Greater volatility and growing credit risks to investments owing to the on-going COVID-19 pandemic are anticipated to impact Malaysia’s Takaful industry for 2020, according to RAM Rating Services (RAM Ratings). The rating agency expects that low interest rate environment will also strain the capital position of Takaful players if the negative duration gap between assets and liabilities widen.  Given that the economic impact of the on-going pandemic is expected to be only temporary with a gradual recovery anticipated by end-2020, RAM Ratings forecasts Malaysia’...

Following the tax breaks announced in March 2020 for 19 subsectors in the manufacturing industry, the Government of Indonesia is considering a further extension of its tax breaks to include all sectors, in order to counter the economic impact of the COVID-19 pandemic. According to Indonesia’s Finance Minister Sri Mulyani Indrawati, these tax breaks would take effect for six months with the total amount of the deducted taxes reaching USD 2.3 billion. Indrawati also stated that the Government would soon revise a ministerial regulation to allow the tax...

23 April 2020: IslamicMarkets.com (“IslamicMarkets”) is launching a LIVE Webinars platform for the global Islamic economy that will convene leading experts and market practitioners to address the key issues facing economies, firms and society. IslamicMarkets’ inaugural webinar session titled What COVID-19 Means for the Global Islamic Economy: Threats & Opportunities, will be hosted on Wednesday 29 April 2020.  The LIVE Webinars platform offers:  Insightful and Topical Webinars: Access live sessions based o...

Tejoori Instant Finance, a new financial service introduced by Bahrain Islamic Bank (BisB), allows the bank’s Tejoori account holders to obtain a financing facility almost instantly against their Tejoori account. The facility can range between BHD 200 to BHD 2,000 and will be credited to the customers’ saving account immediately after the request is processed.  Twelve months is the maximum period for which the facility can be obtained, where repayment will be excluding the profits.  The Ch...

Midciti Sukuk, a financing vehicle of KLCC Real Estate Investment Trust (KLCC REIT), saw its AAA/Stable rating on its MYR 3.0 billion Sukuk Murabahah program reaffirmed by RAM Ratings on the 22nd of April 2020. RAM Ratings reported that the rating of this Sukuk reflects the credit profile of KLCC REIT.  KLCC REIT is deemed to have superior asset quality, with assets such as PETRONAS Twin Towers, Menara 3 PETRONAS and Menara ExxonMobil under its portfolio. As such, KLCC REIT has been able to maintain robust financials with the REIT&r...

Bank Indonesia (BI), the central bank of Indonesia, purchased government bonds worth 4.65 trillion IDR from the primary auctions held during the week, in a move that marked a first for the bank as foreign investors exited the market early on, with the on-set of the Coronavirus.  BI’s Governor, Perry Warjiyo, and Head of Monetary Operations, Nanang Hendarsah, mentioned that bonds with a value of IDR 1.72 trillion were purchased on Tuesday (21st April) in a regular government Sukuk auction and bonds...

The Johor Islamic Religious Council (MAIJ) is hoping to reach a Zakat collection target of MYR 15.9 million for the year 2020, which is lower in comparison to the collection of MYR 18 million achieved in the previous year. Tosrin Jarvanthi, Chairman of the Johor Islamic affairs committee, cited the on-going pandemic as the reason for the lower projection this year, which was set based on the “Gantang” (cubic measurement) of rice for each person. Explaining further, he said the population expected to pay Zakat in Johor consists of clo...

Malaysia’s Federal Territories Islamic Religious Council’s Zakat Collection Centre (PPZ-MAIWP) has requested Muslims to pay Zakat fitrah through an online platform due to the restrictions on travel imposed by the Movement Control Order (MCO). The CEO of PPZ-MAIWP, Ahmad Shukri Yusoff, stated that the platform will be activated between April 24 and May 23 during the period of Ramadan. To provide a relief of some form to those finances have been affected by the MCO, the religious council with the approval of Federal Territories Syarak Consu...

The Philippine Stock Exchange Inc (PSE) has issued a memorandum in line with its amended Shariah Rulebook, adjusting its standards for the evaluation of businesses' conformity with Shariah principles relating to Islamic finance and eliminating certain previously placed restrictions. According to the PSE, these measures have been taken to align its Shariah guidelines with the Accounting and Auditing Organization for Islamic Financial Institutions’ (AAOIFI) Shariah Rulebook. As per the recent amendments, securities of hotels that earn revenues from providing lodging to its customers...

The Central Bank of Oman (CBO) has requested banks and financial institutions to permit Omani nationals who have borrowed from them the option of deferring repayment for a period of three months, if their incomes have been diminished due to the on-going COVID-19 pandemic. A statement issued by the CBO noted that all banks and financial companies in Oman are required to delay the collection of instalments on financing facilities provided as home financing and other personal financing facilities. The deferment should be for a period of three months from the date on whi...