Deputy finance minister Ahmad Maslan said the guidance provides universal principles to enhance the ICM’s competitive advantage and fortify its impact and contribution to society and the real economy.

“The guidance would serve as a solution to the various challenges and opportunities in the market by emphasising substance, rather than form.

“The code of practice is to be adopted by shariah advisers and industry players in respect of various types of ICM products and services,” he said.

Ahmad said he hoped that all Islamic finance industry players will embrace it and use it to elevate shariah-compliant products for the people’s well-being,” he said when launching the guidance at the SC-World Bank Conference here today.

He said the guidance was formulated based on a range of international best practices to ensure its quality and effectiveness.

“Previously, the guidance was not as comprehensive, and we ensured that the new guidance is based on shariah objectives pertaining to religion, life, lineage, intellect, and wealth,” he added.

Meanwhile, SC chairman Awang Adek Hussin stated the principles-based document is not meant to replace the existing shariah requirements.

“Rather, it is to complement the SC’s existing rules and regulations,” he said.

“This is similar to the concepts of ‘halal’ and ‘tayyib’ where products should not only be permissible but also beneficial, sustainable, and good for society,” he said.

Awang Adek also said that as Malaysia is widely recognised as an ICM global leader, SC envisions the guidance will serve as a valuable reference document for industry players.

The ICM constituted 64% of Malaysia’s capital market, totaling RM2.4 trillion in value, as of August.

SC has engaged five Islamic financial institutions – namely Bank Islam, CIMB Islamic Bank, HSBC Amanah Malaysia, Maybank Islamic, and Standard Chartered Saadiq – to promote the adoption of shariah principles with respect to ICM products and services.