How to Find Halal Stock Investment in Singapore

Halal Investment in Singapore is one of the developing points in the country. Despite it is a non-Muslim majority country, Singapore has been one of the top countries for Islamic banking. Many banks in Singapore provide both Islamic and conventional services to their customers. However, many Singaporeans may be unfamiliar with the concept of Islamic banking.


How Islamic banks make money?

Islamic banks use equity participation methods, which are comparable to profit sharing, to earn money instead of charging interest. If an Islamic bank lends money to a company, the company will repay the loan without interest and instead offer the bank a percentage of the company’s profits. The bank does not benefit if the business defaults or does not make a profit. Imagine, for example, a traditional (non-Islamic) mortgage, which is when you borrow money from a bank to pay for your home. You will then make regular instalments to repay the loan, plus interest, as per the mortgage terms. If you have an Islamic mortgage, the bank will first buy your home and then sell it to you at a higher price which both sides have agreed to. Instead of charging direct interest on the loan, the bank generates a profit based on trading in this situation.

Halal investments vs Traditional investments

Aside from the prohibition on earning interest (riba), halal investments have two further distinguishing characteristics:

Investments in businesses or activities that violate Islamic law are not permissible. This excludes obvious examples, such as pornography, gambling, alcohol, and pork, but it also includes tobacco and arms.

Investing based on the principles of uncertainty and gambling is not acceptable. Certain sorts of investments, such as options and futures, are not acceptable. Surprisingly, many types of insurance are not in accordance with Shariah, although Muslims can use a takaful to obtain similar advantages.

Conventional investments may include unethical sources of revenue or returns. In addition, there are no restrictions on trades or business activities which is not Shariah-compliant.

Guide on Finding Halal Investment in Singapore

  • Use a shariah-compliant robo advisor or investing platform

A stock index (such as the Straits Times Index) records the performance of an underlying selection of stocks chosen to reflect a corresponding sector or market. The Straits Times Index (STI), for example, tracks the top 30 companies listed on the Singapore Stock Exchange.

Similarly, there are indexes that only track shariah-compliant companies and shares, making them a useful resource for finding halal investments with a track record of excellent performance. As a Muslim investor, you can be curious if the stock you want is ethical in nature or not. Indeed, you can utilize Musaffa’s halal stock screener app to check it. 

Musaffa is Islamic trading, investment, and financial education platform. The platform aims to attract investors seeking to align their money with their values and faith. Not only does our platform let investors trade Shariah-compliant securities, but it will also serve as an Islamic Finance education platform where investors can learn more about investment fundamentals and how to invest in Shariah-compliant assets, including stocks and ETFs.

Additionally, we conduct intense financial and operational screening of all securities under coverage to filter out non-Shariah compliant securities. You get results based on five widely accepted Islamic investment methodologies adopted by DowJones, FTSE, Standard & Poors, MSCI, and AAOIFI.

Currently, our platform hosts over 9,000 stocks and ETFs for the U.S, Malaysian, and Indonesian markets. Surely, we will cover more stocks from different countries. 

To read more about Islamic Finance related topics, please click here and visit our academy.

Besides, feel free to sign up for our free stock screening services at