According to industry experts, green financing is anticipated to witness growth as investors seek financial instruments which could lead to positive social outcomes in Malaysia. According to Gladys Chua, Head of Sustainability at RAM Sustainability, the green bond/Sukuk market in Malaysia started its expansion from 2017, with the first green Sukuk issuance by Tadau Energy for the financing of its solar power plant. Since then, Chua confirmed that the green finance sector had witnessed gradual growth with three new green securities issued in both 2017 and 2018, a...

Speaking at the launch of the Virtual Halal School at Menara Arina-UNITI on the 6th of July 2020, Minister in the Prime Minister’s Department (Religious Affairs) Datuk Seri Dr. Zulkifli Mohamad Al-Bakri, announced that the Government of Malaysia would be reviewing the Halal certification process for the food industry to facilitate the process better.  Dr. Zulfiki stated that whilst the certification process needed to be complete and carried out in accordance with stipulated standards and terms, business should not face any burden in app...

At a recent webinar hosted by Disruptive Tech Asean, Dr. Dzahar Mansor, National Technology Officer of Microsoft Malaysia, commented on how the COVID-19 pandemic has changed people’s perception towards working on the cloud.  Although technology and infrastructure are crucial considerations, Dr. Mansor added that the biggest challenge was changing peoples’ mind-set to drive a digital transformation and that COVID-19 had enforced these changes on organisations.  Dr. ...

The Government of Malaysia is expecting to present the 12th Malaysia Plan (12MP) in Parliament during early 2021, upon considering the effect of the COVID-19 pandemic on Malaysia’s economy. According to Datuk Seri Mustapa Mohamed, the Minister in the Prime Minister’s Department (Economy), the exact date of the Parliamentary presentation of the 12MP is yet to be decided, as the 12MP requires further review given the changes in Malaysia’s economic outlook following the COVID-19 pandemic. The Minister added that the plan needs to be reviewed&...

Saudi British Bank (SABB) of Saudi Arabia has announced that it will revise and update its previously developed international Sukuk program, and establish a local Sukuk program in line with the approval from SABB’s Board of Directors, dated the 8th of June 2020. In a filing with the Saudi Stock Exchange (Tadawul) on the 5th of July 2020, SABB stated that the purpose of these Sukuk programs will be to offer senior and subordinated Sukuk including the issuance of Tier II capital-eligible Sukuk, in one or more tranches, through one or more issuances, for a private placement...

Sinar Kamiri (SK)’s MYR 245 million Green, Sustainable and Responsible Investment (SRI) Sukuk Wakalah has received a rating affirmation at AA-IS with a Stable Outlook by the Malaysian Rating Corporation (MARC). SK owns and operates a 49.0MWac solar photovoltaic plant (SPP). The rating affirmation reflects SK’s stable project fundamentals, supported by a 21-year power purchase agreement (PPA) with Tenaga Nasional, with the PPA largely reducing offtaker risk. According to MARC, the rating is moderated by the variability risk...

Bahrain-based global standard-setting body, the International Islamic Financial Market (IIFM) has translated six standards pertaining to Islamic Liquidity Management and Risk Mitigation into French as part of its strategy to broaden IIFM's Islamic Financial Documentation Standardization programs and other services to new markets and regions. The French translated standards under the first phase of the aforesaid program are; Standard No. 1 – IIFM Master Agreements for Treasury Placement, Standard No. 2 – ISDA/IIFM Tahawwut (Hedging) Master Agreement, Standard No. 5...

The Philippines and Indonesia are expected to enter into a Government-to-Government (G2G) agreement to promote the export of Philippines’ Halal products to Indonesia. The two Governments have commenced discussions on this matter subsequent to new regulations of Indonesia calling for a mandatory Halal certification on products that are imported, distributed and traded across Indonesia. The Undersecretary of the Department of Trade and Industry (DTI) of the Philippines, Abdulgani M. Macatoman, stated that the Philippines wants to maximize its volum...

S&P Global Ratings (S&P Global) anticipates a recovery in Malaysia’s current account surplus, up to 3.0% of Gross Domestic Product (GDP), in 2021. According to local media, Malaysia’s current account surplus has always supported the country’s long-running fiscal deficit.   Reported at 2.9% of GDP for the first quarter of 2020, Malaysia’s current account surplus was largely steady against the 2.7% of GDP average recorded over the preceding five-year period, according to local media reports. S&P Global’s Sovereign and Internati...

Despite the Government of Malaysia currently negotiating with banks in Malaysia to extend the loan moratoriums, which are scheduled to end on the 30th of September 2020, Bank Negara Malaysia (BNM) states that it has no intention of providing an extension. According to BNM’s Assistant Governor, Adnan Zaylani Mohamad Zahid, since the moratorium came into effect on the 1st of April 2020, financial institutions have lost around MYR 47.5 billion as of the 19th of June 2020. Of this, MYR 16.6 billion was beneficial for the business sector, with the rem...