Bank Negara plans Islamic finance strategy paper and framework draft in 2026
The framework review seeks broader use of syariah contracts, while the next Financial Sector Blueprint will reflect Malaysia’s socioeconomic priorities.
Bank Negara Malaysia plans to issue a strategy paper and an exposure draft of its Syariah Contract Framework in 2026 as it reviews how syariah contracts are used, governor Datuk Seri Abdul Rasheed Ghaffour said.
At the 21st Kuala Lumpur Islamic Finance Forum 2026 in Kuala Lumpur, Rasheed said the review sought to broaden the use of those contracts and make their application more effective. He said the next Financial Sector Blueprint would bring finance into closer alignment with Malaysia’s future socioeconomic priorities.
Rasheed set out three areas for attention: directing resources to higher-value sectors and renewable energy while improving resilience to economic and climate shocks; designing solutions for household and business needs that are underserved or unmet; and ensuring fairness, integrity and empathy guide commercial decisions and market conduct.
Meeting those needs includes helping halal micro, small and medium enterprises expand through both financial assistance and technical support, he said. He also urged regulators, financial institutions, syariah scholars and other industry participants to collaborate on an ecosystem that supports innovation.
The governor said Islamic finance could offer risk-sharing approaches where a wider range of capital sources, structures and risk profiles is needed. Bank Negara is using i-CITA to help the industry learn to provide such solutions for areas including climate resilience and food security.
He also pointed to the Digital Asset Innovation Hub, launched in June 2025, as a platform for industry exploration of emerging technologies and uses with real economic value.
