Based on industry feedback in the midst of the pandemic, the  Securities Commission Malaysia has stated that it expects up to MYR 100 billion in total corporate bond and Sukuk issuances for 2020, majority of which is expected to be Sukuk (based on Sukuk issuances having accounted for an average of 70% of corporate issuances over the past three years).  Analysis from iFAST Capital in Malaysia indicates that total Sukuk issuances in Malaysia for the first seven months of 2020 (ending 31st of July 2020) amounted to MYR 34 billion, down 53% year-over-year...

Malaysia’s International Trade and Industry Minister, Datuk Seri Mohamed Azmin Ali, has stated that whilst Malaysia is on its way to a recovery amidst the COVID-19 pandemic, Small and Medium Enterprises (SMEs) are crucial to staying on this track, and hence require more support if Malaysia hopes to record positive economic growth in 2021.  According to Azmin Ali, the Ministry of International Trade and Industry, together with Malaysia External Trade Development Corporation, SIRIM (formerly known as the Standard and Industrial Research Instit...

Effective the 8th of August 2020, the Central Bank of the United Arab Emirates (CBUAE) announced the temporarily relaxation of the net stable funding ratio (NSFR) the advances-to-stable resources ratio (ASRR) for both local and foreign banks. The purpose of this move is to provide banks with enhanced flexibility, the ability to support the economy and manage their respective balance sheets better.  The NSFR measures the ratio between the amount of stable funding available and the amount of stable funding required, whilst the ASRR measures loans and advances as a...

DRB-HICOM’s A+IS rating on its Sukuk Programme of up to MYR 3.5 billion, as well as the A-IS on the Perpetual Sukuk Musharakah Programme (Perpetual Sukuk) of up to MYR 2.0 billion, have been affirmed by the Malaysian Rating Corporation (MARC). MARC has also revised the ratings Outlook to Stable from Positive. The ratings affirmation is backed by DRB-HICOM’s ability to better tackle the impacts of COVID-19, given its diverse business segments, whilst its sound liquidity position is anticipated to support its short-term financi...

In an interview with local media, Chief Executive Officer of Meezan Bank, Irfan Siddiqui, discussed the positive impacts of Sukuk issuances within Pakistan’s financial markets framework. According to Siddiqui, unlike conventional bonds, Sukuk could help to diversify investment portfolios, whilst simultaneously serving as an effective instrument to reduce risk. According to Siddiqui, Pakistan’s Islamic finance market has gained acceptance over the past two years, particularly following the issuances of the Pakistan Energy Sukuk (PES) an...

Acknowledging the technical, legal and personnel problems facing the Bank of Uganda (BoU), Matia Kasaija, the Ugandan Finance Minister has urged the relevant personnel within the BoU to work around the clock to finalise the establishment of Islamic banking in the country.  According to Kasaija, the Government of Uganda had played its part by way of passing the law and it was now up to the BoU to take matters forward with regards to the effective implementation of an Islamic banking system. The Finance Minister also highlighte...

Over fifty global halal certificate agencies use Indonesian Halal standards, and hence request recognition from Indonesia, according to Indonesian Vice President, Ma’ruf Amin. Whilst the Government of Indonesia builds on its effort to strengthen various sectors, including the Halal industry, Indonesia has made its mark as a global standard for Halal certification. However, the Government has stated that these advancements only pertain to Halal certification, whilst Indonesia lags far behind with regards to Halal products.  According to Ma’ruf ...

With the unemployment rate declining 0.4% in June 2020, to 4.9%, from a record-high of 5.3% in May 2020, Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz, expressed optimism over Malaysia’s economic rebound in 2021.  For June 2020, the Finance Minister compared Malaysia’s unemployment numbers against those of the Philippines (17.7%), India (11%), the United States of America (11.1%), and China (5.7%), adding that most European nations had recorded unemployment rates in the double-digits. With Malaysia’s unemployment rate declini...

Speaking at the Indonesia Shariah Economic Festival (ISEF) held virtually on the 7th of August 2020, Bank Indonesia (BI) Governor, Perry Warjiyo stated that BI is focusing on the development of Indonesia’s digital Shariah-compliant economy. Warjiyo noted that the Islamic finance industry is set to be the key driver of Indonesia’ economic recovery. According to Warjiyo, the ISEF will serve as a platform to expedite the empowerment of the Shariah economy in order to bu...

According to Indonesian Vice President Ma'ruf Amin, the Government of Indonesia is considering the merger of several public Islamic banks in the country, with the aim of creating a sizeable Islamic bank that would rank within the top 20 globally. Ma’ruf noted that at present, Indonesia lacks a large Islamic bank, capable of supporting the country’s domestic and foreign interest. Ma’ruf also noted that such a merger would provide a boost to the domestic economy and was anticipated to fuel economic recovery.  Accor...