Malaysia seeks wider Islamic investment role beyond banking and sukuk
Deputy Prime Minister Datuk Seri Fadillah Yusof said stronger emerging-market ties could help Islamic finance support investment across borders.
Malaysia intends to lead efforts to expand Islamic finance as a means of funding cross-border investment, Deputy Prime Minister Datuk Seri Fadillah Yusof said in Kuala Lumpur on Oct 20. The ambition includes moving beyond banking and sukuk into a wider range of investment activities.
Addressing the opening of the 21st Kuala Lumpur Islamic Finance Forum 2026 (KLIFF 2026), he said Malaysia would pursue Islamic investment, venture capital, private equity, waqf-linked vehicles and private markets that comply with shariah.
Fadillah linked the cross-border investment ambition to closer relationships with emerging markets, including Africa, South Asia and the Gulf Cooperation Council. He identified infrastructure, energy transition, smaller enterprises, food security and digital development as areas Islamic finance could support.
He put Asean's Islamic financial assets at US$954 billion in 2024, compared with US$468 billion in 2014. The region's Muslim population, growing middle class and halal ecosystem were among the factors he highlighted.
Fadillah also urged further work on sukuk covering green, blue and tokenised instruments, as well as suitable risk-sharing products. Technology and fintech should help improve efficiency and access, he said. KLIFF 2026 runs on Oct 20-21 and drew registrations from more than 400 delegates worldwide.
