Page 76 - CMP3

Along with the growing interest to invest responsibly, efforts will be made to enhance investor access to Shariah-compliant companies with good ESG practices. This will encourage companies to take into greater consideration the needs of broader stakeholders, including people or communities and the environment. This is expected to further elevate the socially responsible and ethical values of Shariah- compliant companies. In this regard, guidance will be provided to incorporate Shariah requirements and ESG standards for investors seeking such investments as well as companies aspiring to adopt ESG practices. This guidance will leverage existing Shariah screening methodologies and internationally-recognised positive screening methodologies available in the market.
For greater impact to the socio-economic development in Malaysia, the SC will explore greater use of the ICM framework as a reference point and its products and services as funding sources for further development of the Islamic social finance sector. The key objective is to alleviate hardship among the underprivileged population within the Islamic wealth management and distribution system. Today, sources of funding for Islamic social finance are enabled by capital market instruments such as SRI sukuk and waqf-featured funds.
Moving forward, there are opportunities for impact assessments to be integrated with Islamic social finance instruments. This will enable measurable impact investments in the areas of socio-economic development – ensuring that investors will be able to measure whether the capital invested has achieved its desired impact objectives. In this regard, efforts will be focused on building an enabling ICM ecosystem for impact investing. This entails the sharing of knowledge, research capabilities, structured platforms for co-ordination and collaboration with impact stakeholders as well as a facilitative regulatory and development environment for innovation.
Diagram 12
ICM OFFERINGS CAN BE BROADENED TO BE MORE RELEVANT TO THE DIFFERENT STAKEHOLDERS OF THE ECONOMY
Relevant to broader halal MSMEs
Facilitate funding access for MSMEs in the halal economy
Relevant
to environment
Empower investors and businesses that are responsible and sustainable
Relevant to society
Enable socio-economic development of the nation, leveraging Islamic social finance
Source: SC.
74 SECURITIES COMMISSION MALAYSIA