KUALA LUMPUR: The Securities Commission (SC) is planning to launch guidance on principles-based Maqasid al-Shariah before year-end.
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Chairman Datuk Seri Dr Awang Adek Hussin said through the guide, investors will be able to invest not only in Shariah-compliant products in Malaysia but also in those aligned with Maqasid-al-Shariah (the objective or purpose behind Islamic rulings).
He said Malaysia is a long-established global leader in Islamic finance, with its innovative and pioneering regulatory interventions and frameworks.
“We must leverage our thought leadership, push the boundaries and continue broadening the spectrum of traditional and alternative products.
“This means enabling products and outcomes that are not only Shariah-compliant but aligned to the broader principles of Maqasid al-Shariah, to meet the growing demand for Islamic products of a higher order,” he said in his keynote address at the Capital Market Research Malaysia-Securities Industry Development Corporation (ICMR-SIDC) inaugural Capital Markets Industry-University Talent Bridging Conference here, today.
Awang Adek also said Malaysia must also increase its environmental, social and corporate governance (ESG) products and sustainability financing to attract investors that prioritise ESG.
Although Malaysia is ahead of many regional peers in terms of sustainability disclosures by private limited companies, he said it is now time to work seriously towards adopting the International Sustainability Standards Board (ISSB) standards, which are expected to be effective next year.
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“Given the active development of renewable energy domestically and the introduction of a carbon market by Bursa Malaysia, we should aspire to be a regional leader in ESG products and ESG-related services,” he said.
He added that pushing for stronger growth in the private market should also be a priority, as its growth through venture capital, private equity, equity crowdfunding and peer-to-peer financing has been phenomenal.
“This must continue to be encouraged to assist small and medium enterprises’ access to suitable financing for growth and expansion,” he said.
Meanwhile, Awang Adek said the SC’s newly-launched capital market graduate programme, InvestED could help bridge the gap between demand and supply, ensuring a more future-ready workforce that could contribute to growth and stability.
He noted that collaboration between key stakeholders would be crucial to solving capital market challenges.
“The ICMR can take the lead to ‘intermediate’ and build stronger research links with universities, thus it is encouraging that the ICMR ran a Call for Papers initiative, focused on identifying capital market opportunities in Malaysia and in the region,” he added. – Bernama