It is a pleasure to be here today at this year’s Global Islamic Finance Forum. Our theme — “Bridging Tradition and Tomorrow: Advancing Business, Empowering Communities” — is a reminder that the future is not merely a destination to be discovered, but a direction to be chosen. To choose wisely, one must take a moment, to look back at the values and systems that once made commerce a conduit for shared prosperity and finance for a force for human progress.
Over the past three decades, the world economy has been shaped by forces of globalisation. Between 1990 and 2020 — global trade in goods and services expanded more than fourfold, which has helped lift over a billion people out of extreme poverty[1]. Capital flowed more freely; and supply chains stretched across continents; and technological advances reduced barriers that once divided nations. What enabled global trade to flourish then — was not simply commerce, but connectedness — a common vision for integration that transcended borders and beliefs.
This recent decade, however, has witnessed a reversal or a redrawing of that map. Trade tensions have risen; strategic rivalry weighs on global supply chains; and geopolitical rifts have brought further pressure on global growth. The outlook remains uncertain, with the International Monetary Fund (IMF) projecting a global growth of approximately 3% — and this is below the pre-pandemic average. As we contemplate the reshaping of global trade in the 21st century, it is worth pausing to reflect on the earlier moments in history, when trade began to flourish across civilisations and become a central pillar of stability, prosperity and peace.
Long before the rise of modern financial systems, Muslim merchants pioneered financial tools that enabled long-distance trade with surprising sophistication. Instruments such as the sakk[2] — an early form of the modern cheque — as well as early trust-based money and credit transfer systems such as the hawala, allowed capital and funds to flow securely between markets and across countries. The principle of partnership — offered risk-sharing mechanisms that echo in venture capital and Islamic finance. The strength of these innovations lay rooted in the Quranic injunctions on fairness, trust, and mutual benefit.
History tells us that trade and finance are intricately linked. The arteries of commerce — the movement of goods and services — are the same through which capital and confidence flow. When one clogs, the other cannot circulate freely. The fracturing of global trade creates friction, reduces liquidity and increases costs. Today’s environment makes the business of financial intermediation even harder, and risk management more complex. This is exactly why, the purpose and design of finance really matters.
A financial system that is anchored on long-term value creation — better serves the economy and society. These principles are not abstract precepts; they are embedded in the architecture of Islamic financial instruments — guiding how risk is shared; how wealth is circulated; and how transactions are anchored in productive economic activities. Several recent studies[3] have found that Islamic financial institutions demonstrated greater resilience during economic downturns due to their asset-backed and risk-sharing nature — a timely reminder that financial systems rooted in real economic activity and equitable risk distribution can ensure stability in turbulent times.
In today’s quest for economic stability and inclusive growth, Islamic finance offers practical tools. Durable instruments such as zakat and waqf have long supported communities — strengthening the social fabric of society. Such instruments also provide counter-cyclical support to economy and financial systems. When economic conditions tighten, zakat also acts as a stabilising force. It channels financial support to the needy, supporting the underpinning of demand in the economy and providing a safety net for those at risk. Similarly, the beauty of waqf lies in its continuity and long-term impact. These endowments could be utilised to generate sustainable income streams — often funding education; healthcare; infrastructure; and social welfare.
As we envision the next phase of growth, allow me to share five developments that Malaysia is pursuing in advancing the Islamic financial ecosystem:
Yang Amat Berhormat, Ladies and gentlemen,
In closing, the global Islamic finance industry is on course to surpass USD9.7 trillion by 2029[4]. But this journey cannot be defined by scale alone — it must be underpinned by robust substance. This promising growth requires strong leadership and innovation with purpose. I hope this forum will serve as a bridge, honouring the wisdom of our values while boldly reimagining the future of Islamic finance.
Thank you.