Malaysia set to lead push into tokenised sukuk, disrupting Islamic finance

[KUALA LUMPUR] Malaysia, the world’s largest sukuk issuer, is preparing to shake up Islamic finance by making one of its most traditional products accessible at the tap of a smartphone. Tokenisation will slice these assets into bite-sized units, cheap enough for retail investors to buy.

This means that instead of needing to commit upwards of US$200,000 – the typical entry point for conventional sukuk – an e-hailing driver or a university student could buy a stake in a government-backed sukuk with as little as RM100 (S$30).

The Securities Commission Malaysia, in collaboration with sovereign wealth fund Khazanah Nasional, is set to roll out tokenised bonds and sukuk as early as this year. The move could bring what has long been the preserve of institutions and ultra-wealthy investors within the reach of ordinary Malaysians.