KUALA LUMPUR (Sept 11): Prime Minister Datuk Seri Anwar Ibrahim on Thursday called on Malaysia’s Islamic finance industry to move beyond its traditional focus on regulatory compliance, and become a more transformative force for society.

He stressed that Islamic finance must play a key role in addressing pressing issues such as inequality, social justice, and sustainability — guided by maqasid shariah, the higher objectives of Islamic law.

“The ethos of Islamic finance must be rooted in maqasid shariah, which emphasises fairness, risk-sharing and social well-being. Its true measure of success will never be the size of assets alone, but the lives transformed and the future secured,” Anwar said.

He was speaking at the 15th Global Islamic Finance Awards (GIFA) event, where he was conferred the Global Islamic Finance Leadership Award 2025. The event, which honoured nearly 80 recipients this year, also recognised Ethiopia’s Prime Minister and Nobel Peace Prize laureate Abiy Ahmed.

The ceremony began with verses from Surah Al-Imran (3:130–134), highlighting values like avoiding usury — charging very high and unfair interest on loans, and encouraging patience, forgiveness, and generosity — all core principles of Islamic finance.

Anwar urged global regulators, financial institutions, universities, and partners to stay alert and strengthen the Islamic finance system. He said the industry’s future relies on adopting new tools and innovations.

He highlighted green sukuk for funding sustainable projects, digital platforms to increase financial access, and expanding social finance like zakat and waqf to help disadvantaged communities and reduce inequality.

“As the world undergoes rapid changes, Islamic finance must adapt and innovate, not just following the financial instruments, whether from New York or London. We must invest in talent development, regulatory excellence, and innovation, while nurturing a new generation of ethical leaders,” the prime minister added.

Closing his speech, Anwar reflected on Malaysia’s pioneering days in Islamic banking in 1983, when sceptics derided the move as a “return to the age of the camels”. Four decades later, he said, Islamic finance has gained acceptance and participation from both Muslims and non-Muslims — a success of Malaysia’s vision.

“It shows that we can offer a more just, inclusive and sustainable alternative through vibrant, ethical Islamic instruments,” he said.