand close to US$6 trillion (about RM23.79 trillion) and are set to continue on an upward trajectory.
Assets are projected to reach US$9.7 trillion (about RM38.47) by 2029, representing a compound annual growth rate of 10 per cent.
"Domestically, our Islamic capital market (ICM) has grown to RM2.7 trillion, accounting for more than 60 per cent of the Malaysian capital market’s size. It validates decades of conviction that a system rooted in justice, equity and shared prosperity is not only sound, but viable,” he said.
Mohammad Faiz also used the platform to highlight how intensifying geopolitical tensions are increasingly shaping global economic conditions well beyond West Asia, with real-world consequences for food security, energy markets and supply chains.
"We are facing disruptions to food security, energy markets, supply chains and livelihoods.
"Here in Malaysia, rising pump prices serve as a reminder that no economy is completely insulated,” he said, adding that energy security remains highly exposed to global volatility.
He noted that approximately 25 per cent to 30 per cent of global oil and around 20 per cent of liquefied natural gas pass through the Strait of Hormuz, meaning any disruption to the route could sharply increase costs for import-dependent economies across Asia and Europe.
Against this backdrop, he said Islamic finance is increasingly relevant due to its emphasis on real economic activity, social purpose and shared risk.
He added that the SC’s Islamic capital market agenda continues to be guided by maqasid al-shariah, a framework centred on justice, the protection of vulnerable groups, the promotion of good and the prevention of harm.
"This is not a framework for compliance. It is a call to purpose,” he said.
Under the Capital Market Masterplan 2026–2030, Mohammad Faiz said Malaysia’s Islamic capital market is set to evolve from a product-focused model towards ethics-driven leadership, positioning itself as a global reference point for transparent and purpose-led finance.
He also stressed that the sector must confront broader structural challenges, including income inequality, retirement security and the accelerating impact of climate change, as Malaysia maps out the long-term development of its capital market towards 2040.
"It entails broadening access to new investor segments, issuers and capital pools.
"It also includes strengthening our capital market’s positioning with foreign listings and regionally-focused exchange-traded funds, while continuing to emphasise good governance across both Islamic and conventional segments,” he said. - April 23, 2026
