KUALA LUMPUR: There is still room for improvement in the range and depth of shariah-compliant financial instruments to meet investors’ demand, according to Bursa Malaysia Bhd.

Bursa Malaysia head of investor development Stephanie Tan said the need for modernisation becomes evident to meet the demands of the ever-evolving market landscape.

“Emerging asset classes, financial instruments, and investment strategies present opportunities to thrive in this evolving environment.

“Embracing a broader array of financial instruments, such as sukuk, Islamic exchange-traded funds (i-ETF), and Islamic REITs, expands our access to diversified investment opportunities, enhances liquidity, and accommodates varying risk profiles,” she said during the opening remarks of Invest Shariah Conference 2023, on behalf of Bursa Malaysia chief executive officer Datuk Muhamad Umar Swift.

Tan added that as of June 2023, 81.9 per cent of the total market capital on Bursa was shariah-compliant.

“At the same time, the total market cap for the five Islamic REITs made up 43 per cent of the 19 REITs listed on the exchange.

“Meanwhile, there are six i-ETFs, making up 18.9 per cent of the net asset value of the 20 ETFs listed on Bursa,” she said.

Tan noted that the future for shariah investments appears exceedingly promising, thanks to the emergence and significance of shariah-compliant technological solutions.

“With technological innovations continually evolving, the industry is poised to experience unprecedented growth and global recognition,” she said.

Organised by CGS-CIMB Securities Sdn Bhd, the one-day conference titled “Navigating the Shariah Horizon: Diversifying Investment Frontiers”, was aimed to create awareness and explore interesting topics and ideas relating to shariah-compliant products and services, as well as the Islamic capital market. – Bernama