While Malaysia’s economic fundamentals remain sound, geopolitical tensions may have indirect spillover effects through higher energy prices, market volatility, and potential disruptions to trade and supply chains. These factors could impact business costs, inflation, and cash flows for certain segments of the economy. The Islamic banking industry remains vigilant and ready to respond to these evolving risks.
Grounded in Shariah principles and aligned with priorities set by Bank Negara Malaysia, the industry continues to uphold values of justice, compassion, and social responsibility, while advancing Values-based Intermediation (VBI) to deliver sustainable and inclusive outcomes. In 2024, Islamic financial institutions channelled RM148.6 billion into VBI-aligned activities, including support for SMEs, green financing, and social initiatives, reinforcing resilience in key sectors of the economy.
Islamic banks are also advancing BNM-introduced initiatives, including the use of risk-sharing instruments through i-CITA, as well as programmes like iTEKAD Protection. These initiatives aim to strengthen financial resilience, particularly among microentrepreneurs, and promote more sustainable financial outcomes beyond short-term relief measures.
The industry stands ready to support customers facing financial challenges through responsible and Shariah-compliant solutions, including restructuring and rescheduling where appropriate. Customers are encouraged to engage with their respective banks early.
AIBIM emphasised that support mechanisms remain available, and the industry will continue working closely with regulators and stakeholders to safeguard financial stability and support inclusive, sustainable growth during this period of uncertainty.
