Malaysia Can Emerge As A Global Pioneer In Shariah-Compliant Digital Finance
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, Aug 9 (Bernama) -- Malaysia possesses the necessary ingredients to be a global pioneer in Shariah-compliant digital finance, driven by the emergence of blockchain innovation and efforts to develop the world's first Shariah-compliant products within crypto banks, a global mobility entrepreneur said.
Singapore-based start-up company Multipolitan’s chief executive officer, Nirbhay Handa, said Kuala Lumpur (KL) should carve out its own niche in the global digital asset ecosystem by leveraging Malaysia's established Islamic finance ecosystem.
This would be a better approach than competing directly with other international financial centres, he told Bernama in an interview recently.
He said Malaysia should also focus on building greater institutional participation in the digital asset ecosystem rather than relying primarily on retail investors.
This is especially so given that KL emerged among the global top 10 cities in a comprehensive ranking under Multipolitan for its Crypto Friendly Cities Index 2026, published on its lifestyle and wealth advisory platform in June this year.
The ingredients favouring Malaysia’s potential to be a pioneer in Shariah-compliant digital finance include the availability of certified digital assets, specialised exchange accounts, asset-backed tokens, crypto mutual funds and non-interest staking protocols.
These products are halal as they avoid interest, excessive gambling-like speculation, high uncertainty and involvement in prohibited industries.
Co-founded in 2024 and backed by unicorn tech entrepreneurs, Multipolitan is a start-up company that provides a product-driven global migration and international mobility platform aimed at modernising the complex, bureaucratic immigration industry through a frictionless, software-driven experience.
"KL can have a niche-wide, mile-deep philosophy and remain a front-runner when it comes to Islamic finance," he said.
Handa said Multipolitan is also exploring Malaysia as part of its expansion plans, noting that beyond Islamic finance, KL is well-positioned to become a regional hub for shared service centres due to its strategic location, access to skilled talent and competitive operating costs.
Describing Malaysia’s geography as the “ultimate hedge" in the current global environment, Handa said the country offers companies access to quality talent at a moderate cost, making Malaysia’s capital city an attractive base for regional operations.
Institutional participation key to digital asset growth
Elaborating, Handa said Malaysia should focus on building greater institutional participation in the digital asset ecosystem to unlock broader economic benefits, rather than relying primarily on retail investors.
A retail investor is an individual, non-professional person who buys and sells stocks, bonds, or funds with their own personal money.
He said retail investors tend to be more speculative and are more likely to enter during bull markets and retreat during downturns.
"Institutional investors are in it for the long term. If Malaysia wants to benefit from Web 3.0, it needs to attract institutional investment into digital assets," he said.
Web 3.0 refers to the next generation of the internet powered by blockchain technology, enabling decentralised applications, digital assets and tokenised services.
He added that greater institutional adoption would help create high-value jobs and strengthen the digital asset ecosystem by attracting market makers, fund administrators and compliance professionals.
-- BERNAMA