Industry Article

Malaysia's reliance on migrant workers, initially intended to fill labour shortages in 3D sectors (dirty, dangerous, and difficult), has contributed to wage suppression, socioeconomic inequality, and long-term risk to the Employees Provident Fund (EPF). This paper examines how weak labour governance facilitates the displacement of B40 locals from higher-value jobs, stagnates productivity, and intensifies competition with informal migrant labour, including undocumented workers. This paper advocates for a three-pronged reform strategy: prioritising the upskilling of the B40 group, implementing innovative migration governance, and aligning social protection systems with productivity initiatives. These integrated policies are necessary to protect the EPF's viability and promote equitable growth aligned with the Sustainable Development Goals (SDGs).

A groundbreaking pilot initiative that addresses two of Malaysia's urgent challenges - youth financial hardship and the growing needs of an aging population - Yayasan KUIS, in partnership with MBSB Bank and the United Nations Population Fund (UNFPA) Malaysia, launched the Community Credit Fund. The fund can empower students and communities as well as enrich older persons, laying the foundation for a future Community Credit Exchange. Held at Universiti Islam Selangor (UIS), the launch was marked by addresses from institutionals leaders and testimonials from students participants. The initiative provides essential stipends to financially vulnerable university students in exchange for their voluntary service in nursing homes. These services include companionship, educational support and basic assistance to elderly residents - strengthening intergenerational solidarity and fostering meaningful social impact.

In a significant shift towards financial inclusivity and adherence to Islamic guidelines, the Maldives has announced a comprehensive overhaul of its government-issued education financings. This move comes in response to a directive from Maldives President Dr Mohamed Muizzu, who called for all government financings for higher education, both within the Maldives and abroad, to comply with Islamic principles. The Ministry of Higher Education, which oversees the issuance and management of these financings, has already initiated steps to implement the changes.

The Maldives Monetary Authority (MMA) has officially launched the Maldives Islamic Social Finance Initiative (MISFI), marking a transformative step towards embedding Islamic social finance principles within the country's banking system. The initiative was inaugurated by President Dr Mohamed Muizzu at a high-level event attended by senior government officials, regulators and leaders from the financial services sector.

In a visionary move poised to reshape the future of global travel, Maldivian President Dr Mohamed Muizzu announced the designation and development of exclusive islands for halal tourism in the Maldives. The annoucement, made via the President's Official X (formerly Twitter) account, marks a strategic step toward redefining luxury through the lens of Islamic values and ethical hospitality. This landmark initiative will position the Maldives as a global leader in halal-friendly travel, combining world-class service with Shariah compliant experiences tailored for discerning Muslim travelers and ethical tourism investors.

The IFSB, in its Financial Services Industry Stability Report 2025, has commended the Maldives for its remarkable progress in the Islamic finance sector. Despite being a relatively young market in this space, the Maldives is now gaining global attention for its strong growth trajectory in Islamic banking and takaful. Based on the report, it is evident that the Maldives is emerging as a key player in the Islamic finance landscape, with an Islamic banking share of 13.5% in total banking assets as of Q3 2024. This reflects growing confidence and acceptance of Shariah compliant financial services within the country.