KUALA LUMPUR (May 30): The Securities Commission Malaysia (SC) has added 41 stocks and removed nine from its list of shariah-compliant securities, effective Friday.

More than half of the additions are firms listed this year, including Oriental Kopi Holdings Bhd (KL:KOPI), Eco-Shop Marketing Bhd (KL:ECOSHOP), and HI Mobility Bhd (KL:HI), according to the SC’s biannual update. IOI Properties Group Bhd (KL:IOIPG) was also included in the list.

GuocoLand (Malaysia) Bhd (KL:GUOCO), the property arm of tycoon Tan Sri Quek Leng Chan, and Sarawak Cable Bhd (KL:SCABLE), which has fallen into PN17 status, were among those deleted from the list.

A stock deemed non-compliant will usually trigger a selldown by shareholders, especially institutional investors, who adhere to the set of Islamic investment principles. Apart from prohibition on activities considered haram (forbidden/unlawful), such as gambling or alcohol, a company that takes on excessive interest-based debt will also lose its shariah-compliant status.  

The SC updates its list semi-annually, on the last Fridays of May and November. The current updated list was compiled based on reviews of audited financial statements released between Oct 1, 2024, and March 31, 2025, as made available on Bursa Malaysia’s website.

In total, 850 out of 1,056 securities, or roughly 80%, on Bursa Malaysia are now classified as shariah-compliant. Sectors with the highest percentage proportion of compliant stocks include construction and energy, while the financial services sector has the fewest.

In a note on Friday, BIMB Securities said one of its stocks under coverage, Apex Healthcare Bhd (KL:AHEALTH), has now been reclassified as shariah-compliant, while Supermax Corp Bhd (KL:SUPERMX) remains non-compliant, likely due to its interest income.

Lotte Chemical Titan Holding Bhd (KL:LCTITAN), which remains shariah-compliant, could face removal in the November 2025 update, if its debt-to-total-asset ratio stays persistently above the 33% limit, the house flagged.

Overall, “this high proportion of shariah-compliant securities underscores Malaysia’s commitment to developing its Islamic capital market,” BIMB Securities noted. “It also provides significant opportunities for investors seeking compliant investment options.”