MALAYSIA LIST OF ISLAMIC BANKS

Islamic banks currently operating in Malaysia’s financial sector

Islamic banks currently operating in Malaysia’s financial sector comprise 16 BNM-licensed fully-fledged institutions: 11 domestic (Maybank Islamic, Bank Islam, Bank Muamalat, CIMB Islamic, RHB Islamic, Public Islamic, Hong Leong Islamic, Affin Islamic, Alliance Islamic, AmBank Islamic, MBSB Bank) and 5 foreign (Al Rajhi Malaysia, HSBC Amanah, KFH Malaysia, OCBC Al-Amin, Standard Chartered Saadiq).

Largest Islamic banks in Malaysia by assets and market share

The largest Islamic banks in Malaysia by assets and market share are led by Maybank Islamic (ASEAN’s largest, RM 287 billion+ assets), followed by CIMB Islamic (third-largest commercial bank franchise), RHB Islamic (4th-largest banking group, established 2005), Bank Islam (pioneer 1983), Public Islamic, and Bank Muamalat (1999).

How customers can compare the different Islamic banks available in Malaysia

Customers can compare different Islamic banks available in Malaysia through BNM’s official licensed institutions register at bnm.gov.my, comparison portals like RinggitPlus and iMoney, profit rate tables for deposits and financing, Tawarruq versus Murabaha contract structures, branch network footprint, digital banking app ratings, and Sharia Supervisory Board composition.

Malaysian Islamic banks offering halal mortgages and home financing solutions

Malaysian Islamic banks offering halal mortgages and home financing solutions include Maybank Islamic Commodity Murabahah Home Financing-i, Bank Islam Easy Home-i, CIMB Islamic Property Financing-i, RHB Islamic Mortgage with Diminishing Musharakah, Public Islamic Bank Home Financing-i, AmBank Islamic, Affin Islamic HomePlus-i, and Bank Muamalat Pembiayaan Pemilikan Rumah-i.

Services commonly provided by Islamic banks in Malaysia

Services commonly provided by Islamic banks in Malaysia include savings and current accounts (Wadiah Yad Dhamanah), Murabahah and Tawarruq fixed deposits, personal financing, home financing-i, car financing-i, Islamic credit cards (Tawarruq post-BNM 2025-2026 conversion), Takaful, Sukuk investment, wealth management, and SME business financing-i.

How Malaysian Islamic banks differ in their Sharia-compliant financing products

Malaysian Islamic banks differ in their Sharia-compliant financing products through dominant contract preferences: Maybank Islamic emphasises Commodity Murabahah via Bursa Suq Al-Sila, CIMB Islamic adopts Islamic First Tawarruq, RHB Islamic pioneered Diminishing Musharakah home financing, Bank Islam favours Bai Bithaman Ajil, Bank Muamalat focuses on Tawarruq SME products.

Islamic banks in Malaysia providing digital and online banking services

Islamic banks in Malaysia providing digital and online banking services include Maybank Islamic via Maybank2u app, CIMB Islamic through CIMB Clicks and CIMB OCTO, Bank Islam via GO by Bank Islam, RHB Islamic via RHB Online and RHB Reflex, AmBank Islamic AmOnline, and AEON Bank — Malaysia’s first Islamic digital bank.

Most popular Islamic banks among businesses and entrepreneurs in Malaysia

The most popular Islamic banks among businesses and entrepreneurs in Malaysia are Maybank Islamic for ASEAN cross-border banking, CIMB Islamic for SME and regional trade, Bank Islam for Bumiputera-focused enterprises, RHB Islamic for corporate Sukuk and structured finance, Bank Muamalat for halal-vertical SMEs, and Public Islamic for retail SME financing.

How international Islamic banks operate within the Malaysian banking market

International Islamic banks operate within the Malaysian banking market through five BNM-licensed locally-incorporated subsidiaries: Al Rajhi Malaysia (Saudi parent), HSBC Amanah (UK group), Kuwait Finance House Malaysia, OCBC Al-Amin (Singapore parent), and Standard Chartered Saadiq, serving cross-border trade finance, treasury, multinationals, and high-net-worth Islamic banking clients.

Islamic banks in Malaysia offering Takaful and halal investment products

Islamic banks in Malaysia offering Takaful and halal investment products include Maybank Islamic via Etiqa Takaful, CIMB Islamic with Sun Life Malaysia Takaful, RHB Islamic via RHB Takaful (Takaful myLife Enriched), Public Islamic via Public Mutual Islamic Funds, Bank Islam via Syarikat Takaful Malaysia, and AmBank Islamic via AmMetLife Takaful.

How foreigners and expatriates can open accounts with Islamic banks in Malaysia

Foreigners and expatriates can open accounts with Islamic banks in Malaysia by presenting valid passport, Malaysian employment pass or MM2H residency visa, proof of local address, and minimum deposit (typically RM 1,000–3,000); Maybank Islamic, CIMB Islamic, HSBC Amanah, and Standard Chartered Saadiq accept non-residents under enhanced KYC review.

What customers should evaluate before choosing an Islamic bank in Malaysia

Customers should evaluate before choosing an Islamic bank in Malaysia profit rate competitiveness, branch and ATM network density (Maybank 354+, CIMB 217+, Public Bank 256+), digital banking app stability, PIDM TIPS coverage status, Sharia Supervisory Board credentials, AAOIFI versus SAC-BNM compliance approach, and customer-service reputation.

Banks and institutions on the Malaysian list of Islamic banks

Bank Negara Malaysia officially licenses 16 fully-fledged Islamic banks under the Islamic Financial Services Act 2013, comprising 11 domestic and 5 foreign institutions, supervised by BNM’s Shariah Advisory Council; the list also includes AEON Bank as the country’s first digital Islamic bank licensed in 2024.

1. Maybank Islamic Berhad — ASEAN’s largest Islamic bank; BNM-licensed; Commodity Murabahah-led financing; Maybank Group flagship; serves retail, SME, corporate via Maybank2u digital channel and 354+ branch network nationwide.
2. Bank Islam Malaysia Berhad — Malaysia’s first Islamic bank since 1983; BNM-licensed pioneer; offers Easy Home-i, Personal Financing-i, Business Financing-i; GO by Bank Islam digital app; PIDM TIPS-protected.
3. Bank Muamalat Malaysia Berhad — Malaysia’s second fully-fledged Islamic bank since 1999; BNM-licensed; Tawarruq-based financing including i-Kawan and Pembiayaan Pemilikan Rumah-i mortgage; DRB-HICOM and Khazanah Nasional shareholders.
4. CIMB Islamic Bank Berhad — ASEAN regional Islamic banking franchise; BNM-licensed; “Islamic First” strategy; Sukuk, transaction banking, asset management, and banca-takaful; CIMB Clicks and CIMB OCTO digital platforms.
5. RHB Islamic Bank Berhad — RHB Group’s Islamic franchise since 2005; BNM-licensed; first to offer Diminishing Musyarakah Equity Home Financing facility; Islamic e-FSC supply chain; serves retail, SME, corporate.
6. AmBank Islamic Berhad — Sharia-compliant subsidiary of AmBank Group; BNM-licensed; Tawarruq-converted credit cards from December 2025; AmOnline digital banking; retail, SME, corporate, wealth management.
7. Public Islamic Bank Berhad — Public Bank Group’s Islamic banking subsidiary; BNM-licensed; conservative balance sheet, strong retail consumer financing; Public Islamic Bank Home Financing-i; pbebank.com.my web portal.
8. Hong Leong Islamic Bank Berhad — Hong Leong Financial Group’s Islamic subsidiary; BNM-licensed; offers comprehensive retail and corporate Islamic banking; HLB Connect digital channel; serves Malaysia and Singapore cross-border.
9. Affin Islamic Bank Berhad — Affin Bank Group’s Islamic banking franchise; BNM-licensed; Tawarruq, Murabahah, and Bai Bithaman Ajil-based products; HomePlus-i mortgage; AffinAlways digital platform.
10. Alliance Islamic Bank Berhad — Alliance Bank Malaysia’s Islamic banking subsidiary; BNM-licensed; focus on SME and entrepreneurial financing; Alliance Online digital platform; community-banking positioning.
11. MBSB Bank Berhad — Formed 2018 from merger of Malaysia Building Society and Asian Finance Bank; BNM-licensed; full-fledged Islamic bank; mbsbbank.com retail platform; personal financing, mortgages, SME.
12. Al Rajhi Banking & Investment Corporation (Malaysia) Berhad — Saudi Al Rajhi Bank’s Malaysian subsidiary since 2006; BNM-licensed; foreign Islamic bank; cross-border GCC-ASEAN trade finance and treasury; al-rajhi-bank.com.my Malaysia portal.
13. HSBC Amanah Malaysia Berhad — HSBC Group’s standalone Islamic bank in Malaysia since 2008; BNM-licensed; international Sukuk arrangement, global trade Islamic finance, and wealth management; hsbcamanah.com.my Malaysia portal.
14. Kuwait Finance House (Malaysia) Berhad — KFH Group’s Malaysian subsidiary since 2005; BNM-licensed; foreign Islamic bank; international Sukuk, GCC corridor trade finance; kfh.com.my Malaysia portal.
15. OCBC Al-Amin Bank Berhad — OCBC Singapore’s Malaysian Islamic banking subsidiary since 2008; BNM-licensed; foreign Islamic bank; retail and corporate Sharia-compliant banking; ocbc.com.my Al-Amin platform.
16. Standard Chartered Saadiq Berhad — Standard Chartered Group’s Malaysian Islamic bank; BNM-licensed; global Islamic finance corridor with Middle East and Africa; sc.com/my/saadiq Malaysia portal.
17. AEON Bank (M) Berhad — Malaysia’s first Islamic digital bank; BNM digital licence 2024; subsidiary of AEON Financial Service Japan and Money Lion; mobile-first banking aimed at underserved segments; aeonbank.com.my platform.

Malaysian Islamic banks most active in Sukuk and global Islamic finance markets

Malaysian Islamic banks most active in Sukuk and global Islamic finance markets are CIMB Islamic (regional ASEAN Sukuk arranger), Maybank Islamic (Maybank Investment Bank arm), RHB Islamic (Joint Lead Manager for Islamic Development Bank USD 1 billion Sukuk and EXIM Bank USD 90 million Sukuk), HSBC Amanah (cross-border international Sukuk), and Standard Chartered Saadiq.

How the list of Islamic banks in Malaysia has evolved over the years

The list of Islamic banks in Malaysia has evolved from PWSBH pilgrim savings (1963), Lembaga Tabung Haji (1969), Bank Islam (1983 first), Bank Muamalat (1999 second), Islamic Banking Scheme expansion (1993), to 16 fully-fledged Islamic banks today, plus AEON Bank as Malaysia’s first Islamic digital bank licensed 2024.

Why Malaysia is considered one of the world’s leading centers for Islamic banking

Malaysia is considered one of the world’s leading centers for Islamic banking because BNM-supervised Islamic banks command 25% domestic market share and 10%+ of global Islamic banking assets, INCEIF provides the world’s only postgraduate Islamic finance university, IFSB headquarters sit in Kuala Lumpur, and Malaysia is the world’s largest Sukuk issuer.