KUALA LUMPUR: Malaysia's corporate sukuk issuance is expected to grow by 15% to 20% to RM90bil this year, supported by strong demand for sukuk on the back of uncertainties in the market.

Association of Islamic Banking Institutions Malaysia (Aibim) president Datuk Mohd Redza Shah Abdul Wahid (pic) said as of June 2012, Malaysia's corporate sukuk stood at RM64bil.

“We expect this year's growth to be faster than that of last year, in tandem with Bursa Malaysia's strong performance so far as we had the second and third largest initial public offerings (IPOs) this year,” he told reporters after the launch of the Bloomberg Aibim Bursa Corporate Sukuk Index here yesterday.

He said Malaysia so far had been proactive in terms of being very serious and aggressive in pushing the initiative to develop the Islamic capital market.

The seriousness of the regulators and market participants had actually contributed to the growth of sukuk in the Malaysian market, he added.

Redza said Malaysia continued to be the world's biggest market for sukuk with 65% market share.

According to a report from Standard & Poor's Rating Service (S&P), Malaysia is now the world's leader in sukuk issuance. “Political will, recognition of beneficial ownership, tax incentives and rising investors base have all supported the country's continued growth trajectory,” S&P credit analyst Allan Redimerio said in a report earlier this month.

S&P further said Abu Dhabi National Energy and Bahrain-based Gulf Investment Group were the first to issue sukuk in ringgit. “The ringgit is attractive because of Malaysia's established regulatory framework for Islamic finance and the wide pool of investor action in this market.”

At the event yesterday, Bloomberg launched a ringgit corporate sukuk index, developed with the Aibim and Bursa Malaysia.

The Bloomberg Aibim Bursa Malaysia Corporate Index would serve as a benchmark for investors of ringgit-denominated Islamic bonds in Malaysia.

The index will track and measure the performance of the most liquid and credit-worthy Islamic corporate bonds in Malaysia.

CIMB Malaysia head of Islamic treasury Datuk Mohamad Zabidi Ahmad said that by providing accurate pricing and benchmarking, this index would improve portfolio management and contribute to a more robust bond market.

The index was a step in the right direction towards achieving Malaysia's goal of expanding the global Islamic capital market and making Malaysia the hub for Islamic market globally, he added.

Last year, Bloomberg launched the Aibim Bursa Malaysia Sovereign Index and the Malaysia Sukuk Ex-MYR Index as part of its Islamic Finance Platform, a broad set of data, analytics and news dedicated to syariah-compliant products and services. - Bernama

• 
• 
• 

More News Business Headlines      Malaysia tycoon Vincent Tan plans IPO of football club Cardiff City      Google, like Facebook, in talks to buy Waze for about US$1bil      Crown selling entire 10% in rival Echo, partly owned by Genting(Update)      First edition of 'Great Gatsby' to be sold at auction, can fetch US$150,000      Malaysia leads the way in Basel III debt      Markets face rough summer ride as Fed pullback feared      Wall Street sags, HP hits 52-week high      Commodities trader sues BP, Shell others for alleged oil price fixing      Billionaire Icahn seeks up to US$7bil for Dell bid      Google faces new federal antitrust probe      Goldman Sachs unveils checks on conflicts in bid to fix tarnished image      Air Asia's Tony Fernandes to ‘fire up’ investors      Maybank bullish on growth, to expand regionally under new leadership      Khazanah appoints Nor Mohamed deputy chairman      Lafarge Malayan Cement to finalise next expansion plans by August      Daibochi expanding exports to S-E Asia and Australia      TDM to expand plantation and hospital ops      FBM KLCI declines on selling pressure in key regional markets      UMW Rig Asset acquires new jack-up drilling rig             ECM Libra aims to exit PN17 soon      RAM reaffirms rating on Tanjung Bin sukuk      RM705mil vessel job for Perdana Petroleum      UOA REIT bullish on assets      China Railway Corp sells US$3.26bil of debt      IHH first-quarter profit improves on higher revenue      YTL posts lower earnings for Q3, but nine-month profit rises 10.6%      MISC turns around in Q1      Petronas Dagangan quarterly earnings down 3.7%      MRCB first-quarter net profit falls on lower revenue      Daiman Q3 profit doubles to RM31mil      Lower profit for Unico-Desa, hit by depressed CPO prices      KUB in JV with Singapore firm on multi-billion ringgit Petronas Rapid Tank Project      Danajamin names non-exec director      Axiata declines to confirm or deny that it is bidding for Indonesian telco      Singapore GDP growth surprises, beats economists’ forecast of contraction      US stimulus pullback hinges on traction signs, decision could come at one of ‘next few meetings’      IMF chief in court for French arbitration case      Firm settles US SEC charges over data breach      Australia's Crown sells $255mil stake in rival Echo      Draghi says euro zone more stable, "needs a more European UK"      Sears losses mount, weighs sale of unit to shore up liquidity      Former Goldman banker settles SEC 'pay-to-play' charges      What does Lockheed's F-35 fighter jet really cost?      NYSE says AEP, NextEra trades stand after crash at open      Procter & Gamble brings back former CEO to fix company      Canadian businessman goes on trial in Cuba for corruption  Go

• Rafizi: PKR filing election petition for Balik Pulau parliamentary seat
• Karpal calls for state-level Senate elections
• Copies of Opposition tabloids seized for violating permit
• Rally organisers told to adhere to Act or face the music
• Three held over May 13 statements
• Umno leaders back police action against those who utter seditious remarks
• KL car number plates to bear ‘W1A’
• Thousands throng thanksgiving rally by DAP
• Set aside differences, Malaysians told
• Fernandes does his first firing in Apprentice Asia
• Adam pleads not guilty to giving seditious speech
• Large migrant population a security risk to Sabah, RCI told
• Arrest of Opposition figures not political, say cops
• Pakatan uncowed by seizure of party organs
• NUJ slams attacks on journalists covering vigils

• Strong quake strikes off Tonga
• Jury fails to decide on US murderer death sentence
• One killed in Brazil giant fuel depot blaze

• Kingston leads, McIlroy in Wentworth woe
• LPGA plans 12-hole rounds in water-logged Bahamas
• Ryan Palmer sizzles with 62 to seize lead at Colonial
• Kelly overcomes scare to clinch title in KLGCC
• Time to make amends Garcia wants to meet Woods to defuse racist row
• American Johnson back to defend Colonial crown
• Rain dampens debut of LPGA Bahamas event
• Tianlang adds another US event to schedule
• Clock ticking for next golden generation
• Nadal wants to create history at Roland Garros
• Serena out to tame French Open demons
• Zheng Jie stuns Wozniacki in Brussels
• British Open: Ramy Ashour racks up 38th successive win
• Nicol David sails into quarter-finals of British Open in 35 minutes
• BAM must stop rewarding mediocrity or be doomed

• Please wait.

• Singapore GDP growth surprises, beats economists’ forecast of contraction
• Air Asia's Tony Fernandes to ‘fire up’ investors
• Malaysia leads the way in Basel III debt
• Lower profit for Unico-Desa, hit by depressed CPO prices
• TDM to expand plantation and hospital ops
• Lafarge Malayan Cement to finalise next expansion plans by August
• Daibochi expanding exports to S-E Asia and Australia
• Google faces new federal antitrust probe
• Danajamin names non-exec director
• Canadian businessman goes on trial in Cuba for corruption

Copyright © 1995-2013 Star Publications (M) Bhd (Co No 10894-D) - Investor Relations