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Shariah investing gains relevance as AI reshapes investment landscape, says Bursa CEO
Shariah investing has become increasingly relevant as digital technologies transform how investment decisions are made, while artificial intelligence (AI) reshapes everything from research and portfolio construction to risk management and trade execution. — AFP pic

KUALA LUMPUR, Aug 4 — Shariah investing has become increasingly relevant as digital technologies transform how investment decisions are made, while artificial intelligence (AI) reshapes everything from research and portfolio construction to risk management and trade execution.

Bursa Malaysia Bhd chief executive officer Datuk Fad’l Mohamed said amid this unprecedented pace of change, one thing remains constant — the need for trust.

“Markets may become faster, more connected and more sophisticated, but capital ultimately still seeks the same foundations — transparency, accountability and long-term value creation,” he said in his opening remarks at the Invest Shariah Conference 2026 here today.

Themed “Ethical Investing in a Digital and Volatile World”, the conference was co-hosted by Bursa Malaysia and CGS International Securities Malaysia Sdn Bhd.

Fad’l said the principles underpinning shariah investing, namely fairness, real economic activity, transparency, prudent risk-taking and responsible stewardship, resonate strongly with investors seeking resilience and sustainability in an increasingly uncertain world.

He said Malaysia’s Islamic capital market reached RM2.75 trillion in 2025, accounting for nearly two-thirds of the country’s capital market.

“About 81 per cent of our listed companies are shariah-compliant, while trading of shariah-compliant securities accounts for 69 per cent of Bursa Malaysia’s average trading value,” he said.

Malaysia has also cemented its position as the world’s largest environmental, social and governance (ESG) sukuk market, holding a 31.6 per cent share of global outstanding ESG sukuk as at June 30, 2026.

“This scale gives Malaysia a strong foundation upon which to further advance shariah investing as a mainstream force for economic development, innovation and sustainability.

“Underpinning this direction is maqasid al-shariah, the idea that capital should not only deliver financial returns but also contribute to broader economic and social good,” he said.

Echoing similar views, CGS International Securities Malaysia chief executive officer Khairi Shahrin Arief Baki said geopolitical tensions, inflation and changing monetary conditions are reshaping the outlook across markets and asset classes.

“In this environment, investors need to look beyond immediate price movements and consider whether expected returns are supported by sound fundamentals,” he said.

Khairi said ethical principles do not replace financial analysis but instead strengthen it by keeping transparency, accountability and long-term value in focus.

“At the same time, technology is changing how quickly and widely investors can act. Digital platforms have made investment information easier to obtain and transactions more convenient.

“This can support broader participation, but the more important question is whether technology helps investors make better-informed and more suitable investment decisions,” he added. — Bernama

 

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