KUALA LUMPUR: The Securities Commission Malaysia (SC) has introduced the Shariah Screening Assessment Toolkit (Toolkit) for unlisted micro, small and medium enterprises (MSMEs).
Executive chairman Datuk Syed Zaid Albar said the Toolkit is a major initiative by the SC to provide guidance in screening the Shariah status of unlisted MSMEs, as part of the SC’s ongoing efforts to enhance the ecosystem for Shariah-compliant fundraising activities.
He said the Toolkit will primarily benefit the equity crowdfunding and peer-to-peer financing platform operators, as well as Shariah advisers.
"We anticipate that the introduction of the Toolkit will encourage more Shariah-compliant offerings on alternative market-based fund raising platforms.
"It will also result in more diversified Islamic investing across asset classes and economic sectors, and enable end-to-end Shariah compliance among MSMEs in the Halal sector," he said in his keynote address at the SC-Halal Development Corporation (HDC) Forum 2021 held virtually today.
The Toolkit includes a series of questions that are based on the Shariah screening methodology for the MSMEs, endorsed by the SC’s Shariah Advisory Council (SAC).
Syed Zaid noted that MSMEs are the backbone of the Malaysian economy, contributing close to 40 per cent of the gross domestic product (GDP).
"The global response to the pandemic has affected all of us, but the MSMEs were one of the hardest hit segments.
"Considering the critical role they play in our economy, we must spare no effort to ensure our MSMEs are able to pull themselves out of the current quagmire, to flourish again," he said, adding that the Halal economy could play a critical role in the growth and success of MSMEs.
Therefore, he said appropriate and effective measures must be put in place to support a comprehensive end-to-end Shariah-compliant ecosystem for emerging businesses in the Halal economy.
Meanwhile, Syed Zaid said given that Malaysia’s Halal economy is projected to grow to US$113.2 billion (US$1=RM4.22) in 2030, better funding access will certainly assist Halal industry players to capitalise on opportunities for expansion.
"In the long term, market-based funding obligations will also provide MSMEs the necessary discipline to better manage their cash flows and finances," he added. - Bernama