Impact of the Securities Commission’s Shariah‑Compliance Review on Foodie Media Berhad

Foodie Media Berhad (KL:FOODIE) was removed from the Securities Commission Malaysia’s (SC) list of shariah‑compliant securities on 29 May 2026. The decision follows a semi‑annual review of audited financial statements for listed companies. The removal was announced alongside the exclusion of 17 other stocks and the addition of 44 new names to the compliant list.

Background of the Review

  • The SC reviews the audited financial statements of Bursa Malaysia‑listed companies released between 1 October 2025 and 31 March 2026.
  • The review assesses whether a company’s activities and financial structure align with Islamic investment principles.
  • Companies engaged in activities considered haram, such as gambling or alcohol, or those that take on excessive interest‑based debt, are deemed non‑compliant.
  • The list is updated twice a year, on the last Friday of May and November.

Reasons for Exclusion (as implied by SC guidance)

Although the SC did not publish a detailed explanation for each excluded stock, the general criteria indicate that Foodie Media Berhad may have been flagged due to:

  1. Business Activities – As a digital media publishing company, its operations might be judged to involve elements that conflict with shariah principles (e.g., content that could be deemed inappropriate or the use of advertising revenue structures that involve interest‑based financing).
  2. Financial Structure – Excessive reliance on interest‑based debt or non‑shariah‑aligned financing could also trigger exclusion.

Market Reaction

  • Institutional Investors – Investors following Islamic investment guidelines typically sell off non‑compliant holdings, potentially leading to a sell‑down in the share price.
  • Share Price Impact – As of 27 May 2026, the closing price of Foodie Media Berhad was MYR 0.32, with a 52‑week low of MYR 0.295 and a 52‑week high of MYR 0.57. The removal may contribute to further downward pressure on the stock.
  • Market Capitalisation – At MYR 284,160,000, Foodie Media Berhad’s market cap is modest compared to larger peers, making it more susceptible to volatility from investor sentiment shifts.

Broader Context

  • Other Exclusions – The same review also excluded Globetronics Technology Bhd (KL:GTRONIC) and Semico Capital Bhd (KL:SEMICO).
  • Additions – The list now contains 886 shariah‑compliant securities, including SkyeChip Bhd (KL:SKYECHIP) and Empire Premium Food Bhd (KL:EMPIRE).
  • Investor Implications – The SC’s semi‑annual updates provide institutional investors with a clear framework for maintaining shariah compliance in their portfolios.

Outlook for Foodie Media Berhad

The removal from the shariah‑compliant list underscores the importance of aligning corporate activities and financial structures with Islamic principles for investors who prioritize such criteria. Foodie Media Berhad will need to assess its business model and financing arrangements to address any compliance gaps if it wishes to regain a favorable standing among shariah‑conscious investors.