Entries in English and Malay (Bahasa Melayu)

Saturday, 22 June 2013

Malaysia’s sukuk market to remain bullish this year

KUALA LUMPUR: Malaysia’s sukuk market is expected to remain bullish this year despite the volatility in global markets, especially in the US, says CIMB-Principal Islamic Asset Management chief executive officer, Ramlie Kamsari.

He said Malaysia’s sukuk market will see healthy growth like last year given the strong fundamentals, good infrastructure, regulatory framework as well as the syariah system.

“They (investors) see Malaysia as a good market to tap for both conventional and Muslim investors.

“In fact, the large sukuk issuances recently were due to the huge appetite from conventional investors,” he told reporters after a media briefing on the ‘Global Fixed Income Market and its Potential Effects on Sukuk’ here yesterday.

Ramlie said the local sukuk market was likely to continue to see good interest for the Gulf Cooperation Council issuances, particularly the United Arab Emirates’.

There could also be new issuances from the frontier markets, or the non-traditional ones, including from Europe, he said.

He expected Malaysia to continue to be the world’s largest sukuk market with 69 per cent market share.

Meanwhile, chief investment officer, Michael Zorich, said the global sukuk market moved at a moderate pace as investors were cautious due to the volatility in the fixed income market in the US.

He, however, said the market will catch up towards the year-end and be equalled last year’s RM46.5 billion in value.
“The anticipation of an increase in the US rate will push them (issuers) to wait for the price to be stabilised.
“But, if they don’t issue now, the rates may continue to go up and it can get more expensive to issue the sukuk and bond as well.

So they need to balance their decision,” he said.

Currently, the benchmark 10-year US Treasury rate stood at 2.4 per cent, rising from 1.6 per cent in the early May, and is expected to climb up to 2.5 per cent by year-end.

Ramlie said the volatility in the US fixed income market will not significantly affect the sukuk market as the Islamic bond has its own asset class.

“When investors seek diversification play, they will look at sukuk as another asset class. So, there will be continued demand for investment into sukuk,” he said.

(Borneo Post Online / 22 June 2013)

Alfalah Consulting - Kuala Lumpur:
Islamic Investment Malaysia:

Islamic banking should be on national agenda

Islamic banking should be part of the national agenda in order to promote a Shariah-based financial system, according to State Bank of Pakistan (SBP) Head of Islamic Banking Salimullah.
He was addressing the participants here at the Islamic Finance Conference and Exhibition on Friday.
Salimullah said that Islamic banking has been on an expansion path throughout the country, providing a viable alternative model of the economy to the world.
The SBP has planned to intensify its efforts towards creating awareness and promoting Islamic banking across the country in collaboration with all Islamic banks, he informed the participants.
He said the central bank wants to double the Islamic banking branches’ network from 1,000 to 2,000 nationwide, and increase its share in the overall banking industry from 5% to 15%.
He said SBP is also actively trying to resolve the issues faced by Islamic banks, including financial difficulties, issues with the Securities and Exchange Commission of Pakistan’s regulations and taxation difficulties with the Federal Board of Revenue.
He said the central bank is working to enhance the capacity of Islamic banks and the Islamic banking divisions of conventional banks through advisory and consultation, and reassured the audience that major liquidity and asset building issues would be settled in the coming years.

(Express Tribune / 22 June 2013)

Alfalah Consulting - Kuala Lumpur:
Islamic Investment Malaysia:

Finance: Islamic banks' share set to rise in Turkey

ISTANBUL, JUNE 21 - The participation banks' share in the Turkish banking system, at 5%, is below expectations, Deputy Prime Minister Ali Babacan said yesterday, as a participation bank Albaraka looks to found an Islamic insurance company if the legal basis is formed in the country. ''The number of participation bank branches has reached 869, with 16,190 staff members. Their size of assets has increased to 81.5 billion Turkish Liras (32 billion euros), as their funds provided real sector worth 60 billion liras (23.6 billion euros). The participation banks' share in assets is 5% and in funds it's 6%. These figures are below our desires,'' said Babacan during the conference on 'Islamic Finance Instruments: Expectations and Opportunities for Turkey' as daily Hurriyet reports.

The minister stated that the private sector has started sukuk exports like the Treasury. The tax difference between sukuk (a Shariah-compliant Islamic bond) and bonds has been removed, legislation related to Islamic financing has been completed, and the private pension system has become able to be built on non-interest instruments, as preferred by 300,000 people. Meanwhile, Bahrain-based Albaraka CEO Adnan Ahmed Yousif said they told Turkish authorities that they were planning to found an Islamic insurance firm. Turkey doesn't have a legal basis for this, but it has expressed its intention to the authorities, Yousif added. He also said two new participation banks from the Gulf countries had been preparing to enter to the country.

Albaraka Turk, Bank Asya, Turkiye Finans and Kuveyt Turk are the participation banks currently operating in Turkey. 

(Ansa Med / 21 June 2013)

Alfalah Consulting - Kuala Lumpur:
Islamic Investment Malaysia:

Latest Posts

Upcoming Events on Islamic Finance, Wealth Management, Business, Management, Motivational

Alfalah Consulting's facebook


Alfalah Consulting is NOT providing any kind of loan to finance project etc and asking for a fee. If you've received any email claiming to be from Alfalah Consulting, offering loan to you, please ignore it or inform us for further actions. Our official email is If you've received an email from, that's NOT from us. Be cautious!