Islamic finance holds 48 per cent share of Malaysia’s financial assets
The sector issued RM160 billion in sukuk for the real economy in 2025, while Islamic banks recorded business financing growth of 9.7 per cent.
Islamic finance represents 48 per cent of Malaysia’s total financial assets and is expected to exceed 50 per cent over the coming few years, Bank Negara Malaysia (BNM) governor Datuk Seri Abdul Rasheed Ghaffour told Bernama.
Abdul Rasheed said sukuk issuance supporting the real economy amounted to RM160 billion in 2025. He also reported 9.7 per cent growth in business financing by Islamic banks and 13.3 per cent growth in MSME microfinancing.
Malaysian institutions represent about 82 per cent of ASEAN’s Islamic banking assets, along with 91 per cent of takaful business in the region, he said. BNM will maintain its collaboration 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, had grown from 57 participants in 2020 to about 16,000. Entrepreneurs taking part recorded monthly sales growth of 92 per cent and generated more than 2,400 jobs, he said.
The programme now includes employment support and access to halal-certified commercial facilities through a shared central kitchen initiative called “Dapur iTEKAD KITA”. Abdul Rasheed said a second central kitchen was expected in Seberang Perai, Penang, by mid-2027, as part of efforts to extend the initiative across the country.
