@Halal July/August 2026 | Page 8

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FINANCE
@ Halal | July-August. 2026

Investing with greater purpose

• Malaysia’ s MSRI model merges Islamic finance
and ESG to ensure investments benefit society, environment, and economy.
• It aligns with the Human Economy concept,
promoting ethical, sustainable, and socially impactful investing.
• The zakat khultah initiative helps Muslim investors
efficiently meet zakat obligations while building
wealth
SUSTAINABLE RETURNS: Ethical investments are driving financial growth while supporting people, communities and the environment.

RE SPONSIBLE investing is gaining significance in Malaysia as the country strengthens the connection between Islamic finance and sustainability.

The new Maqasid al-Syariah in Responsible Investment( MSRI) model by Permodalan Nasional Bhd( PNB) highlights a growing emphasis on investments that deliver positive value beyond financial returns.
The model integrates Maqasid al-Syariah principles with Environmental, Social and Governance( ESG) practices, endorsing investments that benefit people, communities and the environment. This approach aligns financial success with moral responsibility and sustainable development.
Dr Zulkifli Hasan, Minister in
the Prime Minister ' s Department( Religious Affairs), described the initiative as a significant advancement for Malaysia ' s Islamic finance sector.
He stated that the model ensures investments are assessed not only for profitability but also for their impact on environmental sustainability, social wellbeing and responsible governance.
This perspective emphasises that wealth creation should provide meaningful benefits and remain grounded in Islamic values. It also reflects the core objectives of Maqasid al-Syariah, which aim to preserve public interests and prevent harm in society.
Zulkifli explained that combining these principles with ESG creates a balanced development model where economic progress, ethical responsibility and sustainable growth are
aligned. He added that halal profits should generate returns and contribute to society through responsible and transparent business practices.
Zulkifli noted that the model closely aligns with the Human Economy concept introduced by Prime Minister Datuk Seri Anwar Ibrahim. It encourages investors to consider the impact of their investments on individuals, communities and the environment, rather than focusing only on economic outcomes.
This shift highlights the increasing expectation that Islamic investments should provide both financial strength and meaningful social impact. It also reinforces that responsible investing can create lasting value for businesses, communities and future generations.
In addition to the MSRI model, Zulkifli welcomed the implementation of zakat khultah, describing it as
a practical solution for Muslim investors. This initiative enables Amanah Saham Nasional Bhd( ASNB) investors to fulfil their zakat obligations efficiently while maintaining competitive investment returns.
It supports long-term financial planning without increasing complexity. Zulkifli encouraged the Muslim community to fully utilise this facility to build wealth that benefits families, communities and future generations.
The government acknowledges the contributions of PNB and ASNB in strengthening Malaysia ' s Islamic finance ecosystem through responsible investment practices.
Collectively, these initiatives demonstrate how Islamic finance continues to evolve by balancing financial performance with moral values, sustainability and lasting social wellbeing.

Uzbekistan builds Islamic Finance future

UZBEKISTAN is advancing its Islamic finance sector by establishing a new Islamic Finance Council, a significant step toward a more organised financial ecosystem. This follows the introduction of a banking law permitting Islamic banks and services to operate within the national financial system.
The council will guide Islamic finance development by setting standards, advising financial institutions, and ensuring Shariah compliance. Comprising Shariah scholars and banking experts, it will also enhance cooperation among regulators, industry participants, and international
Islamic finance organisations.
This initiative demonstrates Uzbekistan’ s commitment to building a trusted financial environment that supports ethical investment and attracts global investors. It also underscores efforts to expand Shariah-compliant financial options for businesses and consumers.
The new banking framework builds on years of reforms introducing Islamic finance to Uzbekistan’ s financial sector. Earlier regulations permitted Islamic microfinance, while recent measures recognise financing models such as murabaha, mudaraba, musharaka, ijara, and salam.
These Islamic finance structures offer alternatives based on transparency, partnership, and shared benefits. By recognising these models, Uzbekistan aims to expand business opportunities and encourage broader participation in the Islamic finance market.
Under the updated system, Islamic banks and Islamic windows in conventional banks must meet stricter governance requirements. Institutions must establish Shariah oversight, prepare business plans, and adhere to international standards to maintain trust and credibility.
Uzbekistan is developing a national Islamic finance roadmap for 2026 to 2030 with support from the Islamic Financial Services Board. The strategy will address Islamic banking, capital markets, takaful, professional training, and legal reforms.
Through these efforts, Uzbekistan aims to become an emerging Islamic finance hub in Central Asia. The country’ s emphasis on regulation, expertise, and international cooperation may create new opportunities in the global Islamic finance market.
As demand for ethical financial solutions grows, Uzbekistan sees Islamic finance as a way to diversify its economy. The sector is expected to support businesses, attract investment, and strengthen international market connections.-