Starting today, May 29, 2026, social media marketing company Foodie Media Bhd and manufacturing firm Globetronics Technology Bhd will no longer hold Shariah-compliant status.
Also listed is Semico Capital Bhd, and several other listed companies have lost their eligibility to be in an investment portfolio based on Islamic principles.
Despite the removal, a total of 44 new companies have been recognized as Shariah-compliant, including chip design firm SkyeChip Bhd. The inclusion of names such as VisDynamics Holdings and Wasco Greenergy now opens the door for investors who want to explore the technology and green energy sectors.
When a stock is classified as non-Shariah-compliant, it usually triggers a massive wave of selling by institutional funds subject to Islamic mandates.
These giant capitals will begin to shift their direction to find new alternatives, thus putting price pressure on the counters that have been removed.
A stock can lose its ‘shariah compliance’ status if there are sources of income from prohibited activities or the level of interest-based debt increases beyond the permitted limit.
Now, the Shariah Advisory Council has set stricter rules where the contribution of non-compliant activities must be less than five percent in total.
In addition to business activities, the ratio of usury-based loans and cash deposits in conventional instruments must be below 33 percent of total assets.
If a company takes on too much conventional loans, their Shariah status can be revoked in a periodic review conducted every six months.
If your shares have been liquidated, the guidelines allow you to hold onto the shares until the original capital is recovered if the price is falling.
However, if the price has exceeded the cost of investment, you must immediately dispose of them and channel the profit funds to an approved charity after the effective date of the tar
