Kuala lumpur: Malaysia’s capital market has reached a valuation of RM4.2 trillion, with Islamic instruments accounting for approximately 62 percent, as reported by the Securities Commission (SC).

According to BERNAMA News Agency, the SC’s chairman, Datuk Mohammad Faiz Azmi, highlighted that Malaysia contributes to one-third of the global sukuk issuances. He noted that about 80 percent of Malaysia’s listed companies are classified as shariah-compliant, establishing a foundation for Maqasid al-Shariah-aligned initiatives, disclosures, and structures.

In his address at the 16th Roundtable of the Securities Commission Malaysia and the Oxford Centre for Islamic Studies (OCIS), Mohammad Faiz explained that aligning fiduciary duties with Maqasid al-Shariah principles results in a distinct set of expectations across the market ecosystem. Board members are encouraged to devise strategies that ensure sustainable shareholder returns while considering resource use impacts on future generations.

He further stressed the role of senior management in incorporating these commitments into operational policies, risk management, and sustainability initiatives, including climate factors and remuneration strategies. Investors and fund managers have a responsibility to assess investments not only for financial returns but also for their alignment with shariah objectives.

Regulatory bodies are urged to establish rules and incentives to ensure accountability is transparent and enforceable. Mohammad Faiz noted that Malaysia is transitioning from merely expressing intentions to actively implementing them.

He mentioned that under the National Sustainability Reporting Framework, Main Market public-listed companies with a market capitalisation exceeding RM2 billion are beginning climate-related reporting this year, with other Main Market companies to follow in 2026 and ACE Market public-listed companies and large unlisted companies in 2027.