SULTAN NAZRIN CALLS ON ISLAMIC FINANCE INSTITUTIONS TO BALANCE PROFIT WITH MORAL RESPOSIBILITY 

KUALA LUMPUR, Oct 12 (Bernama) -- The Sultan of Perak Sultan Nazrin Muizzuddin Shah has called on Islamic finance institutions to balance profit generation with moral integrity and social responsibility, reminding industry leaders that true progress lies not only in wealth creation but in uplifting communities.

Sultan Nazrin said profit must be pursued with purpose, guided by conscience, and rooted in values that serve the greater good.

His Royal Highness said Islamic finance, founded upon timeless principles such as fairness, transparency, accountability and risk-sharing, must remain dynamic, inclusive and forward-looking as it navigates an era of geopolitical, social and environmental transformation.

“Leadership must be anchored in courage, wisdom and moral clarity.

“We must pursue profit with responsibility and growth with justice, facilitated by a value-based financial system that uplifts communities and serves the greater good,” the Perak Ruler said in his Royal Lecture at the Global Islamic Finance Forum (GIFF) 2025 Royal Dinner held here tonight.

Also present were Finance Minister II Datuk Seri Amir Hamzah Azizan and Governor of Bank Negara Malaysia Datuk Seri Abdul Rasheed Ghaffour.

The monarch said the industry’s success must be measured not only by its financial performance but also by its contribution to people and the planet.

Citing the wisdom of Ibn Khaldun, Sultan Nazrin said economic prosperity must always be grounded in moral integrity, and that trust and ethical conduct are not optional but essential to sustainable commerce.

The Ruler also underscored the link between economic activity and social well-being, saying the growth of Islamic finance must translate into tangible progress that serves communities, not merely capital owners.

He said Islamic finance is uniquely positioned to bridge opportunity with need, highlighting that through Value-Based Intermediation (VBI), Islamic banks have already channelled nearly RM62 billion in social financing and RM17 billion in green financing, alongside RM184 million in social impact initiatives through zakat, sadaqah, iTEKAD, and waqf.

On the iTEKAD initiative, His Royal Highness described it as a shining example of how Islamic social finance can empower micro-entrepreneurs and foster socioeconomic resilience.

“Designed with care and purpose, it leverages Islamic social finance instruments to uplift micro-entrepreneurs, offering structured training, seed capital, and access to microfinancing. As of June 2025, over 10,000 participants have benefited

“The initiative has enabled many Malaysians to transition from welfare recipients to small business owners, generating income, creating jobs, and contributing back to society through zakat and other instruments of social finance.

“This is the real power of purposeful finance, when good intentions are translated into action, prosperity circulates throughout the economy,” The Ruler said.

Sultan Nazrin also urged policymakers, business leaders, philanthropists, and innovators to forge cross-border collaborations and partnerships to advance a principled, inclusive, and impactful global Islamic finance agenda.

“As we look ahead, let us recognise the pivotal role the financial industry plays in addressing the world’s most pressing challenges, from infrastructure and climate resilience, to ageing populations and the urgent need for inclusive innovation,” he said.

-- BERNAMA