The 303rd Shariah Advisory Council of The Securities Commission Malaysia Meeting (13 August 2026)

EXTENSION OF THE APPLICABILITY OF THE DEBT RATIO BENCHMARK UNDER SHARIAH SCREENING METHODOLOGY FOR UNLISTED MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs)

The Shariah Advisory Council (SAC) of the Securities Commission Malaysia (SC) previously approved the Shariah Screening Methodology for Unlisted Micro, Small and Medium Enterprises (MSMEs) as a facilitative mechanism to support the assessment of Shariah-compliant investment opportunities in the MSME segment.

Under such methodology, the financial ratio benchmark for total debt over total assets (Debt Ratio) of less than 49 percent was applicable for the MSMEs until 6 August 2026.

In view of the expiry of the applicable period, the SAC deliberated on revising the Debt Ratio benchmark to less than 33 percent or further extending the existing benchmark of less than 49 percent.

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