Best Islamic bank: CIMB Islamic
CIMB Islamic stood out in Malaysia’s Islamic banking landscape in 2025 by combining strong sukuk execution with targeted innovation and broader access to Shariah-compliant finance.
During the review period, the bank supported a range of sukuk transactions across sectors, playing a consistent role in pricing and liquidity while facilitating large, complex funding requirements within a fully Shariah-compliant framework.
The MYR6 billion sustainability merdeka sukuk wakalah illustrates this capability. Structured to include a consent solicitation exercise, it enabled refinancing of existing obligations while extending maturities to 20 years and reducing funding costs. The transaction demonstrated how sukuk structures can be used not only for capital raising but also for liability management at significant volume in Malaysia’s market.
Innovation in sustainability-linked structures was also clear. The MYR2.1 billion SD Guthrie sukuk incorporated key performance indicators (KPIs) tied to environmental performance, with defined mechanisms requiring funds to be allocated to sustainability initiatives if targets were not met. This embedded accountability directly into the financing structure, aligning Islamic banking products with national transition finance objectives.
At the retail and small and medium-sized enterprise (SME) level, new products expanded access to Islamic finance. The bank enhanced DURIAN-i, a retail investment account backed by sustainability-linked assets, widening participation in Shariah-compliant investment. FlexiCash-i provided a fully digital working-capital solution for SMEs, using a pay-as-you-earn structure that aligns repayment with cashflow cycles, improving financial resilience.
Additional SME initiatives, including government-backed guarantee schemes and targeted support for women-led and halal businesses, reduced barriers to financing and extended Shariah-compliant funding to underserved segments, reinforcing value-based intermediation within Malaysia’s Islamic banking system.
Best Islamic bank for ESG: HSBC Amanah
HSBC Amanah advanced environmental, social and governance (ESG) integration in Malaysia’s Islamic banking sector by combining sustainable finance activity with new transaction structures and participation in national frameworks.
During 2025, the bank translated its strategy into measurable capital deployment, arranging MYR1.313 billion in ESG sukuk and facilitating MYR1.743 billion in sustainable financing. This included activity across green, social and sustainability sukuk, alongside Islamic and conventional ESG financing, reflecting demand across multiple asset classes and use-of-proceeds (UoP) categories.
Its transaction activity was closely tied to real-economy outcomes. A MYR214.6 million green financing for solar photovoltaic projects supported long-term corporate power purchase agreements, directly contributing to Malaysia’s renewable energy target of 35% capacity by 2030 and demonstrating how Shariah-compliant structures can fund large-scale decarbonisation.
A MYR400 million Asean social, sustainable and responsible investment (SRI) sukuk for affordable housing attracted strong demand, while social financing for Paywatch expanded earned wage access for lower- and middle-income workers, strengthening household liquidity and advancing financial inclusion in a targeted way.
Product innovation extended beyond individual deals. The introduction of Malaysia’s first sustainable UoP Islamic repo created a repeatable framework to direct short-term liquidity into eligible green and social assets, embedding ESG considerations into short-term funding markets rather than limiting them to capital markets transactions.
Alongside this, HSBC Amanah contributed to the development of the domestic ESG ecosystem through its involvement in Bank Negara Malaysia’s Joint Committee on Climate Change and its work on the Sustainable and Transition Finance Guidance published in December 2025, which provides practical help for financial institutions and supports broader adoption of transition finance practices in Malaysia.
Best Islamic bank for wealth management: Maybank Islamic
Maybank Islamic has established a leading position in Islamic wealth management in Malaysia, built on a clearly defined lifecycle approach spanning wealth creation, accumulation, preservation and distribution.
This holistic model is supported by broad client coverage across the wealth spectrum, from mass and emerging affluent clients to high-net-worth (HNW) individuals, leveraging the scale and distribution reach of the wider Maybank Group.
The strength of this proposition is reflected in sustained growth momentum, with the wealth business delivering strong expansion in assets under management, rising client numbers and increasing fee income. This performance highlights Maybank Islamic’s ability to execute effectively at scale while deepening client engagement in a competitive domestic market.
A key differentiator is the breadth and innovation of its product suite. The bank provides access to a wide range of Shariah-compliant investment, takaful and wealth structuring solutions. Recent product developments include its first Shariah-compliant private trust structure for legacy planning and a single-contribution investment-linked takaful solution, addressing increasingly sophisticated client needs, particularly in intergenerational wealth transfer and long-term financial planning.
Digital capability plays an integral role in delivery. Clients benefit from tools such as MyWealth-i, which supports structured, needs-based financial planning, alongside integrated solutions such as Zakat on Demand and online investment platforms, enabling a more seamless and holistic wealth journey.
Maybank Islamic delivers a comprehensive and client-centric platform where advisory, product innovation and digital capability are brought together effectively. The result is the most compelling Islamic wealth management proposition in Malaysia.
Best Islamic structured finance house: HSBC Amanah
HSBC Amanah retains its position as Malaysia’s best Islamic structured finance house, reflecting its continued leadership in developing sophisticated Shariah-compliant structured products to meet client needs in a constantly shifting market.
Throughout 2025, the bank focused on refining and enhancing its structured products offering, building a more flexible platform to respond to stronger equity performance and rising risk appetite.
Demand for higher-yielding, non-principal-protected solutions accelerated, with HSBC Amanah expanding its range of autocallable structures beyond single underlying exposures to baskets of equities, enabling greater diversification alongside enhanced return potential. At the same time, the bank refined payout profiles through the introduction of bullet profit features, enabling investors to receive returns upfront – an approach that proved well suited to 2025’s market conditions.
The bank also strengthened its principal-protected solutions, introducing more dynamic payoff structures, including digital lock-in features that allow investors to secure gains while maintaining upside exposure. This broadened its appeal across varying risk profiles, from more conservative to yield-seeking investors.
Product development remained closely aligned to market themes, including the launch of multi-asset index-linked solutions incorporating equities and gold, supporting more balanced portfolio construction. HSBC Amanah’s ability to offer structured products across multiple currencies, tenors and underlying asset classes provides clients with a high degree of flexibility, reinforcing a platform capable of delivering tailored, Shariah-compliant solutions. This combination of innovation, breadth and execution continues to set the standard for structured products in Malaysia.
Best Islamic transaction bank: CIMB Islamic
CIMB Islamic’s performance in 2025 was defined by a clear objective: making Islamic transaction banking more accessible, practical and relevant to the evolving needs of Malaysian businesses. The bank built a broad ecosystem connecting financing, trade support, digital delivery and advisory services, helping businesses navigate growth, digitalisation and sustainability challenges.
A standout achievement was the launch of SME FlexiCash-i, described as Malaysia’s first digital Shariah-compliant working-capital solution for micro and small and medium-sized businesses. Delivered through the OCTO Biz platform, the facility combines rapid approvals, collateral-free access and a pay-as-you-earn repayment structure that aligns financing obligations with actual cash-flow performance. The proposition addresses a longstanding challenge for smaller businesses by providing liquidity without adding undue financial strain.
The bank complemented product innovation with targeted sector and community initiatives. Through SMEBizReady, CIMB Islamic created a platform that links financing with digital transformation and sustainability objectives. Since its launch, the programme has supported more than 1,000 SMEs and generated MYR1.6 billion in financing approvals, with a strong focus on manufacturing, high-tech industries and businesses pursuing automation and digitalisation.
The introduction of an SME Automation & Digitalisation Playbook further strengthened the bank’s role as a strategic adviser rather than simply a provider of capital.
CIMB Islamic also demonstrated a strong commitment to financial inclusion. Programmes such as its women-led SME financing initiative, Halal SME campaign, climate-resilience facilities and government-backed guarantee schemes expanded access to funding across a diverse range of businesses and sectors.
Beyond individual products, the bank’s transaction banking strategy is notable for the ecosystem it has built around clients. Through its SME Community Outreach Programme (SCOP) and Mini SCOP initiatives, CIMB Islamic has engaged hundreds of businesses nationwide, combining financing, advisory support, industry partnerships and digital enablement.
The result is a transaction banking franchise that is helping shape a more resilient, innovative and future-ready Malaysian business sector.
Best Islamic trustee/custodian bank: Standard Chartered Saadiq
Malaysia’s Islamic capital markets industry continues to grow in scale and sophistication, placing greater demands on trustees, custodians and post-trade service providers to combine operational excellence with rigorous Shariah governance. Standard Chartered Saadiq distinguished itself by delivering both.
Through its integrated Islamic securities services platform, the bank has built one of the country’s strongest Islamic trustee and custody franchises, supporting asset managers, insurers, development financial institutions and institutional investors across the investment lifecycle.
A defining feature of the bank’s proposition is its ability to offer end-to-end Islamic post-trade services through Standard Chartered Bank Berhad and Standard Chartered Saadiq Berhad.
The bank remains the only provider in Malaysia able to deliver a full suite of trustee, custody, fund accounting and transfer agency services under both conventional and Islamic banking structures. Its Shariah governance framework combines dedicated risk management, advisory, review and audit functions, ensuring that operational processes, reporting and client servicing remain aligned with evolving Islamic finance requirements.
The strength of this model translated into tangible business growth. During 2025, the bank recorded double-digit year-on-year growth in assets.
Technology and market leadership further strengthened its position. The bank is the first and only foreign institution appointed as a Bursa Malaysia Islamic securities settlement bank and remains the only digitalised trustee services provider in the market. It has continued to enhance automation across custody, fund administration and transfer agency operations while maintaining 99% straight-through processing rates for custody settlement. The launch of transfer agency services has also completed a fully integrated post-trade offering for Islamic funds.
Best sukuk house: CIMB Investment Bank
CIMB Investment Bank delivered an outstanding performance in Malaysia’s sukuk market in 2025, underpinned by clear leadership, consistent execution and a strong pipeline of innovative, market-defining transactions.
The bank maintained its position as the leading Malaysian ringgit sukuk arranger during the review period, commanding a market share of more than 35%, significantly ahead of its closest competitor.
The franchise distinguished itself through its ability to bring landmark and first-of-their-kind transactions to market. These included the largest transaction and consent solicitation exercise in the Malaysian sukuk market in 2025, as well as the largest sustainability-linked issuance of the year.
CIMB also supported multiple debut issuers and pioneered innovative structures, such as dual-tranche perpetual sukuk offerings and new sector participation in the sukuk market, demonstrating strong structuring capabilities and deep client engagement.
Innovation remained a defining feature of the bank’s sukuk activity. CIMB successfully executed numerous transactions featuring novel structures, including perpetual, subordinated and asset-backed sukuk, alongside tailored financing solutions addressing issuers’ specific capital and liability management needs.
Many transactions achieved strong investor demand, oversubscription and pricing compression, highlighting the bank’s distribution strength and ability to optimise outcomes for clients.
In parallel, CIMB reinforced its leadership in sustainable finance. It played a central role in several of the largest environmental, social and governance (ESG)-themed sukuk issuances in Malaysia and across Asean, while also contributing to the development of sustainable finance frameworks and market standards.
Best Islamic local currency deal: HSBC Amanah
Yinson Holdings Berhad MYR1.175 billion sukuk wakalah
Yinson Holdings Berhad returned to the public MYR market in December 2025 with a MYR1.175 billion five-year and seven-year sukuk wakala. HSBC Amanah acted as joint lead manager, delivering a well-executed dual-tranche structure that enhanced the issuer’s funding flexibility and investor appeal. The proceeds were used for refinancing and general corporate purposes.
This was the largest ever single A-rated offering in the MYR market, demonstrating standout scale and market leadership. Strong demand from a high-quality, institutionally anchored investor base led to an upsized transaction – from MYR1 billion to MYR1.175 billion – and tighter pricing than for Yinson’s 2021 debut.
Best Islamic project finance deal: CIMB
Projek Lebuhraya Usahasama Berhad (PLUS) MYR400 million Islamic medium-term notes
In January 2025, CIMB acted as principal adviser, lead arranger, lead manager and bookrunner for Projek Lebuhraya Usahasama Berhad’s (PLUS) Islamic medium-term notes programme.
The notes were issued in two tranches: one seven-year tranche of MYR150 million, and another 10-year tranche of MYR250 million. The issuance was structured based on the musharakah principle.
Strong investor appetite was shown by a 9.6x bid-to-cover ratio: banks and asset managers picked up the majority of the offering. Final pricing achieved no forward premium, despite the settlement date being more than one month away from the pricing date. Therefore, the deal displayed excellent refinancing efficiency, with the proceeds being used by PLUS to partially redeem existing Islamic medium-term notes on the relevant maturity date under PLUS’s sukuk programme.
Best Islamic real estate deal: CIMB
Visionary Heritage Berhad MYR114 million green sukuk wakalah
In May 2025, CIMB served as sole principal adviser, sole lead arranger, sole lead manager and sustainability structuring coordinator for Visionary Heritage Berhad’s (VHB) multi-currency Islamic asset-backed securities (ABS) programme. The total programme size is MYR2 billion and allows for sustainability ABS sukuk issuance.
CIMB oversaw a four-tranche issue totalling MYR114 million, consisting of three tranches of senior sukuk and a fourth of junior sukuk. This ABS sukuk programme was the first property ABS sukuk structured according to wakala principles.
VHB used the green sukuk wakala to acquire seven factory units in Johor Bahru that were certified ‘silver’ by GreenRE for sustainability, valued at MYR110 million.
Best sukuk deal: NewParadigm Securities
Exsim Capital Resources MYR455 million sukuk musharakah and up-to MYR100 million sukuk murabahah Asean green SRI sukuk
The best sukuk deal seen in Malaysia in 2025 was EXSIM Capital Resources’ tranche 7 Asean green SRI sukuk, which closed on July 17. The structurally creative issuance consisted of two separate programmes that were stapled together: a MYR455 million sukuk musharakah and an up-to MYR100 million in sukuk murabahah.
The sukuk was intended to diversify Exsim’s funding sources and accelerate the delivery of two green-certified residential developments in the market. NewParadigm Securities acted as financial adviser, deal structurer and lead manager for the transaction.
Investor demand was strong, with almost MYR1.2 billion in orders and a 2.6x bid-to-cover ratio. The sukuk successfully priced at a competitive yield of 4.8%, indicating investor confidence despite the size and complexity of the transaction.
The innovative structure, combining Shariah principles with securitisation and green financing, sets a new market standard for sustainability-linked sukuk in the Asean region, as a well as a step forward for the domestic securitisation market.
