The Maqasid Al-Shariah Guidance for the Islamic Capital Market Malaysia (Guidance), introduced by the Securities Commission Malaysia (SC) in November 2023, aims to align sustainable finance practices with Islamic finance, enhance the Islamic Capital Market (ICM)’s ecosystem’s authenticity, resilience and global competitiveness. This is in line with the SC’s Capital Market Masterplan 3 (CMP3), which seeks to recognise Malaysia as a global leader in ICM and enhance Malaysia’s position as a regional centre for Shariah-compliant Sustainable and Responsible Investment (SRI).

The Guidance integrates global sustainability goals with the ethical principles of Islamic finance supporting Malaysia’s vision of an inclusive and sustainable financial system. It provides a clear framework for stakeholders to navigate Islamic finance while addressing critical societal challenges such as economic development, environmental sustainability, and poverty eradication. The SC also seeks to ensure that the ICM remains competitive by fostering Shariah- compliant financial products that adhere to Islamic principles and promote socio-economic goals. By aligning Sustainable Development Goals (SDGs) with maqasid al-Shariah, the SC aims to strengthen the role of Islamic finance in promoting sustainable investments across sectors such as renewable energy, agriculture, and climate action.

This programme explores how maqasid al-Shariah principles intersect with global sustainability frameworks, with a focus on the SC’s Guidance as a vital tool in embedding ethical and sustainability-driven practices into financial markets. It will also cover the application of these principles in the financial products and services, and how existing projects can be aligned with maqasid al-Shariah principles. It will also highlight how aligning Environmental, Social, and Governance (ESG) factors, SDG goals, and Sustainable and Responsible Investment (SRI) principles with maqasid al-Shariah can address the evolving needs of the financial institutions and stakeholders, driving sustainable and inclusive growth while ensuring Islamic finance products meet current global challenges and stakeholder expectations.