KUALA LUMPUR, May 26 — On the eve of the Asean-GCC Summit, Malaysia has signalled its ambition to become the world’s Islamic crypto capital, with a strategic investment in Dubai-based Islamic digital bank Fasset in the works.

Kumpulan Wang Persaraan (Diperbadankan) [KWAP], Malaysia’s largest public sector pension fund, is in advanced talks to invest between US$12 million and US$15 million in Fasset.

The collaboration aims to place Malaysia at the forefront of ethical digital finance and frontier technology.

Fasset, the world’s first Islamic digital bank powered by blockchain and AI, is expected to relocate its Asia-Pacific headquarters to Kuala Lumpur as part of the proposed partnership.

The firm also plans to establish a Centre of Excellence for Islamic digital assets in the Malaysian capital, to boost the country’s ambitions to lead in Shariah-compliant blockchain, tokenisation, and inclusive financial infrastructure.

The investment underscores growing institutional interest in high-impact, Shariah-aligned innovation platforms with regional potential.

It aligns with KWAP’s strategy to explore private capital markets, particularly in digital finance and Islamic-compliant investments.

“This collaboration aligns with KWAP’s strategy to support the development of cutting-edge and emerging technologies, while leveraging Malaysia’s solid position as a global Islamic finance hub,” said Hazman Hilmi Sallahuddin, Chief Investment Officer of KWAP.

Fasset CEO and co-founder Mohammad Raafi Hossain said the partnership with KWAP reflects a shared long-term vision for ethical and inclusive finance.

“Together with KWAP, we are building more than just infrastructure — we are building trust, opportunity, and a stronger financial system for the world,” he said.

Malaysia’s move comes as the country intensifies its push to lead in Islamic fintech and digital infrastructure.

Prime Minister Datuk Seri Anwar Ibrahim recently pledged RM100 million towards Islamic finance innovation under the Halal Industry Master Plan 2030, underscoring the government’s commitment to digital transformation and Shariah-compliant financial leadership.

The collaboration also supports the broader national agenda to attract global technology firms with transformative visions, positioning Malaysia as a hub for sustainable digital finance across the Asean region.