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BNM Plans Further Shariah Contract Reforms to Support Islamic Finance

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BNM Plans Further Shariah Contract Reforms to Support Islamic Finance

Bank Negara Malaysia (BNM) is preparing new policy documents aimed at encouraging broader use of Shariah contracts across Islamic finance.

Governor Dato’ Sri Abdul Rasheed Ghaffour outlined the plans during his address at the 21st Kuala Lumpur Islamic Finance Forum on 20 October.

BNM will issue a Strategy Paper and Exposure Draft on its Shariah Contract Framework by the end of 2026, following a review that began in November 2024.

Abdul Rasheed also said Malaysia’s next Financial Sector Blueprint would place greater emphasis on economic and social outcomes.

He stressed the importance of directing funding towards the country’s economic needs.

It influences which sectors expand, which businesses grow and which innovations receive support.”

Through its i-CITA initiative, launched in 2025, BNM is encouraging risk-sharing financing solutions for food security and climate resilience.

The central bank is also supporting financial innovation through its Digital Asset Innovation Hub, established in June 2025.

BNM’s iTEKAD social finance initiative has supported nearly 16,000 participants through entrepreneurship, employment and protection programmes.

The governor also identified renewable energy, higher-value industries and halal MSMEs as areas where Islamic finance could play a greater role.

Featured image: Edited by Fintech News Malaysia, based on image by viktoryvisuals via Magnific



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