Kuala Lumpur, Malaysia: The global Islamic finance sector must harness the transformative potential of climate action, digital inclusion, and ethical innovation to serve a higher purpose for societies worldwide, emphasized Securities Commission (SC) Chairman Datuk Mohammad Faiz Azmi.
Speaking at the Islamic Finance News (IFN) Oman Forum 2025 in Muscat, he outlined how strategic frameworks such as Malaysia’s Maqasid Al-Shariah Guidance for the Islamic Capital Market and Oman’s Vision 2040 demonstrate that finance should extend beyond profit to deliver meaningful societal benefits.
Mohammad Faiz stressed that climate resilience is no longer optional but a necessity. He highlighted Malaysia’s recent achievement in securing a €2.8 million grant from the Green Climate Fund to develop its National Adaptation Plan (MyNAP). This effort gains urgency in light of the devastating 2021 floods, which resulted in losses totaling RM6.1 billion. He also praised Oman’s leadership in environmental sustainability, citing initiatives such as the Blue Carbon project aimed at planting 100 million mangroves and the Wadi Dayqah Dam, which enhances water security and flood management.
On the topic of digital inclusion, the SC chairman noted the remarkable growth of Islamic fintech in Malaysia, which reached a valuation of US$13 billion in 2024 and is expected to nearly double by 2028. He emphasized that the goal of digital innovation should be to promote inclusivity—enabling retail investors, underserved communities, and MSMEs to access financial opportunities through fractional ownership and user-friendly digital solutions.
In the realm of ethical innovation, Mohammad Faiz pointed to the industry’s historical success in providing Shariah-compliant alternatives such as sukuk, Islamic funds, and takaful. Looking ahead, he proposed pioneering new instruments such as impact-linked sukuk that incentivize positive social outcomes, tokenized Islamic social funds to broaden access and reduce costs, and Maqasid-based disclosures that align financial growth with justice, dignity, and stewardship.
He concluded by affirming that Oman, Malaysia, and the broader Islamic finance community have a unique opportunity to collaboratively build a market ecosystem that not only fosters economic progress but also uplifts societies and safeguards the planet for future generations.