It is a great pleasure to join you today at the Global Islamic Financial Institutions Forum 2026. I would like to thank Standard Chartered Saadiq for convening this important gathering in Malaysia and for providing this platform to exchange some perspectives on the future of Islamic finance at a time when the global landscape is being reshaped.  

I had the opportunity to preview the report that will be launched shortly, The Islamic Finance Connector Era. The report resonates as it reflects a reality that we are witnessing across the global economy, that opportunities are increasingly created not only within markets, but through stronger connections between markets, capital and commerce across regions.

New growth corridors are emerging across ASEAN, the GCC, South Asia and Africa. Trade routes are evolving. Supply chains are being rewired. Capital is seeking new destinations. The recent geopolitical developments and shifts in global trade patterns are accelerating this trend. The GCC-Asia corridor is becoming increasingly important as businesses seek more resilient pathways for trade, payments and financing. 30% of the anticipated growth in GCC-ASEAN trade activity would be reinforced by economic cooperation in trade and investment, supply chain diversification, Islamic banking, and the outcomes of Free Trade Agreements (FTAs). At the same time, the halal economy, offers a USD2.2 trillion market opportunity across Southeast Asia, the Middle East, Africa and China. Together, these developments point to an increasingly interconnected world.

The New Silk Road Reimagined

These insights bring to mind a vision articulated nearly two decades ago by our former Governor, Tan Sri Dr. Zeti Akhtar Aziz, who spoke of a 'New Silk Road', as the guiding vision for the Malaysia International Islamic Finance Centre (MIFC) initiative. Historically, the Silk Road connected East and West civilisations through movement of goods, people and ideas. Today, a new Silk Road is taking shape through financial markets, digital networks and investment corridors.   

Across many parts of the world, capital travels where opportunities reside. By linking capital with productive economic activity, Islamic finance offers a natural framework for facilitating investment, trade and shared prosperity across these emerging corridors. The need for such intermediation has never been greater. While global cross-border portfolio assets have exceeded USD89 trillion^[1], only a small share of global sukuk capital currently reaches South Asia and Africa, despite the significant infrastructure and development needs in these regions^[2].

Islamic Finance is ready. There are now more than 2,200 Islamic financial institutions globally with assets reaching USD6 trillion^[3]. Global Islamic finance is projected to reach USD9.6 trillion by 2030^[4]. Across jurisdictions, Islamic finance has already demonstrated the ability to efficiently mobilise capital, facilitate investment and support economic developments. Sukuk and other Islamic financing instruments have funded infrastructure, transportation, agriculture, energy and business expansion projects across both developed and emerging economies.

Malaysia as a Trusted Connector of Capital and Growth

Malaysia is uniquely positioned to serve as a trusted connector in this evolving landscape. Over the past four decades, Malaysia has built one of the world's most comprehensive Islamic financial ecosystems. What distinguishes us is the completeness of the ecosystem.

Today, Islamic financing accounts for almost half of total financing within Malaysia's banking system. Islamic capital markets represent more than 64% of the domestic capital market. Malaysia continues to account for approximately 37% of global sukuk outstanding.

These strengths were not built overnight. They reflect decades of investment in institutions, market infrastructure, talent development, legal frameworks and Shariah governance. Collectively, these foundations have enabled Malaysia to develop an ecosystem that is deep and diverse, and capable of supporting sophisticated financial intermediation across borders and regions.

Allow me to highlight three recent developments that illustrate Malaysia’s role as a connector of capital and growth:

First, investor confidence. Last month, Malaysia's USD1.5 billion Global Sukuk attracted more than USD9.5 billion in orders and achieved an oversubscription rate of 4.7 times^[5]. It was also priced at record-low spreads. This reflects confidence not only in the issuance itself, but also in the broader resilience of Malaysia's economy and financial system. The issuance is also timely as it offers a strong benchmark for Malaysia's corporates and financial institutions for their fund raising in the international markets to meet their growing investment and financing needs. The issuance performance also affirms the strong demand and hence, investors confidence in Malaysia’s international offerings.

This strong investor appetite in our international issuances is reinforced by a deep and liquid domestic sukuk market^[6], supported by a strong Principal Dealer framework that facilitates efficient price discovery and liquidity management. At the same time, our efforts to broaden market participation have expanded opportunities for cross-border capital mobilisation, including enabling multilateral development banks and eligible development finance institutions to issue ringgit-denominated sukuk domestically. 

Second, market depth and sophistication. Malaysia’s Islamic financial markets have evolved significantly over the years. Transaction volumes in the unsecured interbank market have more than doubled over the last five years, exceeding RM1 trillion in 2025. This reflects a fairly mature market, capable of supporting efficient distribution of liquidity and risk management across the financial system.

The introduction of MYOR-i, the world's first transaction-based Islamic benchmark rate, further strengthens the transparency, enhances market integrity and provides a foundation for future market innovation. We have already seen an inaugural sukuk issuance referenced to MYOR-i by Cagamas. This is certainly a welcome development, and we expect to see increasing adoption, ahead of its mandatory adoption as the Islamic Benchmark Rate by 1 July 2027. Complementing this ecosystem is a growing Islamic fund management industry, with asset under management exceeding RM278 billion^[7] and an industry track record of over 20 years. This reinforces Malaysia's role as a platform for regional and global capital intermediation.

Third, globally recognised expertise. Malaysia’s ecosystem has cultivated institutions with deep expertise and strong track record across banking, capital markets, takaful, legal services and Shariah advisory. Our institutions have consistently been involved in structuring and advising on international sukuk transactions around the world. Our takaful and retakaful operators expanded their regional footprint. The share of cross border retakaful business for ASEAN markets by retakaful operators in Malaysia has increased to 22% in 2025, from less than 7% market share 10 years ago^[8]. These capabilities are valuable because connectivity requires full spectrum of services, trust and solid execution.

Promising Prospects Ahead

Similar to the global economy, the future of Islamic finance will be shaped by connectivity, digitalisation and the rise of new growth centres. As ASEAN deepens economic integration and trade links with the GCC, South Asia and Africa, demand for cross-border financing, treasury solutions and risk management tools will increase. The growing use of local and regional currencies in trade and investment settlements will create further opportunities for Islamic financial markets to expand and support more diversified and resilient financial flows.

Malaysia is preparing for this future. Through the Capital Market Masterplan 2026-2030, we are strengthening the foundations for a more innovative, sustainable and globally connected capital market. The Masterplan envisions the capital market growing from RM4.2 trillion in 2025 to RM20 trillion by 2045^[9]. As for the government sukuk market, as Malaysia advances towards its 3% fiscal deficit target by 2030, the outstanding MGII market is still projected to grow to over RM800 billion by then, further deepening the Islamic capital market and reinforcing Malaysia’s leadership in Islamic finance. Complemented with a growing takaful and increasing internationalisation of the economy and financial services, the vision is to position Malaysia as a leading platform for investment mobilisation and capital intermediation across the emerging growth corridors of the world.

Conclusion

As these new growth corridors emerge, the next phase of Islamic finance will be defined by its ability to connect regions, capital and digital infrastructures. We each bring different strengths, resources and opportunities. Strengthening the foundations for seamless cross-border capital mobilisation will thus require collective action in the three areas:

• Stronger industry connectivity for Islamic money markets and liquidity arrangements across currencies and jurisdictions;
• Broadening the availability of Shariah-compliant risk management and hedging solutions; and
• Scaling up Islamic trade finance to the rapidly growing trade corridors.

As we pursue these shared endeavour, let us embrace the words of Allah SWT in Surah Al-Hujurat:

'And We made you peoples and tribes so that you may know one another.'

Today, the importance of connectivity remains as relevant as ever.

Thank you.