Securities Commission Malaysia — Shariah Screening Methodology

Effective 2019-01-01

Malaysian regulator standard with tiered 5%/20% benchmarks by sector.

Thresholds

{
  "cash_pct_max": 33,
  "tiered_by_sector": true,
  "cash_pct_enforced": true,
  "debt_pct_max_reit": 33,
  "debt_pct_max_general": 33,
  "income_non_halal_pct_max": 5,
  "haram_business_categories": [
    "conventional_banking",
    "conventional_insurance",
    "alcohol",
    "pork_products",
    "tobacco",
    "gambling",
    "adult_entertainment",
    "weapons"
  ],
  "income_non_halal_pct_max_tier2": 20
}

External source: https://www.sc.com.my/development/icm/shariah-screening-methodology