Riyadh, Kingdom of Saudi Arabia, 29 April 2024 – The Islamic Development Bank (IsDB) Group and The Securities Commission Malaysia (SC) signed a Memorandum of Understanding (MOU), paving the way for greater cooperation in Islamic capital market (ICM) and broadening the reach of Islamic fintech and social finance, particularly waqf. 

Honorable Prime Minister of Malaysia, Dato' Seri Anwar Ibrahim and IsDB President and Chairman, H.E. Dr. Muhammad Al Jasser, witnessed the signing of the landmark MOU, the first-of-its-kind between the Malaysian capital market regulator and the premier multilateral development bank of the Global South.

The IsDB Vice President, Finance and Chief Financial Officer, Dr. Zamir Iqbal and SC Chairman, Dato’ Seri Dr. Awang Adek Hussin, signed the MOU on the sidelines of the 2024 IsDB Group Annual Meetings in Riyadh.

Dato' Seri Anwar Ibrahim and HE Dr. Muhammad Al Jasser, in their meeting in March 2023, agreed that regulators, authorities, and businesses in Malaysia should work closely with IsDB to explore new areas of collaboration. These include developing and piloting innovative Islamic finance products, promoting the halal industry, and supporting micro, small and medium enterprises (MSMEs).

Under the MOU signed, both the SC and IsDB will collaborate in several key areas. These include facilitating innovation in Islamic fintech, promoting the development of Islamic social finance, and encouraging inflow of investments, among others. The IsDB Kuala Lumpur Center of Excellence (KLCoE) will be the focal point in the implementation of this MoU.

Dato’ Seri Dr. Awang Adek said the synergistic collaboration marked a historic milestone for the SC and IsDB. “We now intend to broaden and deepen Islamic fintech state of play via scalability and new markets, as well as amplify opportunities through social finance including the development of waqf assets, by using our respective capital markets and financial development expertise,” he said. “Through greater collaboration, both parties can also develop and scale up the MSMEs in support of our aspirations,” he added.

Dr. Muhammad Al Jasser said, “Under this MOU, the Securities Commission Malaysia and IsDB will collaborate to enhance Islamic fintech, social finance, and attract foreign investment in private markets. This will enhance the Islamic capital markets not only in Malaysia but also across IsDB Member Countries. This partnership prioritizes support for MSMEs and private markets, which are crucial for economic empowerment.”