KUALA LUMPUR: Islamic finance must leverage three key drivers to serve a higher purpose for Malaysia, Oman and the global community.
Securities Commission chairman Datuk Mohammad Faiz Azmi identified climate action, digital inclusion and Islamic innovation as essential strategic priorities.
He emphasised that finance must transcend mere profit-making through frameworks like Malaysia’s Maqasid Al-Shariah Guidance and Oman’s Vision 2040.
Climate resilience has become a national priority for Malaysia following devastating 2021 floods that caused RM6.1 billion in losses.
Malaysia secured a 2.8 million euro grant from the Green Climate Fund this year to develop its National Adaptation Plan.
Mohammad Faiz praised Oman’s environmental initiatives including its Blue Carbon project with 100 million mangroves and the Wadi Dayqah Dam for water security.
Malaysia’s Islamic fintech sector is thriving with an industry valuation of USD 13 billion in 2024 and projected near-doubling by 2028.
Digital inclusion objectives focus on providing fractional access for retail investors and underserved communities through innovative solutions.
Islamic innovation continues through alternatives like sukuk instead of bonds and takaful instead of conventional insurance.
Future innovations may include impact-linked sukuk rewarding social outcomes and tokenised Islamic social funds with lower transaction costs.
Maqasid-based disclosures could further tie financial growth to principles of justice, dignity and environmental stewardship.
Oman and Malaysia have the opportunity to collaboratively build an Islamic market ecosystem that uplifts societies while protecting the planet.
Mohammad Faiz delivered these remarks during his keynote address at the Islamic Finance News Oman Forum 2025 in Muscat. – Bernama
