Malaysia's Islamic Financial System

Malaysia's Islamic Financial System integrates banking, insurance, and investment services based on Shariah law, which prohibits interest and unethical practices. It operates alongside conventional finance, offering products like Islamic loans (murabaha), savings accounts, and sukuk (Islamic bonds). Governed by a strong regulatory framework and a Shariah Advisory Council, it ensures compliance with Islamic principles while promoting financial stability and growth. This system caters to Malaysia’s Muslim majority and attracts global investors seeking ethically compliant financial options. Overall, it provides a comprehensive, ethical alternative to conventional finance, fostering economic development aligned with Islamic values.