The regulator on Thursday said the ICM lab, also dubbed FIKRALab, is an initiative under the SC’s Capital Market Masterplan 2026–2030, aimed at advancing Malaysia’s capital markets.

“The FIKRALab builds on the SC’s long-standing efforts to nurture ICM innovation. These efforts began with FIKRA, Malaysia’s Islamic fintech accelerator programme, and later enhanced through FIKRA ACE, a targeted facilitation, industry engagement and ecosystem connectivity focusing on fintech,” the watchdog said.

The FIKRALab expands the ecosystem development beyond fintech-centric ICM innovation, SC said, adding that the lab enables deeper collaboration and co-creation between the regulator and the industry.

“It focuses particularly in developing new instruments and solutions that align with Maqasid al-Shariah.”

'“The FIKRALab will be undertaken in phases, beginning with a pilot project currently conducted by the SC in collaboration with a financial institution. This pilot project seeks to develop an innovative instrument aimed at unlocking Shariah-derived income within mixed-activity groups,” the regulator explained.

Applications for the first FIKRALab cohort will be opened in the fourth quarter, the Malaysian regulator said. "The expected outcomes of the FIKRALab include the development of new ICM use cases, products and infrastructure that demonstrate clear value-based outcomes and enhanced market confidence in innovation."

“The focus areas for the first cohort will include next generation products and services that offers entirely new value propositions, as well as sustainability and transition finance,” the watchdog added.

The Malaysian regulator appointed Kamal Azira Hassan and Adnan Zaylani Mohamad Zahid as new board members this month.

Bursa Malaysia in January announced new annual fixed regulatory fee applicable to the exchange based on the new capital markets and derivatives regulations.