Bursa Shariah Compliance Screener

Analyze a company's financial ratios against the Securities Commission (SC) Malaysia's quantitative Shariah screening methodology.

Shariah Compliance Mechanics

1. The 5% Benchmark

This strictest benchmark applies to clearly prohibited activities like conventional banking, conventional insurance, gambling, liquor, and pork-related activities. Revenue from these sources must be less than 5% of total revenue.

2. Islamic Finance Exclusion

Islamic debt (Sukuk) and Islamic cash placements (Mudharabah/Wadiah) are excluded from the 33% debt/cash calculation, as they are already Shariah-compliant. Only conventional, interest-based instruments are penalized.

Key Benefits

Pre-Emptive Analysis: Use this tool when analyzing latest quarterly reports to predict if a currently compliant stock might be dropped from the Shariah list in the next SC review, allowing you to exit early.

Frequently Asked Questions

Get answers to common questions about using our professional trading tools.

The SC Malaysia uses a two-tier quantitative approach to determine if a stock is Shariah-compliant. It involves business activity benchmarks (where non-permissible income must be below 5% or 20% depending on the activity) and financial ratio benchmarks (debt and cash over total assets must each be below 33%).

💡 Pro Tip:All our tools are 100% free with no signup required.

The 33% threshold is based on the Islamic legal maxim that 'one-third is considered substantial'. Therefore, conventional interest-bearing debt and conventional interest-earning cash must each remain below 33% of the company's total assets.
No. This tool only evaluates the quantitative financial ratios. The Shariah Advisory Council (SAC) of the SC also conducts qualitative screening to assess the company's public image and core business before officially listing it as Shariah-compliant.

Still have questions? We're here to help.

This calculator is part of our advanced library of cryptocurrency calculators. Explore the fullCrypto Trading Toolsto optimize your strategy and manage risk like a professional.

Recommended Financial Reading & Resources

Expand your market intelligence and master risk management with our top recommended professional trading literature.

Explore by Market