KUALA LUMPUR: Syariah investing is evolving from a defensive strategy into one centred on structural growth, with opportunities emerging in artificial intelligence (AI), healthcare, private credit and digital infrastructure as the global Islamic finance industry enters its next phase, market experts shared.
ISRA International Consulting chief executive officer and associate professor Mohamed Eskandar Shah Mohd Rasid said syariah investing should no longer be defined by the lens of restrictions but by opportunities created from an evolving investment landscape.
“Historically, investors viewed syariah investments as more defensive because past data reflected a different market environment.
“The investment landscape today, however, is fundamentally different, and syariah-compliant assets are increasingly participating in growth sectors such as technology and healthcare,” he said.
Building on that view, Principal Asset Management Bhd chief executive officer and head Munirah Khairuddin identified healthcare as a structural investment opportunity for syariah investors, underpinned by technological innovation and long-term demographic trends.
“Healthcare is one of the most compelling long-term opportunities because the world is ageing.
“Malaysia is expected to become an aged society by 2030, while many developed economies and regional peers such as Singapore and Thailand are already experiencing this demographic shift.
“As populations age, healthcare, biotechnology and advances in medical science will become increasingly important investment themes, many of which will be accelerated by AI,” she said.
The discussion took place during the forum Ethical Investing in a Digital and Volatile World hosted by Bursa Malaysia Bhd
in collaboration with CGS International Sdn Bhd at the seventh Invest Syariah Conference 2026, yesterday.
The strategic agenda addressed the primary forces currently shaping institutional investor decisions.
Additionally, Munirah noted the future of Islamic finance lies not only in traditional asset classes but also in private markets, where syariah-first solutions are built on strong fundamentals instead of merely adding syariah compliance as a final layer.
She said in developed markets, private credit has played an important role in driving economic growth, adding that Malaysia is still at an early stage in developing this ecosystem.
Munirah added that diversification today is not only about managing risk, but also about positioning portfolios to capture long-term structural growth opportunities.
“It is about being positioned in the right areas of growth.
“Investors should look beyond the headline trends and understand the wider value chain.
“As private equity activity grows in Malaysia and across Asean, we need supporting structures such as private sukuk and syariah-compliant private credit,” she said.
Munirah explained these instruments can mitigate risk, improve access to capital and support business expansion.
“Private credit represents a significant opportunity, particularly in supporting small and medium enterprises and businesses that require alternative sources of financing,” she added.
In this regard, Mohamed Eskandar said Malaysia can strengthen its role in the global Islamic finance ecosystem by enabling institutions such as Bursa Malaysia to play a greater role in raising industry standards and supporting the development of capital markets in other countries.
He cited the country’s fast-evolving technology landscape as an example.
“Technologies such as nanotechnology, biotechnology and quantum computing are advancing at unprecedented speeds,” he said.
“This shows that we are facing a world where possibilities are expanding faster than our ability to fully comprehend their implications, and the challenge is determining how we harness these innovations responsibly.”
Mohamed Eskandar noted these technological disruptions also underpin new limitations for financial markets which inherently demand a stronger governance approach.
“When the potential of technology appears almost limitless, traditional methods of valuation become increasingly difficult.
“The next challenge is ensuring that we remain in control of technology.
“Innovation can empower societies, but it can also influence how people think, make decisions and perceive information.
“This is why governance, education and responsible adoption of technology are critical,” he said.
Bursa Malaysia chief executive officer Datuk Fad’l Mohamed said in his opening remarks that despite the unprecedented pace of change, the need for trust remains constant.
“Markets may become faster, more connected and sophisticated, however capital still seeks the same foundations: transparency, accountability and long-term value creation,” he said.
He added that syariah investing principles, namely fairness, real economic activity, transparency, prudent risk-taking, and responsible stewardship resonate strongly with investors seeking resilience and sustainability in an increasingly uncertain world.
