KUALA LUMPUR (Sept 11): UOB Kay Hian Securities (M) Sdn Bhd has officially launched 16 shariah-compliant global commodity futures, making it the second brokerage firm in Malaysia to offer such derivatives. 

With an aim to address the increasing demand for shariah-compliant global derivatives products, its chief executive officer David Lim said UOB Kay Hian fully supports the efforts by the Securities Commission Malaysia and Bursa Malaysia in empowering the development of Islamic finance, specifically in the derivatives capital market.

"We believe that shariah-compliant investments play an important role in shaping a fairer, more stable, and ethical financial future, as well as ensuring shariah objectives are secured," he said during his opening speech.

"As the shariah-compliant derivatives market was previously limited, this launch offers a range of products that have been carefully reviewed, ensuring full compliance with shariah principles. With this, we are confident that these products will open up new opportunities for investors, both in Malaysia and globally," Lim added. 

The shariah-compliant commodity futures offered by UOB Kay Hian are traded on major global markets including Bursa Malaysia Derivatives (BMD), New York Mercantile Exchange (Nymex), Chicago Board of Trade (CBOT), and Singapore Stock Exchange (SGX).

“This provides investors with greater flexibility and exposure to various asset classes meticulously reviewed to adhere to Islamic principles, ensuring that they are permissible under shariah law. By investing in these products, investors can contribute to a more just and equitable financial landscape,” Lim explained.

The derivatives offered include crude palm oil futures (FCPO) on Bursa Malaysia, Nymex light sweet crude oil (CL), soybean oil futures on CBOT, and SICOM rubber futures on SGX. The full list of shariah compliant global commodity futures offered by UOB Kay Hian is up on its website. 

"This launch is a testament to UOB Kay Hian's commitment in providing a variety of investment options, to meet the demands of modern investors. We hope that this initiative will attract more investors, especially from the Bumiputera community, and be a catalyst for innovation and growth in the Islamic finance sector," Lim concluded.