Executive Summary

The Gap: Financial Literacy and Fragmented Advisory Practices

A central issue raised during the roundtable was the widening gap between the increasing complexity of Islamic finance and wealth management matters and the community’s ability to understand and navigate them effectively. Discussants observed that while information, products, and platforms exist, financial literacy remains uneven across the community, including among professionals, youth, and community leaders. This gap is not due to a lack of content, but rather the absence of structured, neutral, and consistent education that explains Islamic finance beyond surface-level contractual differences.

Discussants further highlighted that advisory practices are highly fragmented. Messaging differs across sectors such as wealth management, estate planning, takaful, and community finance, resulting in confusion and inconsistent understanding. Without common educational foundations, shared curriculum, or recognised reference points, individuals are often left to rely on informal advice or narratives rather than informed evaluation. The discussion underscored that fragmented literacy efforts weaken credibility, limit uptake of legitimate solutions, and prevent Islamic finance and wealth management from being understood as a coherent and credible discipline.

Governance and Trust: Why Self-Regulation Became Necessary

Roundtable discussions emphasised that trust has become a central constraint in advancing Islamic finance and wealth management awareness. Discussants noted that regulatory sensitivities around faith-based products, coupled with the absence of Shariah-specific advisory standards, have created uncertainty for practitioners and limited responsible outreach. Concerns over misrepresentation, overclaiming, or inappropriate promotion have contributed to cautious engagement by both regulators and industry players.

Rather than advocating for heavier external regulation, discussants broadly agreed that the ecosystem must first demonstrate internal discipline. This includes clearer boundaries between education and promotion, minimum disclosure expectations, and shared conduct standards for those communicating Islamic finance concepts. The discussion highlighted that self-regulatory guardrails are necessary not to restrict growth, but to build confidence among regulators, practitioners, and the public. By establishing proportionate and credible internal standards, the ecosystem can safeguard trust, reduce reputational risk, and create a more stable foundation for awareness-building and future development.

From Dialogue to Action: Purpose of the Forum Outcomes

The forum marked a transition from discussion to collective action. Through the Zakat Masterclass and the Industry Roundtable, participants examined governance, operational, and ecosystem challenges affecting Islamic finance and community-based initiatives in Singapore. The resolutions adopted reflect a shared commitment to coordinated capacity-building, clearer standards, and practical interventions aimed at strengthening trust, improving understanding, and supporting a more coherent and responsible ecosystem.

Industry Roundtable : Key Issues, Deliberations, and Outcomes

Problem Statement #1: Amplifying Awareness: How can industry players, regulators, and community partners collectively elevate public understanding of Islamic Finance and Wealth Management in a cohesive, consistent, and impactful way?

Discussants highlighted that awareness challenges stem not so much from the absence of information, but from fragmented messaging, limited coordination, and weak institutional signalling. While information and products exist, their impact is diluted by siloed efforts, uneven regulatory cues, and the absence of a unified narrative on Islamic finance within Singapore’s broader financial ecosystem.

Ustaz Kamal suggested that any event or initiative to be presented to MUIS to ensure proper alignment and barakah. He noted that certain institutions channel their funds, to mosques and MMOs with MUIS’s guidance or awareness, underscoring the importance of recognised institutional pathways even if not legally mandated. He also pointed out that Malaysia is significantly more advanced in this area, particularly through established qualifications and certifications such as ASAS, and suggested against reinventing the wheel. He emphasised that faster and more certain progress can be achieved through collaboration rather than isolated efforts.

Parekh identified lack of credible Islamic wealth management products as a core issue, alongside persistent financial literacy gaps. He questioned where Islamic wealth management fits within Singapore’s wealth management apex and highlighted the lack of credible Islamic wealth management products. He raised concerns that while Singapore provides security and funds are held locally, suitable Islamic products remain absent. He emphasised the need to change the narrative, reframing Islamic finance as a commercially competitive offering that appeals beyond faith-based considerations.

Discussants noted that initiatives to push awareness and engagement often intersect with regulatory considerations, particularly social cohesion restrictions. He emphasised that regulatory sensitivities must be accounted for when advancing Islamic finance–related initiatives.

Raj observed that there is currently no perceived necessity to look into Islamic finance. He noted that regulators remain cautious toward faith-based products and that the market lacks a sufficient pipeline of credible offerings. He argued that regulators would likely be more receptive if the community organised itself collectively, engaged regulators as a coherent sounding board, and pursued product innovation in a structured and professional manner. He cited examples from other jurisdictions, such as China, where only qualified individuals are permitted to sell products publicly, and noted that the foremost question among external stakeholders is often profitability.

Hashim shared that engagement with regulators becomes challenging when marketing references international Shariah standards and experts, such as AAOIFI and ARS. He noted that the absence of clear regulatory pathways for recognising such credentials leads to prolonged approval processes, constraining outreach efforts and limiting the ability of practitioners to build public awareness. This has pushed some market participants to operate in regulatory grey areas, increasing risk and uncertainty.

Arief (IdealRatings) highlighted negative public commentary on Islamic banking and noted the lack of concrete action despite stated support for Islamic finance growth. He observed that Islamic finance is not prioritised and that funds are held back as regulators do not flag the sector highly. He also noted that platforms engaging directly with MAS are sensitive and often require ministerial-level engagement. He stated that Islamic finance is sometimes viewed as incompatible with conventional frameworks.

Prof Belal identified that the inability to obtain credible ratings is a major barrier, as investors will not participate without them. He emphasised that real finance must be grounded in cash flow and the real economy, and criticised the repackaging of Islamic finance in conventional forms. He highlighted the absence of champions, noting that many players act as followers rather than leaders, and stressed the need for leadership to drive awareness and credibility. Without leadership willing to challenge prevailing norms, he argued, awareness efforts alone will remain superficial and unlikely to produce meaningful systemic change.

Problem Statement #2: Ensuring Integrity in Promotion: How can we establish clear guardrails and professional standards to guide Muslim finance professionals in promoting Islamic products responsibly, avoiding misrepresentation, and safeguarding community trust?

Discussants highlighted that the current licensing requirements for financial advisers do not, in themselves, address Islamic finance–specific considerations. Arieff noted that licensing to be a financial adviser is not an element of Islamic finance and stressed the need for dedicated modules to educate practitioners on Islamic finance beyond mere contractual differences, particularly in areas such as Shariah intent and substance. He illustrated this gap by noting that many advisers cannot meaningfully distinguish sukuk from conventional bonds beyond contractual form, and that simplistic claims such as “zero riba” in Shariah-compliant companies amount to misinformation rather than proper explanation of Shariah frameworks.

Building on this, Hamrey emphasised the importance of an issues-based, cross-institution engagement among practitioners that establishes common ground among practitioners. He highlighted the need to focus education on core issues and principles, supported by appropriate checks and balances, rather than fragmented or ad hoc learning. This was proposed as a practical mechanism for peer accountability, recognising advisers as frontline guides to the community rather than competitors segmented by institutional products.

From a regulatory and religious-governance perspective, Ustaz Kamal cautioned against conflating financial programs with Islamic religious matters. He stressed that a product being labelled Islamic does not automatically make its promotion or structure compliant, noting that certain bodies, such as arbitration or regulatory boards, are not positioned to decide Islamic matters. He emphasised that Islamic products and practices must be properly backed by fatwa to avoid misrepresentation. He warned that when advisers speak ‘authoritatively’ on religious rulings or fatwa without proper certification, they risk encroaching into areas governed by Singapore’s religious administration framework.

Nana highlighted that while financial advisers are required to be certified and licensed under existing frameworks, there are currently no Shariah-specific regulated advisory guardrails. This gap creates uncertainty in how Islamic products should be explained, promoted, and differentiated from conventional offerings. She contrasted this with Malaysia, where selling takaful products requires a separate qualification regardless of religious background, arguing that certification creates accountability and reduces the risk of unqualified individuals presenting themselves as Islamic financial advisers.

Addressing proportionality, Bee Bee suggested identifying a pragmatic “sweet spot” between immediate practical steps and more formal governance. She noted that lighter, workable measures may be appropriate at earlier stages, with more structured governance introduced as the ecosystem matures. She also noted that, as Muslims are a minority in Singapore, positioning Islamic financial products around broadly resonant ethical values could expand the addressable market and support commercial viability.

Finally, Ahmad Khalis underscored the importance of having guardrails in place while cautioning against over-regulation. He stated that setting internal standards would be beneficial and that authorities are likely to appreciate initiatives that demonstrate discipline and self-regulation rather than excessive or premature regulatory complexity. He drew parallels with professions such as law and accounting, noting that self-regulation is often jealously guarded, as failure to uphold standards invites more intrusive external regulation.

Resolutions

Resolution 1: Financial Literacy Awareness Programme

Objective:

To implement a structured and scalable financial literacy programme targeting key community segments, with the aim of improving understanding of Islamic finance and wealth management in a factual, neutral, and responsible manner.

Target Segments

The programme is open to members of the wider community regardless of background. Outreach efforts will include, but are not limited to, the following segments:

• General public and community groups
• Professional and industry networks
• Tertiary student societies and youth organisations
• Educational institutions, including secondary schools and universitie
• Religious and community organisations
• Social welfare beneficiaries and community support groups
• Educators, scholars, and thought leaders across relevant fields

Sector Champions

To strengthen outreach, coordination, and sustainability, Members agreed to identify, appoint, and support Sector Champions within key segments, including:

• Insurance and takaful industry
• Estate planning industry
• Asatizah and religious leadership network
• Community and NGO/MMO leaders
• Youth and tertiary education leaders

Sector Champions will serve as focal points for programme rollout, volunteer coordination, content localisation, and community mobilisation.

Member Commitments

Members committed to:

• Contributing voluntary service hours annually for their assigned segments or sectors
• Delivering or supporting workshops, literacy sessions, or advisory briefings
• Ensuring that all public education remains factual, neutral, and non-promotional, prioritising Shariah objectives and community benefit

Deliverables

The programme will produce:

• A standardised financial literacy module tailored to each target segment
• Appointment and onboarding of Sector Champions
• Annual reporting on volunteer hours and outreach metrics

Vote Outcome

Members unanimously adopted Resolution 1, affirming their commitment to financial literacy outreach and the establishment of Sector Champions.

Resolution 2: Establishment of Advisory Guardrails and Self-Regulation Framework

Objective

To introduce internal guardrails and standards governing the responsible promotion and advisory of Islamic financial products, with the aim of safeguarding integrity, consistency, and public trust.

Formation of the Working Committee

Members agreed to establish a Working Committee on Advisory Guardrails comprising:

• Representatives from advisory groups
• Individuals with experience in Islamic finance.
• Members with compliance, ethics, or regulatory-facing experience

Scope of Committee Work

The Working Committee will:

• Draft internal standards and guardrails for responsible advisory conduct
• Define minimum disclosure requirements, conflict-of-interest guidelines, and communication boundaries
• Develop a practical self-regulation mechanism to ensure consistency, quality, and ethical integrity across engagements
• Present a draft framework within an agreed timeline for member approval
• Establish an acceptance mechanism among members

Expected Outputs

The Committee is expected to deliver:

• Advisory Guardrails Document (Version 1.0)
• Advisory Conduct Checklist
• Internal issue escalation and review procedure

Vote Outcome

Members adopted Resolution 2, approving the formation of the Working Committee on Advisory Guardrails and the implementation of internal self-regulation frameworks.

Singapore Islamic Finance Forum Report 2025 : Zakat Masterclass