The Government of Malaysia has announced the postponement of sales tax on locally assembled vehicles effective from June 2020 until the end of year 2020, following a sharp fall in vehicle sales in the five months ending May 2020. In addition, the Government has also decided to reduce the sales tax on imported cars to 5% from a previous 10%, according to Tan Sri Muhiyiddin Yassin, the Prime Minister of Malaysia. With vehicle sales statistics for the month of May 2020 not being publicly available as of yet, the vehicles sales data for the 4 mon...

Industry experts from domestic law firm Assegaf Hamzah and Partners (AHP), have analysed that most banks in Indonesia are not equipped to deal with the economic disruptions caused by the on-going pandemic. According to Ibrahim Sjarief Assegaf, partner at AHP, most banks in Indonesia are burdened with thin levels of capitalisation and minimum sources of deposits, making them more susceptible to liquidity and solvency issues. According to AHP, the Indonesian banking sector was facing challenges even pre-COVID-19, following the easing of ownership regulat...

Indonesian businesses have demanded for an additional stimulus package of IDR 625.1 trillion in working capital to help them overcome the business implications caused by the COVID-19 pandemic, according to the Indonesian Employers Association (APINDO). The Chairman of APINDO, Hariyadi Sukamdani, stated that the additional stimulus would be really important for the industry and hoped that it would be provided to local businesses. Amongst the business segments that have requested for additional stimulus, the textile sector has requested for the largest, amounting to ID...

Moody’s Investors Service (Moody’s) has affirmed Qatar Islamic Bank’s long-term deposit rating at A1, with a Stable Outlook.   According to Moody’s, the rating is reflective of QIB’s sufficient capital buffers, good profitability, sound liquidity, together with its limited reliance on market funding, due to its successful, growing corporate and retail Islamic banking franchise. The rating affirmation also incorporates QIB’s access to support from the Government of Qatar if ne...

United Kingdom (UK) based Shariah-compliant gold trading platform, Minted, is set to launch its web and mobile platforms in July 2020. Users would be able to purchase gold either in monthly repayment plans or through an outright payment option through this platform.  The gold trading platform is expected to operate based on the guidelines issued by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). According to local media reports, Minted is also currently developing an auto-investment platform and intends to launch a digital challenger bank...

Wahed Invest (Wahed), an USA based Shariah-compliant fintech investment firm, has raised USD 25 million in venture capital (VC) funding to ensure that people can spend their funds in a diversified portfolio of securities, commodities, real estate, as well as Sukuk. The USD 25 million funding round attracted majority of the funding from Saudi Aramco Entrepreneurship Ventures unit, Dubai-based BECO Capital and Boston-based Cue Ball Group, as well as Dubai Cultiv8 and Rasameel.  Junaid Wahedna, the Founder of Wahed stated that the investment firm h...

PT Pegadaian, an auction house owned by the Government of Indonesia, aims to raise IDR 1.125 trillion (USD 81 million) worth funding for working capital requirements, through a three-tranche securities issuance, according to the offer document. According to media reports, the deal will include an IDR 375 billion Sukuk Mudarabah element. The indicative rate of return for both Shariah-compliant securities as well as conventional securities is expected to range between 6.25% - 7.25% for a 370-day tranche, whilst the 3-year tranche is expected to carry a rate between 7.1...

The Government of Malaysia is considering launching a National Stimulation Fund worth MYR 1.2 billion (USD 281.3 million) in July 2020, to support the digital transformation of local businesses by encouraging innovation and broadening domestic venture capital. According to local media reports, the Government of Malaysia will fund MYR 600 million out of the aforesaid amount whilst the remaining MYR 600 million will be funded by domestic and international investors. International investors that have expressed interest included SK Group, Hanwha Asset Management, KB Investment Co. Ltd,...

With the IDR returning to pre-COVID-19 pandemic levels, Bank Indonesia (BI) expects the IDR to strengthen further as foreign investors make a return amidst the global economic recovery. According to media reports, the IDR has gained 15% since the end of March 2020 to IDR 13,877 per USD as of the 5th of June 2020.According to the Governor of BI, Perry Warjiyo, foreign investors’ confidence in Indonesia is regaining as reflected by increasing capital inflow in terms of the purchase of Government securities. However, Warjiyo added that the IDR is still undervalued and will strengthen furt...

The World Bank has predicted the economy of the United Arab Emirates (UAE) to contract by 4.5% in 2020, driven by the impacts of the COVID-19 pandemic as well as due to the shutdowns imposed to curb the spread of the pandemic. Nevertheless, the World Bank forecasts that the economy will rebound in 2021 and grow by 1.4% as oil and non-oil sectors improve along with the ease of restrictions while normalcy returns to the global economy. In its report titled ‘Global Economic Prospects 2020’, issued on the 8th of June 2020, the World Bank expects that the...