Strengthening Shariah Governance and Ethical Stewardship

The SC continued to strengthen Malaysia’s ICM governance ecosystem through applied Shariah discourse and mentorship. These initiatives reinforced the SC’s role as facilitator and guardian of principled, Maqasid-aligned market conduct.

Third Nadwah of Shariah Advisers in Islamic Capital Market 2025

The SC Nadwah of Shariah Advisers in Islamic Capital Market 2025, held on 26 May 2025, in collaboration with Bursa Malaysia, focused on the critical themes of climate change, sustainable climate policies, and the integration of Shariah perspectives in addressing environmental and sustainability challenges. The event drew nearly 300 participants, featured several key highlights, the launch of two in-house publications – 40 Hadiths on Sustainability and 40 Hadiths on Ethical Sales Transactions. It also marked the establishment of the MaTF, reinforcing the SC’s commitment to drive adoption of the Maqasid Guidance across market practices.

The Closed-Door Shariah Discourse 2025 led by Dr. Sheikh Nizam Yaquby brought together key Shariah leaders and industry representatives for an in-depth discussion on Malaysia’s Shariah screening methodology and other emerging Shariah issues.

Shariah Mentorship Connect 2025

The Shariah Mentorship Connect 2025, held on 13 October 2025 in collaboration with Standard Chartered Saadiq, further deepened global-local engagement by fostering collaboration between renowned Shariah scholars and Malaysia’s emerging Shariah talent. The initiative promoted intergenerational learning and professional exchange, underscoring the SC’s commitment to developing future Shariah leaders.

The closed-door session brought together Standard Chartered Saadiq’s global Shariah Scholars to share their experiences with more than 30 participants of the SC’s Shariah Mentorship Programme (SMP), a flagship programme launched in 2023 (to date, three cohorts have completed this programme). Distinguished scholars in attendance included Sheikh Nizam Mohammed Yaquby, Dr. Mohamed Ali Elgari, Professor Dato’ Dr. Aznan Hasan, Dr. Ahcene Lahsasna and Mufti Muhammad Abdul Mubeen, among others.

Mitigating Systemic Risks And Promoting Financial Stability

Enhanced Risk Governance Framework

In 2021, the SC-wide risk governance framework was enhanced as part of an overall initiative to have an effective integrated and predictive risk surveillance to maintain regulatory agility.

The structured risk governance framework integrated the wider spectrum of risks such as technology, cyber and conduct risk at the SC’s Systemic Risk Oversight Committee (SROC) and Accounting, Market and Corporate Surveillance Committee (ACMS).

Intensified surveillance

The SC continued to intensify its surveillance of systemic risk to maintain market resilience and stability. Regular SROC engagements were held to deliberate concerns emanating from various segments across the capital market. Domestic equity and bond market, foreign fund flows and trade participation continued to be monitored closely for potential stress points.

In addition, measures and economic stimulus packages introduced by the government to weather the impact of COVID-19, market trading conduct and the financial position of listed companies were among the focus areas for discussion.

Thematic assessments

The SC also conducted thematic assessments covering investors’ fund flows, the position of firms, and policy decisions to ascertain the possible impact on the capital market. In 2021, the SC reviewed and enhanced its crisis indicators on potential emerging risks in the
capital market.

The enhanced crisis indicators provided a reference point for escalation to SROC when the identified indicators and triggers materialised and ensured prompt response to manage and prevent any issues of concern that might lead to a systemic crisis.

Joint regulatory discussions

In 2021, the SC conducted frequent joint regulatory discussions with other authorities such as Bank Negara Malaysia (BNM) and Labuan Financial Services Authority (Labuan FSA) to identify systemic risk concern areas within the financial and capital markets in Malaysia.

Monitoring of various components of the capital market

The SC continued its efforts to undertake a methodological and integrated approach to ensure any potential systemic risk was being monitored, mitigated, or managed. Figure 1 highlights the findings from the following risk assessments on the various components of the capital market.