A Reflection on Generation Riba

Wahed calls for reflection on the economic consequences of interest in society and a move towards a fairer financial system for all.

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We’re proud to launch our latest campaign, Withdraw From Riba.

Interest is often considered a necessary tool for economic growth, but global debt has now reached $315 trillion. Servicing this debt cost the world approximately $13 trillion in 2022.

Malaysia is not immune to the pressures of rising interest costs. As of 2023, Malaysia's household debt-to-GDP ratio stands at 65.4%, making it one of the highest in Asia. The increasing cost of servicing debt puts immense pressure on Malaysians, with 52% of households considered financially vulnerable.

Interest facilitates a wealth transfer from lower and middle-income households to the affluent. In Malaysia, the wealthiest 10% of households control 41% of the country's wealth, while the bottom 50% hold only 18%. This disparity is exacerbated by an interest-based financial system that perpetuates inequality.

As debt levels rise, those with lower incomes are trapped in cycles of repayment, while those with assets continue to accumulate wealth — widening the gap between the "haves" and the "have-nots."

For many, the pressure of mounting debt leads to feelings of hopelessness and isolation. In Malaysia, a study by the Institute for Public Health found that 29% of Malaysians suffer from mental health issues, with debt being a major contributing factor. The emotional burden of debt is not just an individual struggle — it reflects a systemic issue created by interest-based finance, which disproportionately affects those who are already vulnerable.

We believe withdrawing from Riba is not only a religious obligation, it is a vote to make real change in the fabric of our society and a commitment to creating a sustainable economy that is more equitable and just.

Our campaign focuses on bringing these issues to light with the intention of signalling the shift towards a more equitable financial system.

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Intended for Malaysian audience only as part of Wahed’s global campaign.