REDEFINING, ELEVATING ISLAMIC FINANCE CAN SHAPE MORE SUSTAINABLE FINANCIAL SYSTEM -- BNM GOVERNOR

KUALA LUMPUR, Oct 12 (Bernama) -- Transformational shifts, driven by strong leadership, can redefine and elevate the role of Islamic finance, and shape a more inclusive and sustainable financial system, said Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour.

He said rapid global shifts and growing expectations for Islamic finance have prompted renewed calls for the industry to chart a forward-looking path. 

The BNM governor pointed out that transformation is not a departure from proven foundations that have served the Islamic financial industry well.

“Rather, it is a bold reimagination of what might be possible — a way to deepen our purpose and reaffirm our commitment to the values that define us,” he said in his welcoming remarks at the Royal Dinner held in conjunction with the Global Islamic Finance Forum (GIFF) 2025.

Abdul Rasheed said that, in terms of advancing Islamic finance, this means expanding the application of risk-sharing structures, such as Mudarabah and Musharakah, to foster inclusive economic participation and cater to more diverse risk-reward options.

“Second, positioning Islamic finance as the primary choice for halal economy development and sustainable finance.

“Finally, unlocking the full potential of waqf and zakat as impact-driven financial tools. This involves developing clearer waqf investment frameworks, enhancing zakat governance and transparency, and better measuring outcomes through social return on investment (SROI),” he elaborated.

Abdul Rasheed said that these ideas present strategic opportunities for Islamic finance to chart a path to greater prosperity for future generations. 

“The relevance of Islamic finance tomorrow will depend on the choices that we make today, choices that reinforce our leadership, inspire innovation and attract the next generation of talent to propel Islamic finance to greater heights,” he said.

Abdul Rasheed also lauded Malaysia’s implementation of the Value-Based Intermediation (VBI), an integrated application of social finance and a framework for green and sustainable sukuk, which demonstrates Islamic finance as one that promotes inclusivity, sustainability, and integrity.

“Globally, we are encouraged by the growing alignment among regulators, international organisations and private sector stakeholders who share similar aspirations. 

“This convergence presents a timely opportunity to strengthen cross-border collaboration and scale impact, ensuring that Islamic finance plays a central role in shaping a more resilient and values-driven global financial system,” he said. 

The Sultan of Perak, Sultan Nazrin Muizzuddin Shah, also graced the GIFF 2025 Royal Dinner held at the Four Seasons Hotel here tonight, where he delivered his royal lecture themed “Bridging Tradition and Tomorrow: Advancing Business, Empowering Communities.

Also present was Finance Minister II Datuk Seri Amir Hamzah Azizan. 

-- BERNAMA