The rise of the Islamic capital market in the emerging economy of Malaysia over the past few decades motivates us to investigate the impact of the Syariah compliant status on the level of exchange rate exposure. The Syariah compliant status implies that a company should use a minimal level of debt as capital to finance its operations. Given this, it is hypothesized that Syariah compliant firms should exhibit lower levels of exchange rate exposure than their counterparts, supported by the strong theoretical connection between interest rate and exchange rate. In terms of specification, previous efforts in pricing exchange risk failed to capture the true size of exposure due to the use of single time domain in traditional model. To cater the bias in estimation, this study intends to calculate multi-horizon exchange rate exposure based on maximal overlap discrete wavelet transformation to decompose single series into multiple time domains. The financial risk analysis involves 30 listed non-financial individual stocks in Malaysia having different Syariah compliant status from November 2013 until May 2018. As a result, the study finds no significant difference in currency exposure between Syariah compliant and non-Syariah compliant stocks. Secondly, it is found that the extent of currency exposure and the percentage of exposed firms exhibit non-homogenous trend across different time scales where large amount of exposure is concentrated at higher scale. From policy implications, the study suggests that Syariah compliant firms and non-Syariah compliant firms share the same exchange risk profile where exchange risk management routine is expected to be identical for both groups. Besides, the enhanced level of exposure at higher scale requires vigorous financial risk hedging strategies especially within widened investment interval.

Financial development is essential in influencing a country's economic environment. ASEAN countries exhibit varying degrees of financial sector maturity, ranging from highly developed to less develop. Nevertheless, its banking sectors are relatively well-developed. The article aims to examine the impact of financial development on economic growth and income inequality in five ASEAN countries. The study examines a bank-based financial system using the ratioof domestic credit to the private sector to GDP as a measure of financial development. The study utilises panel data regression analysis spanning from 1990 to 2020. Other economic drivers included in the models as control variables are human capital, labour force growth rate, government expenditure, physical capital, inflation, and trade openness. The findings of this study suggest that financial development in five ASEAN countries has a significant negative relationship with economic growth while positively related to income disparity This study uncovers adverse outcomes on the impact of financial development, highlighting the need for legislative reform to improve the efficiency of the banking sector in delivering financial services to all societal groups.