Bank Negara to issue strategy paper, exposure draft on shariah contract framework this year


Bank Negara governor Datuk Seri Abdul Rasheed Abdul Ghaffour.

KUALA LUMPUR: Bank Negara Malaysia (BNM) will be issuing a strategy paper and exposure draft on the Shariah contract framework this year.

BNM governor Datuk Seri Abdul Rasheed Ghaffour said the framework is under review to promote broader, more effective use of Shariah contracts. 

"The next Financial Sector Blueprint will also carry this broader shift. We want to align the financial sector more closely with Malaysia's future socioeconomic priorities,” he said during his special address at the Kuala Lumpur Islamic Finance Forum (KLIFF 2026) here today.

On Nov 11, 2024, the central bank published a discussion paper on the Shariah contract framework, outlining the proposed approach to reviewing the current Shariah contract-based policy documents.

It included the proposed framework design, alignment of Shariah contract applications with their intended objectives, recalibration of Shariah and operational requirements, as well as the review strategy and timeline. 

"This initiative aims to support the diverse application of Shariah contracts by Islamic financial institutions, in line with the Financial Sector Blueprint 2022-2026 strategy,” it said in a statement.

On the next blueprint, Abdul Rasheed said BNM would prioritise aligning strategies and capital with purpose by directing resources to higher-value sectors and renewable energy and strengthening resilience against climate and economic shocks.

He said the second priority would focus on innovating around real needs.

"We want to build on existing efforts to design solutions around the realities faced by households and businesses, particularly where needs remain underserved or unmet.

"This includes financial and technical support for the expansion of halal micro, small and medium enterprises,” he said.

Abdul Rasheed said the third priority would keep values at the centre, namely fairness, integrity, and empathy.

"These values must remain central to business decisions and market conduct. ‘Maqasid shariah’ is our compass. We want to get to impactful value-based outcomes,” he said.

The two-day KLIFF 2026, which began today, brought together more than 400 registered delegates from around the world, reaffirming its position as one of the region’s premier platforms for Islamic banking and finance. - Bernama

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