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3.3 SHAPING A STAKEHOLDER ECONOMY WITH SRI AND ICM
The concept of the stakeholder economy emphasises long-term value creation – one where businesses assume greater responsibilities beyond short-term profits and account for the needs of stakeholders, ranging from shareholders, employees and business partners to the environment, society, and community. This concept is very much aligned to the principles of the Islamic economic system that accentuate the rights of stakeholders across risk sharing, property rights, sanctity of contracts as well as wealth accumulation and redistribution, for a balanced and sustainable socio-economic development. Within the capital market, the SC advocates long-term value creation by (1) promoting responsible businesses with good CG (outlined in Chapter 4.1) and (2) facilitating the intermediation of capital to sustainable and responsible businesses through SRI and ICM to cater to broader stakeholders’ needs. This section outlines the development priorities for SRI and ICM in line with Malaysia’s focus over the next five years.
THE STATE OF PLAY
Efforts undertaken in the previous decade have laid the foundations for SRI offerings in Malaysia and facilitated greater advocacy of sustainability through the ICM. Both the SRI Sukuk Framework launched in 2014 and Islamic Fund and Wealth Management Blueprint launched in 2017, have positioned Malaysia as a regional centre for Shariah-compliant SRI. In addition, broad-ranging strategies identified in the SRI Roadmap, which was rolled out in 2019, are currently underway to further strengthen the SRI ecosystem.
Diagram 10
COMMONALITIES BETWEEN ESG, SHARIAH VALUES AND STAKEHOLDER ECONOMY
Shariah values
Stakeholder economy
Common Values
Social welfare Sustainable Environment friendly Human rights Labour rights Anti-corruption
Quality ESG
Source: Adapted from the Halal Industry Masterplan 2030, Halal Development Corporation Bhd, 2020.
CAPITAL MARKET MASTERPLAN 3
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