The Securities Commission Malaysia (SC) is exploring the establishment of the Islamic Social Exchange to strengthen environmental, social and corporate governance (ESG) programmes, especially to support the poor and the needy.
Chairman Datuk Seri Dr Awang Adek Hussin said with such a wide and extensive list of Shariah financial products available at the moment, ultimately, the focus must shift towards assessing the impact and effectiveness of the channels in realising the goals of Islamic finance.
“Such goals include building a stakeholder economy that supports fairness and addresses issues such as poverty and financial inclusion.
“By assessing the impacts of our initiatives, not only we can identify gaps and areas for improvement but more importantly, we will be better aligned with the objectives of Maqasid al-Shariah,” he said in his welcome address at the 14th SC-Oxford Centre for Islamic Studies (OCIS) Roundtable 2023 themed “Investing Towards the Common Good: Impact, Stewardship and Ethical Considerations” here today.
Awang Adek said the SC is planning to launch a principles-based Maqasid al-Shariah guidance before year-end to promote greater alignment of Islamic capital market initiatives to Shariah objectives.
He said the SC has taken on its stewardship role to issue the Corporate Governance Strategic Priorities 2021-2023 (CG Strategic Priorities) to promote ESG fitness and leadership of boards in listed companies.
“It (CG Strategic Priorities) outlines 11 targeted initiatives, which includes promoting awareness, capacity building and engagement, targeting directors, investors and youths,” he said.
Awang Adek said subsequently, the SC has updated its Malaysian Code of Corporate Governance (MCGG) to incorporate new best practices in listed companies when addressing ESG risks and opportunities.
“With a growing call to embrace impact investing as a more proactive and intentional approach to address pressing social and environmental challenges, there is an equally growing need to enhance and leverage on the stewardship roles.
“This is to create positive impact through Islamic finance,” he added.
