A Literature Review: Determinants for Family Takaful Demand in Malaysia - Breaking Out of the Shadow of Conventional InsuranceShariah, Takaful

The initial public offering (IPO) of the BankIslami Ehad Sukuk by BankIslami Pakistan Limited has been successfully closed, according to a statement released on the 28th of April 2020. The statement added that the IPO attracted substantial demand from both corporate and retail investors with PKR 320.6 million subscriptions earned against the IPO value of PKR 300 million. 127 applications subscribed for the IPO, which resulted in a 7% oversubscription despite the on-going pandemic. 105 out of the aforesaid 127 subscriptions were...

PT Garuda Indonesia (Garuda) is exploring three alternatives for the settlement of its USD 498.99 million Sukuk. The alternatives proposed are full redemption, extension of maturity and payment with a discounted Sukuk price, according to Garuda Indonesia’s President Director (PD), Irfan Sebuahutra. According to the IslamicMarkets Sukuk Monitor, Garuda’s Sukuk is due to mature on the 3rd of June 2020. The PD added that these three options are being discussed with the shareholders of Garuda (prima...

According to a recent Moody’s Analytics report, Malaysia needs to address several current issues such as state income inequality and changing global energy trends to keep on growing. The report titled ‘Malaysia’s Shifting Regional Diversity’, focused on major industries in the country. One of the main challenges reported was income inequality among states in the country, particularly between manufacturing states and agricultural or natural resources states, leading to large income gaps and varying levels of economic growth between regions. Adding to this inequali...

According to President Joko Widodo, the Government of Indonesia has decided to provide a tax break for small and medium enterprises (SMEs) and provide financial assistance for micro, small and medium enterprises (MSMEs) to raise working capital during the COVID-19 pandemic.  Addressing a cabinet meeting on the 29th of April 2020, he stated that SMEs with a turnover under IDR 4.8 billion per annum would be provided the tax break facility for a period of six months effective April to September 2020.  He also stated that 23 million of micro, small, and medium ent...

Egypt is expected to commence discussions with the International Monetary Fund (IMF) over the next few days to request financial support to cope with the COVID-19 crisis. Kristalina Georgieva, Managing Director of the IMF, stated that if the comprehensive financial support is approved, this will help reinforce confidence in Egypt’s economy and lay the foundation for a strong economic recovery. According to Prime Minister, Mostafa Madbouly, the Government of Egypt is pressed to request for financial support due to the impact on the tourism sector as well as other sec...

Bangladesh Bank (BB) has created a BDT 10,000 crore refinancing scheme as part of the BDT 20,000 crore stimulus package launched by the Government of Bangladesh for the cottage, micro, small and medium enterprise (CMSME) sector.  This stimulus package is part of the total incentive package of BDT 72,350 crore announced by Prime Minister, Sheikh Hasina, to combat the impact of COVID-19.  According to a BB circular, the refinancing scheme is offered at 4 per cent interest to banks and non-bank financial institutions. Earlier in April 2020, the BB issued guidelines to prov...

The International Monetary Fund (IMF) has approved a Rapid Financing Instrument (RFI) of USD 3.4 billion in emergency financial assistance to Nigeria to support its response to the COVID-19 pandemic.   In a statement made on the 28th of April 2020, Mitsuhiro Furusawa, Deputy Managing Director and Acting Chair of the IMF, stated that the COVID-19 outbreak, coupled with the decline in oil prices and reduced demand for oil products is severely impacting Nigeria’s economy, which has led to a decline in growth and large financing needs. He added that further drops in oil pric...

The Securities Commission Malaysia (SCM) relaxed the regulations for companies offering convertible notes to registered venture capital (VC) and private equity (PE) companies. According to the SCM, there are currently 124 VC and PE firms that are registered with the SCM, managing an estimated total commitment of MYR 6 billion. The SCM stated that its latest move is expected to benefit start-ups; micro, small and medium-sized enterprises (MSMEs) as well as small and mid-cap companies; as these businesses can now lodge the issuance of their convertible notes direc...

According to Harun Çelik, the Islamic Trade Finance Corporation’s (ITFC) Regional Head for Turkey, Turkey’s Islamic banking sector has grown at a 27% CAGR over the past fifteen years, compared to the 17% growth witnessed by the rest of the banking industry. The country has six Islamic banks at present, with Kuveyt Turk, Turkiye Finans and Albaraka Turk, Turk accounting for 75% of the Islamic banking sector.  The Islamic banking industry in Turkey, although growing, is still far short of its true potential. Ratings agency, Moody’s states that withi...