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MALAYSIA’S Islamic capital market has reached a valuation of RM2.56 trillion as of April this year, representing 63 per cent of the country’s total capital market size of RM4.04 trillion, according to Bursa Malaysia Chief Executive Officer Datuk Fad’l Mohamed.
Speaking at the Invest Shariah 2025 Conference, Fad’l described the figure as “not merely a statistic, but compelling evidence of the continued importance of Shariah-compliant investment in driving market participation and long-term value creation”.
“Malaysia is on solid footing,” he said. “Our Islamic capital market remains among the most developed globally, supported by robust regulation, a strong Shariah framework, and a diverse investor base.”
As of July, the market capitalisation of Shariah-compliant equities stood at RM1.3 trillion — accounting for 66.1 per cent of Bursa Malaysia’s total market capitalisation of RM1.9 trillion. Meanwhile, the average daily trading value (ADV) of Shariah-compliant counters reached RM1.6 billion, or 64.4 per cent of the overall ADV on the exchange, which stands at RM2.4 billion.
Of the 1,065 companies listed on Bursa Malaysia, 860 — or 81 per cent — are Shariah-compliant.
In addition to equities, Fad’l noted that Malaysia’s sukuk market has matured significantly, now encompassing issuances linked to Environmental, Social and Governance (ESG) outcomes, sovereign mandates, and structured infrastructure financing.
However, he warned that past success does not guarantee future relevance. “Leadership must be renewed,” he said, calling for “stronger cross-border engagement, broader product offerings, and the development of digital infrastructure that enables greater inclusion and access”.
Fad’l’s remarks underscored the need for Malaysia’s Islamic capital market to remain dynamic and forward-looking, particularly as global investors increasingly seek alignment with ESG principles and digital innovation. - August 7, 2025