A values-based framework

A core commonality between Islamic banking principles and sustainability goals lies in their shared emphasis on ethical and socially responsible practices for transparency, accountability, and the promotion of activities that benefit society as a whole.

For instance, Islamic finance, grounded in Shariah principles, prohibits financing in industries deemed unethical, such as gambling, tobacco, and weapons manufacturing. This ethical screening ensures customers invest only in ethical products.      

The focus on corporate social responsibility and efforts also align with the United Nations (UN) Sustainable Development Goals (SDGs), in particular, decent work and economic growth (Goal 8), sustainable cities and communities (Goal 11) and responsible consumption and production (Goal 12). Beyond delivering economic returns, Islamic banking principles also place a significant emphasis on the well-being of the community, through practices such as providing alms (Zakat) and endowment (Waqf).           

An example is Maybank’s flagship corporate responsibility programme - the Regional Ramadhan Relief (RRR). The programme uses Zakat funds to distribute food items to underprivileged families during the fasting month, and has been running in Singapore since 2017. In 2024, Maybank partnered with PERTAPIS to support their outreach efforts to help the vulnerable in society. This initiative, along with other Zakat programmes, underscores Maybank’s commitment to giving back to the community, ensuring no one gets left behind.

Maybank has earned industry-wide recognition for offering outstanding Islamic banking solutions that cater to its customers’ ethical and financial aspirations. In 2024 alone, the bank won Best Islamic Bank in Asia and Malaysia, Islamic Finance Deal of the Year, and Best Sukuk Deal at Euromoney’s Islamic Finance Awards, adding to the many other accolades it has received over the past 10 years.

A practical focus on creating a brighter future

Islamic banking encourages risk-sharing, discourages excessive uncertainty or speculation by investors, and its contracts must be based on real assets and tangible economic activities. This promotes financial stability and long-term sustainable growth, aligning with sustainability efforts aimed at mitigating environmental risks and paving the way for a more resilient and prosperous future.

Maybank's commitment to sustainable finance is exemplified by its efforts in sectors such as real estate and transition financing. By providing financing solutions that support sustainable development and the transition to a low-carbon economy, the bank is actively contributing to a better tomorrow through its climate change investments.

This practical focus on creating a brighter future is deeply rooted in the core values of both Islamic banking and sustainability, making Maybank a valuable partner for individuals and businesses seeking to contribute positively to society.

Open to everyone, regardless of beliefs

Some may be surprised to know that Islamic banking is accessible to all, regardless of religious or cultural background. Its principles and practices of ethical, green and socially responsible banking can be applied universally and are especially relevant to people who are looking to align their financial decisions with their values.

Maybank Islamic banking’s ethical practices offer a range of solutions that cater to customers seeking more sustainable initiatives. Shariah law requires that all Islamic financial and business transactions be based on transparency, accuracy, and disclosure of all necessary information, which ensures customers are well-informed of what they are investing in.

The bank's commitment to inclusivity is further reflected in its efforts to broaden the reach of Islamic banking and sustainable finance solutions. For example, the bank offers Islamic banking products integrated with sustainable objectives where placements in Islamic deposits allow customers to offset their carbon emissions.

Conclusion

The overlap in Islamic banking principles and sustainability goals makes Islamic finance a suitable solution for customers looking to explore values-based financing.

As the world increasingly prioritises ESG considerations, Maybank's unique position at the intersection of Islamic finance and sustainability anchors its role as a valuable partner for those seeking to contribute to a more equitable and sustainable future through impactful economic value creation.

By embracing these shared principles, the bank is paving the way for a financial industry that not only generates economic value but also creates positive impact for society and the planet, in line with the UN’s SDGs.