The Islamic Financial Market Subcommittee (IFMC) convened on 19 October 2026 to discuss the ongoing transition from KLIBOR to MYOR-i, as well as initiatives to strengthen the Islamic financial market ecosystem. 

The industry-led roundtable deliberated on key developments and opportunities towards building a more resilient, liquid and future-ready Islamic financial market. This includes:

• Accelerating product migration and prioritising the early adoption of MYOR-i to support the upcoming transition milestones. As the industry approaches the cessation of KLIBOR usage in new products and transactions by 1 July 2027, efforts should focus on reducing KLIBOR-linked inventories, actively engaging clients, and promoting the wider adoption of MYOR-i-linked products and transactions to ensure a smooth, timely and orderly transition.
• Expanding market participation and liquidity management tools. Industry players are also encouraged to establish the necessary legal and operational frameworks to participate more actively in the Islamic money market as well as derivatives market. Wider adoption of Sell and Buy Back Agreement (SBBA), Collateralised Commodity Murabahah (CCM) and the Tahawwut Master Agreement (TMA) is an important step towards enhancing market depth, diversity and liquidity.

BNM Assistant Governor Mohamad Ali Iqbal Abdul Khalid in his welcoming speech said, ‘The introduction of MYOR-i as the world’s first transaction-based Islamic benchmark rate represents a significant milestone in the development of Malaysia’s Islamic financial market. While recent developments have been encouraging, broader adoption across financial market instruments must be achieved which requires coordinated action across the industry. The success of MYOR-i is not measured upon when its use becomes mandatory but rather by the confidence with which market participants use this benchmark rate in their daily business activities.’

IFMC Co-chairperson Suzaizi Mohd Morshid in his remark said, ‘The recent issuance of Malaysia’s first MYOR-i-referenced sukuk and the execution of the MYOR-i-referenced Islamic profit rate swap by Cagamas represent important steps forward in the development of the MYOR-i ecosystem. We encourage industry players to continue exploring and executing MYOR-i-linked transactions to build market familiarity, enhance liquidity and support wider adoption of the benchmark. Broader participation and continued collaboration across the industry will be critical in ensuring the successful development and long-term sustainability of MYOR-i.’

Islamic Financial Market Subcommittee (IFMC)
28 October 2026

About the Islamic Financial Market Subcommittee (IFMC)

The IFMC is a sub-committee of the Financial Markets Committee (FMC) and comprises representatives from Bank Negara Malaysia (BNM), financial institutions and other institutions with prominent roles or participation in the Islamic financial market.