Rising Preference for Shariah-Compliant Finance Among 65% of Malaysian Muslims, Hong Leong Islamic Bank Survey Reveals

A recent survey by Hong Leong Islamic Bank (HLISB) has found that a significant majority of Malaysian Muslims—about 65%—prefer to use banking and investment products that comply with Shariah law. The survey, which included 690 Muslims ranging from 18 to 77 years old, revealed a strong inclination towards financial products aligned with Islamic principles. Most of those surveyed reported a household income of less than RM10,000 per month, indicating that this preference spans a wide demographic.

The survey also highlighted that nearly half of the respondents (47%) are already involved in investments, with the most popular choices being Amanah Saham Nasional Berhad (ASB) funds, Tabung Haji savings, and investments in gold. These are closely followed by investments in Malaysian stocks and high-income savings accounts. Despite a common perception that Islamic investment products might offer lower returns, HLISB is committed to ensuring that its Shariah-compliant options remain competitive, delivering benefits and returns that are on par with conventional financial products.

According to Dafinah Ahmed Hilmi, CEO of HLISB, these findings present a promising opportunity for the bank. She noted that with Muslims making up around 63.5% of Malaysia’s population, the strong demand for Islamic banking products is clear. Hilmi emphasized that Islamic banking is not just about personal wealth growth—it’s a key component of a broader Islamic wealth management framework. This framework, she explained, covers all aspects of wealth management, from creation and accumulation to distribution and preservation, all guided by Islamic values and Shariah principles. It also encourages social responsibility, ensuring that wealth benefits both those who are in need and those who have more to give.

HLISB is well-positioned to meet this growing demand, offering a range of Shariah-compliant wealth management services designed to help customers build and diversify their investment portfolios. The bank aims to be the go-to platform for Malaysians looking to start or expand their Shariah-compliant investments.

The survey also revealed that while 84% of respondents aspire to be wealthy, 77% do not have a formal financial plan. This highlights the need for comprehensive Islamic wealth management strategies that not only educate but also guide individuals in building a financial future aligned with Islamic principles.

Akmal Solihi Mohd Yazid, HLISB’s Head of Shariah, underscored the importance of managing wealth responsibly according to Islamic teachings. He pointed out that acquiring, spending, and preserving wealth should all be done in accordance with Shariah law. HLISB is dedicated to providing wealth solutions that meet these stringent guidelines, supported by a team of Shariah experts and a proven track record in Islamic finance.

HLISB offers a variety of Shariah-compliant investment options, including the well-regarded HL Dana Makmur and HL Dana Maa’rof funds, which have delivered impressive returns over the past five years. For those looking for lower-risk, shorter-term investments, the bank’s Term Investment Account offers a flexible option, with a minimum investment of just RM500.

To further support its customers, HLISB has launched a wealth management podcast, “Market Matters with HLB,” which provides valuable insights and information about investments and the bank’s wealth management services.

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