About this Position Paper

The University of Malaya (UM) and International Center for Education in Islamic Finance (INCEIF) pulled together a team of researchers (“research team”), led by Dr Sherin Kunhibava, Senior Lecturer under Faculty of Law, UM to produce a research publication on the legal framework required for an Islamic Social Exchange in Malaysia. They received a grant from the Universiti Malaya Research Excellence Grant (UMREG) in January 2024 and are expected to complete the publication within the next 3 years.

One of the UMREG’s requirements was for the research team to have an industry partner and as such had reached out to the Institute for Capital Market Research Malaysia (ICMR). ICMR served as an intermediary to convene policymakers and industry players, together with the research team, to foster a more inclusive discussion and to ensure practical insights and perspectives from the various stakeholders are incorporated into the research analysis.

In the first quarter of 2024, ICMR conducted a series of Focus Group Discussions (FGDs). Alongside ICMR, UM, INCEIF and key individuals from the social development ecosystem, representatives from the Securities Commission (SC) also participated in these sessions. The primary objective of the FGDs was to discuss the feasibility and demand for a Social Exchange in Malaysia.

The FGDs were structured for three (3) distinct groups of participants, which are: –

1. Social enterprises;
2. Non-Governmental Organisations (NGOs); and
3. Funders and impact investors.

Another important objective was to engage grassroots representatives to gain deeper insights into their specific needs and interests, thus the need for three (3) distinct FGDs, to identify their unique challenges within the social impact ecosystem and explore the potential role of a Social Exchange in addressing these challenges.

This position paper, produced by ICMR, offers an independent perspective and aims to underscore the practical significance of the prospective establishment and execution of a Social Exchange in Malaysia, contributing to the ongoing discourse on sustainable social development and impact investment initiatives in the country. This paper also incorporates input from ICMR Distinguished Fellow, Tan Sri Andrew Sheng, and has been reviewed by him.

This position paper represents the independent views of ICMR and is not intended to either shape the outcome or to take precedence over the research paper that UM and INCEIF are working upon.

For the full version of this paper, please click here.