The Islamic banking and takaful industry sustained its growth in 2022, gaining further share of the overall financial system. The industry also remained resilient with strong capital buffers to support intermediation activities.

Outstanding global sukuk as at end 2022 maintained double digit growth (+11.2%) to USD751.6 billion, despite lower issuances during the year amid global tightening of monetary policy. Overall, the global sukuk issuance in 2022 was led by sovereign and quasi-sovereign issuers (60.4%). Malaysia continues to spearhead the international sukuk market, commanding 40.3% market share of global sukuk outstanding and 43.3% share of global sukuk issued in 2022. Majority of global corporate sukuk (69.6% of total corporate sukuk issued) were also issued in Malaysia. 

According to the Islamic Finance Development Indicator (IFDI), the Islamic finance industry reached almost US$4.0 trillion in total assets in 2021 on a growth of 17% from 2020. The total global net income reported by Islamic financial institutions in 2021 also increased three times from 2020, signalling improved outcomes, especially for Islamic banks.

The Malaysian Takaful Association (MTA) has launched the Value-based Intermediation for Takaful (VBIT) Roadmap 2022 outlining the the desired outcomes, recommended initiatives that can be implemented, key performance indicators and providing a detailed timeline on the implementation. 

Five years after the introduction of Value-based Intermediation (VBI) in July 2017, Malaysian VBI community has made significant progress and steady growth. In 2021, the community has achieved the following progress, premised on four key themes.

Bank Negara Malaysia (BNM) has recently announced the five successful applicants for the digital bank licences as approved by the Minister of Finance Malaysia.

The Financial Sector Blueprint 2022 – 2026 sets out BNM's development priorities for the financial sector over the next five years. One of the thrusts includes“Advance value-based finance through Islamic finance leadership”with key area of sharpening Malaysia’s proposition as an international gateway for Islamic finance, among others.

A new biennial award introduced in conjunction with The Royal Award for Islamic Finance 2022 to expand support for impactful initiatives via Islamic finance. Themed ‘Advancing the Sustainability Agenda’, this inaugural award seeks to acknowledge the most outstanding initiatives that strengthen the economic and social resilience of financially impacted communities around the world through Islamic finance.

The framework acts as a guideline for Takaful Operators (TOs) in their implementation of Value-based Intermediation for Takaful (VBIT) by outlining the best conduct and practices in the industry. The framework is relevant to Family Takaful, General Takaful and Retakaful Operators.

The first cohort of Value-based Intermediation Financing and Investment Impact Assessment Framework (VBIAF) Sectoral Guides has been developed with the industry via the VBI Community of Practitioners (CoP), focusing on palm oil, renewable energy and energy efficiency.

Malaysian Islamic banks in collaboration with several ministries have introduced a liquidity scheme aimed to assist the cashflow position of SMEs with Government procurement contracts.

The infographic on Islamic finance in Malaysia encapsulates the following summary: 1. A snapshot of Islamic banking, takaful and Islamic capital market in Malaysia; 2. Malaysia's diverse set of players; and 3. Key milestones/innovation in Islamic financef focus