KUALA LUMPUR: Malaysia's Islamic finance industry is evolving beyond traditional banking to play a wider role in people's lives and the economy, from helping microentrepreneurs build sustainable businesses to enabling small and medium enterprises (SMEs) to enter global markets.
Over more than four decades, the industry has grown from a niche segment into a comprehensive financial ecosystem supporting businesses, households and the country's economic development.
Bank Negara Malaysia governor Datuk Seri Abdul Rasheed Ghaffour said Islamic finance accounted for 48 per cent of Malaysia's total financial assets, with its share expected to surpass 50 per cent within the next few years.
"The industry contributed RM160 billion in issuance of sukuk to fund the real economic sector in 2025. Islamic banks' business financing grew by 9.7 per cent, supporting businesses across various economic sectors, while MSME microfinancing growth stood at 13.3 per cent," he told Bernama.
