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Sunday, December 10, 2023

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Securities Commission Malaysia launches Principles-based Maqasid Al-Shariah Guidance

The Securities Commission Malaysia (SC) launched the Principles-based Maqasid Al-Shariah Guidance for the Malaysian Islamic capital market on the 2nd November 2023.

The regulator is targeting for all Malaysian Islamic capital market industry players to adopt the guidelines to take proactive actions to address issues relating to climate change, social equity, sustainability and the stakeholder economy.

The guidance, the launch of which was announced earlier in July this year, aims to enhance the Islamic capital market’s competitive advantage and fortify its contribution to the real economy. Notably, it will complement the SC’s rules and regulations rather than replacing its existing Shariah requirements.

The SC has taken a unique approach to set aspirations in accordance with the principles of Maqasid Shariah to fit within the context of the Islamic capital market.

“Instead of focusing on just Halal, we should embrace both Halal and Tayyib principles…The specific objectives for [the] Islamic capital market in the guidance is designed in accordance with six overarching aspirations that fit within the context of the Islamic capital market,” Awang Adek Hussin, the chairman of the SC, shared in his announcement speech.

The aspirations that the guidance will seek to achieve are humanity, justice and benevolence, clarity and transparency, flexibility and innovation, fiduciary and accountability, and accessibility and inclusivity.

To date, five Islamic banks have committed to adopting the guidance in their Shariah pronouncements with respect to their Islamic capital market products and services. The banks are Bank Islam, CIMB Islamic Bank, HSBC Amanah Malaysia, Maybank Islamic and Standard Chartered Saadiq.

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