KUALA LUMPUR (Feb 18): Malaysia's Islamic capital market was valued at RM1.88 trillion as at end-2018 — down slightly from RM1.9 trillion in 2017 — and represented approximately 61% of Malaysia's overall capital market, according to the Securities Commission Malaysia (SC).

SC chairman Datuk Syed Zaid Albar, in his address at the Nomura Islamic Asset Management investment forum here today, said the industry has been supported by fund managers, stockbrokers and advisers, both foreign and domestic.

In his speech, the new SC chairman, who was appointed last November, encouraged market participants to embrace and adapt new opportunities in the market in view of several structural shifts observed, especially digitisation and demographic changes.

"As we look ahead, digitisation and demographic changes will continue to reshape market and it is critical for market participants to adapt to new opportunities amidst this backdrop. One of the key drivers for future growth of the industry is the paradigm shift in the investment preference by the emergence of the new generation of investors.

"The millennials, in particular, are accounting for a growing share of the investor base. There are studies which identified [that for millennials], there are greater awareness on sustainable, responsible and impact investing (SRI) and the propensity to align investment decisions with social causes and personal value. Millennials also see business as an agent of social and economic change," he pointed out.

As such, he said the ability for intermediaries to support and respond in this aspect will ultimately help enhance the value proposition and competitive advantage for Malaysia's fund management industry.

This will be helped by the inclusion of technology, which could strengthen business intelligence and data analytics, enhance investor experience and drive efficiency, he added.