Is This Stock Halal? A Guide to Shariah-Compliant Stocks in Malaysia
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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When it comes to investing, the first question most Malaysians ask is Is this stock halal? Is it SHARIAH-compliant?
This is a great question because our society has become more conscious about seeking rezeki (sustenance) through halal means.
Perhaps in the past it wasn''t given as much attention, but nowadays awareness has grown significantly. Well done! Because seeking what is halal is FARDHU (obligatory).
On top of that, when the topic of investing comes up, many Malaysians still have nightmares about investment scams they''ve read about in the papers.
They become fearful. That''s actually a good thing because this attitude makes them less susceptible to being influenced by dodgy schemes.
So this time, let''s talk about STOCKS on BURSA MALAYSIA. This is a form of investment that is properly regulated under Malaysian law.
Bursa Malaysia is the platform where stock trading takes place. Bursa Malaysia is a legitimate, authoritative, and recognised body. There are no investments here that generate profits out of thin air.
Within Bursa Malaysia, the body that determines whether a company is SHARIAH-compliant or NOT is the SC — Securities Commission Malaysia.
Referenced from the official SC website, the image below shows the MEMBERS OF THE SC''S SHARIAH ADVISORY COUNCIL (https://www.sc.com.my/my/members-of-the-scs-shariah-advisory-council/)
The Shariah Advisory Council meets twice a year, in MAY and NOVEMBER. Their decision is released to announce which counters are SHARIAH-COMPLIANT and which are NOT.
From here, Muslim traders and investors only select counters that are SHARIAH-COMPLIANT. For your information, MAHERSAHAM operates under broker Malacca Securities Sdn Bhd.
One of MPLUS''s products is the ISLAMIC STOCKBROKING WINDOW — in simple terms, an ISLAMIC CDS account.
The best thing about an ISLAMIC CDS is that if you accidentally press BUY on a non-Shariah counter, you won''t be able to purchase it. The order will be automatically DECLINED.
So from the halal perspective, it has been thoroughly taken care of. If you don''t have an Islamic CDS account yet or want to trade with MPLUS which offers among the lowest brokerage fees, you can register for a CDS account now.
Additionally, for your information, brokers that offer Islamic stockbroking services currently include 14 brokers as follows:
1) Affin Hwang Investment Bank Berhad
2) AmInvestment Bank Berhad
3) BIMB Securities Sdn Bhd
4) CIMB Investment Bank Berhad
5) Hong Leong Investment Bank Berhad
6) Jupiter Securities Sdn Bhd
7) Kenanga Investment Bank Berhad
8) Malacca Securities Sdn Bhd
9) Maybank Investment Bank Berhad
10) RHB Investment Bank Berhad
11) INTER-PACIFIC Securities Sdn. Bhd.
12) MIDF Investment
13) Public Investment Bank
14) TA Securities
Here we can see that investing in STOCKS is very safe and Shariah-compliant.
We just need to acquire knowledge to master this field of stock investing, both in terms of FUNDAMENTAL ANALYSIS and TECHNICAL ANALYSIS.
To gain this knowledge, MAHERSAHAM organises classes for you. You can check them out in the blogs section at /blogs
Hope this sharing has been beneficial.
What are you waiting for? Register for a CDS account with Mahersaham and you can join exclusive classes for Mahersaham clients.
The Securities Commission Malaysia (SC) releases the Shariah-Compliant Securities List twice a year, in May and November. You can check this list on the official SC website to find out whether a particular stock is Shariah-compliant or not.
The SC uses two levels of screening: quantitative screening (percentage of revenue from non-Shariah-compliant activities) and financial screening (ratios of conventional debt and investments). Stocks that pass both screenings will be classified as Shariah-compliant.
Yes, most major brokers in Malaysia offer Shariah-compliant services. These include Affin Hwang, BIMB Securities, CIMB, Maybank, RHB, and many more. Investors can choose a suitable broker and ensure their transactions comply with Shariah principles.
Yes, the Shariah-compliant status can change each time the SC releases a new list. A stock that was previously Shariah-compliant may be removed from the list if the company''s business activities or financial position no longer meets the criteria. Investors should always check the latest list.
Investing in Shariah-compliant stocks on Bursa Malaysia is safe and well-regulated — understanding how to check Shariah status ensures your investments are aligned with Islamic principles.
Open a CDS account today to start investing in Shariah-compliant stocks on Bursa Malaysia.
Download the free Stock Basics Ebook to understand the fundamentals of stock investing, including a guide to Shariah-compliant stocks.
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