Industry Article

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.

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 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.

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.

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 primary change involves the restructuring of financing repayments, which will now solely cover the principal amount. This adjustment means that students will no longer be required to pay any additional charges or interest, a move aimed at alleviating the financial burden on borrowers. In addition to this, the ministry has announced that no administrative fees will be applied to financings that have already been repaid. One of the more notable adjustments is the reversal of the 1% administrative fee that was previously deducted from student financings, with repayment amounts being recalculated accordingly. These measures are designed to ensure that the financings align more closely with the ethical and moral standards set forth by Shariah law, which prohibits the charging of interest or unjust fees. The ministry has expressed strong support for the president's decision, recognizing it as a reflection of the government's commitment to making financial transactions more just and equitable for students. The changes are also seen as a part of the broader effort by the Maldivian government to ensure that the country's financial systems operate in line with Islamic finance principles, promoting fairness and transparency.