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In 2023/24, the market size for Islamic fintech in Malaysia amounted to around ** billion U.S. dollars, an increase of approximately *** billion U.S. dollars compared to the market size recorded in the previous year. The value of the Islamic fintech market in the country was forecasted to exceed*** billion U.S. dollars by 2028. 

Vast potential in Islamic banking

Islam is the majority religion in Malaysia, with around **** percent of the population belonging to this religious group. The country also has a dual legal system, with Quranic-based Sharia law mainly governing the personal or family matters of the Malay Muslim population. Thus, there is a large market for Islamic finance in Malaysia. In 2022, the Southeast Asian country was the -leading country with the largest Islamic banking assets in the world, after Iran and Saudi Arabia.

Call for innovation in Islamic finance

Acknowledging the potential of Islamic fintech, the current Prime Minister Anwar Ibrahim pledged 100 million Malaysian ringgit in May 2024 to foster innovation in Islamic finance. This financing has the potential to stimulate further growth in the country’s Islamic fintech market. As of 2023, there were **Islamic fintech companies in Malaysia. With support from the government, more Sharia-friendly fintech startups will likely flourish in the coming years.