MALAYSIA: The Shariah Advisory Council (SAC) of Bank Negara Malaysia has made a ruling to clarify the Shariah requirements on the application of anticipatory hedging in Islamic finance. The ruling becomes applicable on the 29th May 2024.
Separately, the SAC decided that it is permissible for Malaysian Government Investment Issues (MGIIs) to be issued using the Wakalah concept and its variants as an alternative to Murabahah in order to diversify the underlying Shariah concept for the instrument. The SAC also decided that aside from tangible assets, intangible assets that are non-debt in nature like usufructs, services and financial rights are also permissible to be the underlying assets for the Wakalah-based MGIIs.
