KUALA LUMPUR: Monetary expertise (fintech) can be leveraged as an enabler for modern options specializing in the halal financial system, socially accountable investing (SRI) and Islamic social finance to additional develop the Malaysian Islamic capital market (ICM), says the Securities Fee Malaysia (SC).
SC Islamic capital market improvement government director Sharifatul Hanizah Stated Ali mentioned the regulator additionally expects better adoption of digitization and expertise to broaden and speed up the capability for stakeholders to boost the Islamic finance ecosystem.
“The digital options would facilitate connectivity by permitting issuers, buyers, and intermediaries to entry current and new markets in a extra environment friendly and cost-effective method, thereby accelerating the business’s development,” she informed Bernama through an e mail interview lately.
Sharifatul Hanizah mentioned publish COVID-19, the small and medium enterprise (SME) business had acknowledged the significance of going digital and using fintech to make sure steady operationalisation of their enterprise actions, in addition to to achieve entry for capital to take care of and develop their enterprise .
“Elevating capital by Shariah-compliant means is particularly important for SMEs within the halal business, which includes a big proportion of SMEs in Malaysia,” she mentioned.
As for the underside 40 per cent of the family earnings group (B40), the youth and underprivileged, Sharifatul Hanizah mentioned the adoption of fintech and Islamic fintech had supplied them with new methods to generate earnings after being displaced from their job, or to regain Some monetary management with simpler and simpler cash administration with elevated monetary literacy.
Noting the significance of fintech in serving the B40 and SMEs, she mentioned the SC is specializing in increasing ICM choices to allow better connectivity, accessibility and inclusivity for all market gamers, significantly the underprivileged segments.
“To realize this, the SC will improve its efforts on the event of the Islamic social finance sector which has been instrumental in addressing poverty alleviation and socio-economic improvement,” she mentioned.
She mentioned immediately, extra sources of funding for Islamic social finance are enabled by capital market devices similar to SRI sukuk and waqf-featured funds.
On the third Capital Market Masterplan (CMP3) for 2021-2025 launched in September 2021, Sharifatul Hanizah mentioned innovation and fintech are among the many key areas outlined within the five-year plan.
“To allow additional development and develop ICM choices, fintech can be leveraged as an enabler for modern options.
“Consciousness and lively participation from each the demand and provide aspect of the market are additionally essential to make sure the expansion and growth of the ICM by fintech and digital channels,” she mentioned.
As such, she mentioned the SC would intensify its ongoing efforts to lift consciousness of other Islamic fundraising devices similar to peer-to-peer (P2P) and fairness crowdfunding (ECF).
Wanting into the strategic five-year plan of the CMP3, Sharifatul Hanizah mentioned the SC would proceed to leverage the energy and advances of the Malaysian ICM to appreciate the assorted targets of sustainable developments.
“Amongst others, the SC goals to remodel Malaysia right into a regional SRI hub by increasing the attain of the ICM to the broader stakeholders of the financial system and construct an enabling ICM ecosystem for Islamic social finance, in addition to influence investing,” she added. – Bernama