According to media reports, Bank Negara Malaysia (BNM) cut its interest rate by a further 50 basis points, down to 2.0%, marking its third rate cut in 2020. This is the biggest cut in more than a decade, bringing the overnight policy rate to its lowest level since 2020. This rate cut was a measure to support the economy further, and came a day after the partial reopening of Malaysia’s economy, following a six-week movement restriction programme. Malaysia is set to fully remove all movement restrictions on the 12th of May 2020. Ma...

Indonesia's inflation rate eased in April 2020, as the measures taken to curb the spread of COVID-19 continued to reduce demand, according to data from Statistics Indonesia (BPS). The consumer price index reduced 2.67% in April 2020, compared to 2.96% in March 2020. According to the Head of BPS, Kecuk Suhariyanto, the core inflation rate of Indonesia declined to 2.85% on a year-on-year (YoY) basis from 2.87% YoY in the preceding month, in addition to the inflation falling to 0.08% in April 2020, compared to 0.1% in March 2020. He added...

Data from Statistics Indonesia (BPS) indicated that the country’s Gross Domestic Product (GDP) increased 2.97% year-over-year (YoY) in the first quarter of 2020, compared to GDP growth of 4.97% YoY in the last quarter of 2019. This marked Indonesia’s slowest pace of growth in almost twenty years.  The impact of COVID-19 was seen to have taken a toll on business activity in the country in March 2020. According to the Chairman of BPS, Suhariyanto, widespread lockdowns led to a fall in trade with many of Indonesia’s key trading partners,...

Emlak Participation Bank (Emlak) of Turkey has issued its first ever lease certificate (Sukuk) worth TRY 200 million, within the scope of its issue ceiling amounting to TRY 2 billion that was received from the Capital Markets Board (CMB) on the 26th of March 2020. According to Emlak, the Sukuk has been issued to increase the diversity among its resources. The 63-day term Sukuk was auctioned on the 28th and 29th of April 2020, without the involvement of any intermediary. The Sukuk attracted more demand than the planned issuance amount and given this success, Emlak has...

Masryef Management House (MMH), a Malaysia-based Shariah advisory firm has collaborated with microLEAP PLT, a Malaysia based peer-to-peer (P2P) financing operator, to launch Shariah-compliant investment notes, through microLEAP’s online platform. According to the Principal of MMH, Khairil Anuar Mohd Noor, based on the principles of Commodity Murabahah, MMH will ensure that Islamic funds raised on the microLEAP platform conform to the ethical and Islamic guidelines, in addition to compliance with the guidelines issued by the Sh...

The Ministry of Energy’s, Power Holding Limited (PHL) made a PKR 200 billion Sukuk issuance via the Pakistan Stock Exchange (PSX), local media reports stated. The Sukuk which was launched on Monday, the 4th of May 2020, was aimed at supporting the liquidity constraints being faced by the Government of Pakistan, by allowing the Government to overcome the circular debt issue faced by Pakistan’s power sector. The Pakistan Energy Sukuk-II (PES-II), which has a ten-year maturity period, offers semi-annual profit payments to investors, and is guaranteed by the Gover...

Finance Minister of Saudi Arabia, Mohammed al-Jadaan, has stated that Saudi Arabia must reduce its expenditure to curb the impact of COVID-19 on the country’s economy. Speaking at an interview on a local media channel, al-Jadaan stated that Saudi Arabia is dedicated to shield itself from the economic impacts of the COVID-19 pandemic through any appropriate financial measures, despite the declining oil revenue. He added that the drop in both oil and non-oil revenues will be seen further in the quarters to follow. The Finance Minister had previously mentioned t...

Malaysia's Ministry of Finance (MoF) has requested financial institutions to consider putting an end to unpaid interest (on hire-purchase loans) and profit (on fixed-rate Islamic financing) during the six-month moratorium period. Tengku Datuk Seri Zafrul Abdul Aziz, the Minister of Finance, stated that Bank Negara Malaysia (BNM) had announced these loans should be subject to increased finance charges as soon as the moratorium ends as per the 2009 National Bank Act. However, the MoF wished to take proactive measures to seek alternative options toge...

The Social Development Bank (SDB) in Saudi Arabia has recently launched SAR 9 billion worth of new initiatives to support micro businesses in the country, as well as self-employed entrepreneurs, in sectors of utmost priority and potential, according to local media reports. This program is expected to channel funding through four tracks with more than 6,000 start-up businesses gaining access to quick and easy funding as part of the first tract. The second track will support 1,000 establishments in the healthcare sector, and is aimed at providing funding support t...

The International Islamic Trade Finance Company (ITFC) has signed a USD 100 million financing arrangement with the General Authority for Supply Commodities (GASC) to fulfil the main strategic commodity requirements of the Government of Egypt (GoE) during the COVID-19 outbreak. This agreement, which forms a part of the ITFC’s Master Murabahah Agreement, will allow Egypt to meet necessary and urgent needs of the country to cope with the COVID-19 pandemic. GoE’s Minister of Supply and Internal Trade, His Excellency Dr Ali Al-Mesilhi, than...