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One key area of focus is on shaping the ICM landscape towards meeting maqasid al-Shariah, a concept which places value on advocating righteous behaviour, moral conduct and acts of goodness. In this regard, strategic thought leadership promoting greater ICM contribution towards maqasid al-Shariah will be developed, focusing on areas such as social finance, impact investing, SRI as well as Islamic fund and wealth management. Efforts to enhance Malaysia’s position as a global centre for ICM will also be intensified, with the aim of providing a global reference platform for ICM.
Capacity building is another key area for the sustainable growth of ICM in Malaysia. Efforts to meet current and future capacity requirements will be strengthened through various upskilling and reskilling programmes to enable the development of professional expertise. There will be greater focus on strengthening capacity and enhancing the abilities of ICM practitioners in the area of Shariah governance via the orderly enhancement of the Shariah governance framework. This will include further strengthening entry requirements and dedicated learning programmes for Shariah advisors.
In the area of Islamic wealth management, growth opportunities exist globally, and Malaysia is well- positioned to capitalise on it given its stature as a leading ICM jurisdiction. Efforts will be intensified to develop capabilities and talents across the value chain of Islamic wealth management through collaborations with regulators, industry players, training and academic institutions, professional bodies as well as other relevant stakeholders. This will help to ensure Islamic wealth management capacity-building programmes continue to be relevant. Measures to establish infrastructure for various aspects of wealth creation, accumulation, preservation and distribution will also be explored. This will include efforts to expand waqf-featured fund modality as an effective platform for wealth management products.
C. PROMOTING INNOVATION AND EFFICIENT DELIVERY OF ICM PRODUCTS AND SERVICES THROUGH FINANCIAL TECHNOLOGY
Technology and business innovation are key enablers for greater investment inclusion, which can benefit the broader society. While digital adoption in Malaysia’s ICM has expanded across Islamic ECF, P2P financing and DIMs, Shariah-compliant fundraising and investment activities are still at the nascent stage on digital capital market platforms. The SC recognises the importance of digitisation in the capital market and its increasing adoption by market participants. To further the ICM agenda in the digital space, the SAC of the SC had resolved in July 2020 that it is permissible to invest and trade in digital currencies and digital assets on registered DAX that fulfil the requirements as specified in the SAC resolution. This SAC resolution marked a significant milestone for the ICM community to facilitate greater product innovation and the development of digital assets, which in turn, will attract broader participation and provide alternative channels for Shariah-compliant fundraising.
To enable further growth and expand ICM offerings, fintech will be leveraged as an enabler for innovative solutions, focusing on the halal economy, SRI and Islamic social finance. These digital solutions will facilitate connectivity by allowing issuers, investors and intermediaries to access existing and new markets in a more efficient and cost-effective manner, thus spurring the growth of the industry. Key initiatives include advancing innovation by capitalising on existing frameworks and through closer collaboration with relevant and key stakeholders.
Programmes to encourage innovation supported by appropriate regulatory guidance will also be considered to facilitate new digital business models, products and services. This will further advance Islamic fintech while creating an ecosystem that nurtures talent, innovation, ideas and solutions that can enable new offerings and improve accessibility.
76 SECURITIES COMMISSION MALAYSIA