PNB strengthens Shariah investments with new screening model and collective zakat

Permodalan Nasional Berhad (PNB), a major Malaysian investment institution, has launched an innovative Shariah investment screening model called the Maqasid Al-Syariah Investment Screening Model (MSRI). This new approach integrates the principles of Maqasid al-Syariah, which focus on the higher objectives of Islamic law, with Environmental, Social, and Governance (ESG) factors. The initiative aims to foster an investment ecosystem that is not only financially stable but also ethically sound.

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This strategic cooperation is a clear testament that national investment institutions and religious institutions can join hands in developing an economy that is not only financially sustainable but also strong in values and ethics.

The MSRI was developed through close collaboration between PNB and the Department of Islamic Development Malaysia (Jakim). PNB Group Chairman Tan Sri Raja Arshad Raja Tun Uda stated that this strategic partnership demonstrates the capability of national investment and religious institutions to work together. "This strategic cooperation is a clear testament that national investment institutions and religious institutions can join hands in developing an economy that is not only financially sustainable but also strong in values and ethics," he said during the launch event.

The MSRI will be applied to PNB's domestic investment portfolio analysis and decision-making processes. It extends Shariah screening beyond traditional financial and business activity assessments. The model evaluates investments based on five dimensions of Maqasid al-Syariah, as introduced by Imam al-Ghazali, and comprehensively incorporates ESG elements. It also considers controversy and bonus scores to assess current issues, reflecting both negative impacts and positive efforts by companies.

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Muslim investors in ASNB unit trusts are advised to fully utilize this collective zakat payment method to fulfill their annual zakat obligations.

In conjunction with the MSRI launch, Amanah Saham Nasional Berhad (ASNB), PNB's unit trust management company, introduced a collective (khultah) zakat payment method for its Shariah-compliant unit trusts. This facility simplifies the annual zakat obligation for Muslim investors in ASNB's fixed-price unit trusts. Dr. Zulkifli Hasan, Minister in the Prime Minister's Department (Religious Affairs), who officiated the launch, encouraged Muslim investors to utilize this convenient method for managing their zakat obligations systematically and efficiently.

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I support the implementation of collective zakat because, from the investor's perspective, the benefits are very practical and in line with Shariah rulings.