Bank Negara Malaysia Governor forecasts Islamic finance growth

Bank Negara Malaysia (BNM) Governor Datuk Seri Abdul Rasheed Ghaffour stated that Malaysia's Islamic finance industry is expected to exceed 50 percent of the country's total financial assets within the next few years, up from the current 48 percent.

The industry is playing an increasingly vital role in supporting businesses, households, and national economic growth. In 2025, the sector is projected to contribute RM160 billion in sukuk issuances to finance the real economy. Additionally, business financing by Islamic banks has grown by 9.7 percent, while micro-financing for micro, small, and medium enterprises (MSMEs) has seen a 13.3 percent increase.

Malaysia has maintained its position as a global leader in the Islamic finance market for 14 consecutive years, as recognized by the 2026 Islamic Financial Development Index (IFDI). Moving forward, BNM intends to collaborate with industry partners to drive innovation focused on digitalization, sustainable finance, and goal-based innovation.