Islamic finance holds 48 per cent share of Malaysia’s financial assets
The sector is expected to exceed 50 per cent within the next few years, while social financing programmes are expanding support for microentrepreneurs.
Islamic finance represents 48 per cent of financial assets in Malaysia, and its share is expected to exceed 50 per cent within the next few years, Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour told Bernama.
Abdul Rasheed said sukuk issuance provided RM160 billion for the real economy in 2025. He also reported growth of 9.7 per cent in business financing by Islamic banks and 13.3 per cent in microfinancing for micro, small and medium enterprises.
Malaysian institutions hold about 82 per cent of ASEAN’s Islamic banking assets and account for 91 per cent of its takaful business, he said. Bank Negara will continue collaborating with financial institutions and other partners on digitalisation, sustainable finance and innovation.
On social financing, Abdul Rasheed said iTEKAD, introduced during the Covid-19 pandemic for low-income microentrepreneurs and underserved communities, had grown from 57 participants in 2020 to about 16,000. Participating entrepreneurs recorded a 92 per cent rise in monthly sales and generated more than 2,400 jobs, he said.
The programme now includes Dapur iTEKAD KITA, which gives entrepreneurs access to a shared kitchen with halal-certified, commercial-grade facilities. A second central kitchen is expected in Seberang Perai, Penang, by mid-2027.
Abdul Rasheed also highlighted the Greening Halal Business programme, which helps halal businesses adopt sustainable practices and cut carbon emissions. He said Islamic financial institutions could support that transition through financing, technical assistance and capacity building, helping businesses meet export-market environmental requirements.
