KUALA LUMPUR (May 29): The Securities Commission Malaysia (SC) crossed off 18 stocks and added 44 names to its list of shariah-compliant securities.

Social media marketing firm Foodie Media Bhd (KL:FOODIE), contract manufacturer Globetronics Technology Bhd (KL:GTRONIC), and arcade machine trader Semico Capital Bhd (KL:SEMICO) are among those excluded from the list effective Friday. 

The latest review saw the additions including chip design firm SkyeChip Bhd (KL:SKYECHIP), automated test equipment maker VisDynamics Holdings Bhd (KL:VIS), and renewable energy firm Wasco Greenergy Bhd (KL:GENERGY). 

A stock deemed non-compliant will usually trigger a selldown by shareholders, especially institutional investors, who adhere to Islamic investment principles.

Apart from activities considered haram (forbidden) such as gambling or alcohol, a company that takes on excessive interest-based debt will also lose its shariah-compliant status. 

"High-profile exclusions will likely face mid-term institutional selling pressure from structural rebalancing outflows as shariah-mandated capital relocates to newly compliant alternatives," BIMB Securities Research wrote in a note on Friday. 

Meanwhile, key inclusions such as SkyeChip and VisDynamics will allow more exposure to the technology and engineering, particularly in areas linked to data centres and semiconductor, the research house said following the review. 

The list is updated semi-annually, on the last Fridays of May and November. The current updated list was compiled based on reviews of audited financial statements released on Bursa Malaysia’s website between Oct 1, 2025 and March 31, 2026.

The latest list now has 886 stocks classified as shariah compliant out of more than 1,000 counters on Bursa Malaysia.

In November, the SC's Shariah Advisory Council implemented a single unified 5% business activity benchmark to replace the previous dual-benchmark framework that splits activities into 5% and 20% thresholds depending on the nature of the operations.

The total revenue contribution from shariah non-compliant activities must strictly be less than 5%, reducing flexibility for companies by eliminating the previous 20% allowance for non-compliant activities.