Indonesia’s Financial Services Authority (OJK) has prepared a new strategy for its Islamic Capital Market Roadmap for 2020-24, following the satisfactory implementation of its previous roadmap spanning 2015-19, according to local media reports.  Hoesen, Executive Head of the Capital Market at OJK, said that although the Islamic capital market sector in Indonesia had a relatively minor market share, it continued to grow at an acceptable rate each year. Hoesen added that innovation and rapid adaptation were impera...

Bank Negara Malaysia (BNM) reported that the country’s Gross Domestic Product (GDP) had contracted by 17.1% year-on-year (YoY) in the second quarter of 2020 (2Q 2020) due to the Movement Control Order (MCO) instated by the Government of Malaysia to control the COVID-19 pandemic. The contraction is the lowest on record since the Asian Financial Crisis of 1998 which saw a contraction of 11.2% YoY in its fourth quarter, said the Chief Statistician of Malaysia, Datuk Seri Dr Mohd Uzir Mahidin.  The country recorded a GDP growth of...

Moody’s Investors Service (Moody’s) anticipates Indonesia’s Sukuk issuance to rise to USD 27 billion in 2020, from USD 16 billion last year, as the Government of Indonesia searches for more funding to combat the COVID-19 pandemic.  According to Thaddeus Best, Lead Analyst of Moody’s Sovereign Risk Group, who was speaking at a recent webinar on global Islamic finance and Sukuk, the country’s Sukuk issuance is expected to increase by around 68.75% year-on-year (YoY), as the Government revealed an IDR 695.2 trillion (USD 47.3 bill...

With a Stable Outlook on all ratings, Malaysian Rating Corporation (MARC) has affirmed the ratings on WCT Holdings’ (WCT) MYR 1.5 billion Sukuk Murabahah Programme at AA-IS, and WCT’s MYR 1.0 billion Perpetual Sukuk Musharakah Programme at AIS. MARC also affirmed the rating on WCT’s MYR 1.0 billion Medium Term Notes (MTN) Programme at AA-.  The ratings affirmation reflect WCT’s solid and fairly diversified construction order book providing earnings visibility, as well as WCT’s healthy liquidity position...

Axiata Group (Axiata) has secured the lowest 30-year coupon for an Asian corporate after its landmark USD 1.5 billion dual-tranche issuances were oversubscribed. The offerings, which comprise of a 10-year USD 500 million Sukuk and a 30-year USD 1 billion conventional notes, will be issued via its wholly-owned special purpose vehicles Axiata SPV2 and Axiata SPV5 (Labuan) Limited, respectively.  According to local media reports, the final orderbook for the issuances were USD 6.8 billion, with participation from 245 accounts from significant financial markets, making it...

Malaysia Rating Corporation (MARC) has affirmed its AA-IS rating on Grand Sepadu’s MYR 210.0 million Sukuk Murabahah, while revising the rating outlook to Stable from Negative. According to MARC, the revised outlook took into consideration the sizeable decline of uncertainties pertaining to Grand Sepadu’s collection of toll compensation from the Government of Malaysia since 2018. Compensation for 2018 had been received last year, while half of 2019’s compensation was received so far, with collections back to their regular cycle.  The AA-IS ra...

Malaysia Steel Work (Masteel)’s MYR 130 million Sukuk Ijarah Programme has had its AAAIS rating affirmed by Malaysian Rating Corporation (MARC), with a Stable Outlook. This rating affirmation is reflective of the credit strength of Danajamin Nasional (Danajamin), providing an irrevocable and unconditional financial guarantee insurance on the Sukuk Ijarah Programme. Danajamin carries an insurer financial strength rating AAA/Stable, as well as a long-term counterparty credit rating of AAA/stable from MARC.  Masteel’s standalone cr...

RAM Ratings (RAM) projects Malaysia’s economy to contract by 4% in 2020, exceeding its initial projection of a decline of 2.4%, as the country faces one of its worst recessions. According to a statement released on the 13th of August, 2020, the ratings agency’s projection is based on reduced demand of the industrial and labour market following restrictions of the movement control order that has negatively impacted businesses and households.  RAM noted that although essential industries were operating at sustained normal levels, export-oriented sectors showed dismal...

Citibank Indonesia Chief Economist, Helmi Arman, stated that Indonesia’s economy could go back to pre-coronavirus levels by 2021, with Citibank Indonesia (Citibank) forecasting gross domestic product (GDP) to come in at between 5.5% and 6% year-over-year (YoY) next year. Speaking at a press briefing, Helmi added that the recovery is expected to be driven by recovering household spending as well as higher government spending, following the normalization of economic activity. Helmi noted that the Indonesian economy is anticipated to operate at 70% capacity in the third quarter...

Minister in the Prime Minister’s Department (Economy), Datuk Seri Mustapa Mohamed, announced the Government of Malaysia’s plans to launch the Digital Economy Masterplan in October 2020, following its approval. This Masterplan is an initiative to expand all sectors of the economy, including the non-manufacturing sector. Speaking at the launch of the “Menjana Ekonomi Digital @ Pasarman.com” in Kuala Lumpur on the 13th of August 2020, Mustapa stated that whilst the Ministry of Trade and Industry (MITI) had introduced the Industry 4WRD initia...