Islamic
Markets
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 Islamic Market 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.
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Islamic Markets
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SUKUK (ISLAMIC BONDS)
The sukuk market has been the driver of growth for the Malaysian Islamic Market 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 88% 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 Islamic Market 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 MARKETS
The Labuan International Financial Exchange (LFX), a web-based financial exchange provides
further impetus to the development of offshore Islamic Markets.
This wholly owned subsidiary of Bursa Malaysia is based in Labuan IOFC, a tax haven, and is
regulated by the Labuan Financial Services Authority (Labuan FSA).
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
