With a total payment of MYR 14.3 billion, Malaysia’s Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz, stated that as of the 20th of July 2020, the Prihatin Rakyat Economic Stimulus Package (Prihatin) had achieved 91% of its implementation objectives.  According to Tengku Zafrul, this milestone was achieved through one-off cash grants to students of higher learning institutions, e-hailing and taxi drivers, as well as government retirees, for example. The Finance Minister stated that initiatives requiring implementation over a period of thre...

Saudi Arabia’s Finance Minister, Mohammed Al Jadaan, stated that the Government of Saudi Arabia was looking into all possible options to boost its finances. This includes plans to sell off state-owned assets worth SAR 50 billion over the next five years, via the privatisation of assets in the fields of education, health-care and water.  Al Jadaan highlighted that the Government was also mulling the introduction of income taxes as well, noting the complexities involved, but not yet ruling any options out at present.  Impacted by the COVID-19 pandemic...

Data from Malaysia’s Department of Statistics showed that the Leading Index (LI) increased 4.9% month-on-month (MoM) in May 2020, from 0.2% in April 2020, with the number of new companies registered (up 1.8% MoM)  serving as the largest contributor to the LI.  The LI provides an early signal as to the future direction of the economy. Year-over-year, the LI grew 0.6% in May 2020, an improvement from the 5.7% YoY decline in April 2020.  According to Malaysia’s Chief Statistician, Mohd Uzir Mahidin, this im...

Indonesia’s financial services industry is being advised by Bank Indonesia (BI), to develop an open banking system, with the aim of boosting financial inclusion. Under an open banking framework, customer data may be shared with approved third parties, like financial technology (fintech) firms, allowing both groups to access valuable customer information.  According to BI Payment System Policy Executive Director, Erwin Haryono, such a platform would allow banks to accelerate their digital transformation efforts. Further, the open-banking framework ...

Data from the Investment Coordinating Board (BKPM) as announced on the 22nd of July 2020 showed that foreign direct investments (FDI) into Indonesia declined 6.9% year-over-year (YoY) to IDR 97.6 trillion during the April-June 2020 quarter. Singapore continued its position as the largest contributor to FDI in Indonesia for the first six months of 2020. According to the Head of the BKPM, Bahlil Lahadalia, this was well below FDI expectations of IDR 200 trillion for the quarter. This decline marked the second consecutive quarter of FDI contraction f...

Speaking at an international virtual event on the Halal market hosted by the Islamic Chamber of Commerce, Industry and Agriculture, Tamer Mansour, Secretary General of the Arab Brazilian Chamber of Commerce, called for the standardisation of halal certification requirements across all Islamic countries sourcing meat from Brazil. Brazil is the largest global exporter of meat, and according to Mansour, though Brazilian suppliers are willing to sell to Islamic countries, they could focus more on China, which has generated a strong demand for Brazilian meat and poultry since 2019. Acco...

Europe will raise 30% of funding for its pandemic recovery plan with green bonds, a big expansion of the marketA broader market combined with more investor interest in ‘green’ and ‘climate’ focus will heighten evidence of a green premium (the ‘greenium’)Sukuk markets could see a benefit from flows propelled by European policy and by climate-related financial impacts, but only if there is a sufficiently broad investable market of green Sukuk developed beginning today The European Recovery Plan to promote an economic rebound after the COVID-19 pandemi...

Malaysian Rating Corporation (MARC) has affirmed TSH Sukuk Murabahah (TSH Murabahah)’s MYR 150 million Medium Term Notes (IMTN) rating at A+IS, while simultaneously upgrading its MYR 50 million Sukuk Murabahah Commercial Papers (ICP) rating to MARC-1IS from MARC-2IS. In addition, the ratings agency has affirmed TSH Sukuk Ijarah (TSH Ijarah)’s MYR 300 million IMTN rating at A+IS, with a Stable Outlook for the ratings.  TSH Murabahah and TSH Ijarah are special purpose funding vehicles set up by their parent, TSH Resou...

Malaysia-based International Islamic Liquidity Management Corporation (IILM) has successfully issued a short-term A-1 rated Sukuk worth USD 490 million, for a six-month tenor.  The Sukuk, which was issued to fund the purchase of a new high credit quality asset, was priced by the market at 0.60%, with the order book reaching USD 537 million. The issuance of the USD 490 million Sukuk will raise IILM’s cash-flow generating assets from USD 2.51 billion to USD 3 billion, which is the maximum capacity, according to a statement released by IILM.  &...

Saudi Arabia’s economy is anticipated to grow at an average rate of around 3% during 2021-24 according to Moody’s Investors Service (Moody’s). Although this growth is almost double the average seen during 2015-19 (1.6%), it is lower than the 4.1% growth reported during 2005-14. Furthermore, Moody’s is expecting real Gross Domestic Product (GDP) to drop by 4.5% in 2020, following the shock of the COVID-19 pandemic. Higher fiscal deficits are expected to increase government debt to over 35% of GDP, from 22.8% in 2019.   According to Moody’s, Saudi A...