KUALA LUMPUR: In conjunction with the Islamic Financial Market Subcommittee (IFMC) roundtable, the Islamic banking industry signed the memoranda of understanding (MoUs) on the enhanced Sale and Buy Back Agreement (SBBA) and the Tahawwut Master Agreement (TMA).
A second cross-currency environmental, social, and governance (ESG) SBBA agreement was also signed between RHB Bank
Bhd, HSBC Amanah Malaysia Bhd, Standard Chartered Saadiq Bhd and UOB Malaysia Bhd.
In a statement today, Bank Negara Malaysia (BNM) said that the signing ceremonies signalled the commitment of Islamic banks to collaborate and establish bilateral agreements to deepen interbank trading activity, thereby providing further support for the Islamic financial market development.
"The agreements underscore the shared commitment of IFMC and industry participants, through the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), to effectively implement key market frameworks and uphold Malaysia’s leadership in Islamic financial market development,” it said.
The ceremonies were witnessed by BNM deputy governor, Adnan Zaylani Mohamad Zahid and assistant governor, Mohamad Ali Iqbal Abdul Khalid.
Meanwhile, IFMC also held a roundtable on Oct 15, 2025, at Lanai Kijang, BNM, in conjunction with the Global Islamic Finance Forum (GIFF) 2025, to discuss developments and initiatives for the Islamic financial market.
"The industry-led roundtable featured an exchange of insights and strategies to build a forward-looking and comprehensive Islamic finance ecosystem,” said BNM.
Adnan Zaylani, in his welcoming remarks, said that Islamic financial market participants need to continue innovating.
"There are emerging opportunities to be explored, such as sustainable and responsible investment (SRI) finance, waqf-based instruments and asset tokenisation to mobilise philanthropic capital.
"In this journey, it is worth reminding that it is not the intent of Islamic finance to replace debt-based instruments, but rather to innovate and expand the offerings to include risk-sharing instruments and blended finance, which could be beneficial for our new growth areas,” he said.
IFMC chairman Hanif Ghulam Mohammed, in his remarks, said that the roundtable highlights the industry’s collective resolve to shape a future-ready Islamic financial market ecosystem.
"The agreements and conversations held today signal a steadfast dedication to fostering innovation, enhancing market resilience and promoting global alignment.
"IFMC remains focused on translating these collaborative efforts into tangible outcomes that strengthen our market’s global standing,” he added. - Bernama
