Islamic Capital Market (ICM)

Bursa Malaysia, a single exchange group, is designed to meet the growing demands of both foreign and local investors. We offer a holistic range of innovative ICM products from equities, derivatives, commodities, to debt securities, across all sectors and industries:

SHARIAH-COMPLIANT STOCKS
88% of the securities currently listed on Bursa Malaysia are Shariah-compliant and represent two-thirds of Malaysia’s market capitalisation. At Bursa Malaysia, choices are abundant as investors have access to an extensive selection of Shariah-compliant stocks across diversified industries for broader and deeper investment portfolios.

ISLAMIC EQUITY INDICES
We are the world’s only exchange with three comprehensive and transparent Shariah screening processes: FTSE Group, Yasaar Ltd and the SC’s Shariah Advisory Council (SAC). These screening processes that look at both qualitative and quantitative measures help us meet local requirements and align us with international standards. The FTSE Hijrah Shariah index (FBM Hijrah Shariah) and the FTSE Bursa Malaysia EMAS Shariah index (FBM EMAS Shariah) provide a broad benchmark for Shariah-compliant investment. These indices are designed for investors who wish to invest in Shariah-compliant stocks that are consistent with Shariah principles.


SUKUK (ISLAMIC BONDS)
The sukuk market has been the driver of growth for the Malaysian ICM with many world’s first issues, cemented by sizable amount and innovative structures. Malaysia is one of the largest sukuk issuance centres in the world and accounts for approximately two-thirds of the global sukuk outstanding. We also provide a facilitative and progressive environment for sukuk issuance by local and international issuers. Issuing sukuk in Malaysia is cost-effective as International Issuers have the flexibility to issue either ringgit or non-ringgit denominated sukuk using international documentation, based on UK or US laws and the choice
of international credit rating agencies.

SHARIAH ETF
ETF has been one of the most innovative investment vehicles over the last two decades. We are the first to list Islamic ETF in Asia. Unlike other conventional ETFs, Shariah ETF is an excellent alternative for investors seeking Shariah-compliant investment instruments. The Dow Jones Islamic (DJIM) index tracks amongst the largest blue chip listed Malaysian Companies that comply with Shariah investment guidelines. With 85%of the securities listed on Bursa Malaysia being Shariah-compliant, we are perfectly placed to create a variety of Islamic ETFs that are transparent and cost-effective, providing greater access for investors to efficiently diversify.

ISLAMIC REITs
To keep pace with the ever-changing appetite of investors, Malaysia proactively provides innovative ICM products that best meet the market demand. Apart from being the first to introduce Islamic REITs guidelines, we have the world’s first plantation REITs and hospital REITs. We are also the first jurisdiction in global Islamic financial universe, as well as the first market in the world to list an Islamic REITs. These efforts have facilitated the creation of a new asset class for investors and fund managers to diversify investment sources and portfolios.

SHARIAH-BASED UNIT TRUST FUNDS
For industry players who wish to invest in a diversified portfolio of Shariah-compliant securities, we have for you the options of Islamic equity funds, sukuk funds and other funds - managed by competent and professional managers in accordance to the Shariah principles.

ISLAMIC STRUCTURED INVESTMENT PRODUCTS
Malaysia’s wide range of Islamic products caters to various investment styles and meet specific risk profiles, attractive return requirements and high market expectations. Via our local and international brokers, our innovative Islamic structured investment products offer unique opportunities that allow for better risk management and provide investors with valuable portfolio diversification tools in a vibrant market environment.

OFFSHORE ISLAMIC CAPITAL MARKET
The Labuan International Financial Exchange (LFX), a web-based financial exchange provides further impetus to the development of offshore Islamic capital market.
This wholly owned subsidiary of Bursa Malaysia is based in Labuan IOFC, a tax haven, and is regulated by the Labuan Offshore Financial Services Authority (LOFSA).

LFX offers listing and trading facilities for a wide range of financial and non-financial products, as well as Islamic financial products. The rules of LFX are designed to be
liberal and cater to the listing of a variety of multi-currency securities and instruments while offering speedy approval processes and attractive tax benefits.
LFX website: www.lfx.com.my