Malaysia: Growing role for Japan in Islamic finance
KUALA LUMPUR: There is a growing role for Japan in the development of the Islamic finance market, says RAM Ratings at an Islamic Finance conference on Wednesday.
RAM said tax reforms were introduced in 2011 to level the playing field for the issuance of J-Sukuk and conventional bonds for tax purposes, and amendments had also been made to Japanese Securitisation Law to facilitate the issuance of J-Sukuk.
It said while there had yet to be any issuance of J-Sukuk in the Japanese market, BTMU Malaysia Bhd – a wholly-owned subsidiary of Bank of Tokyo-Mitsubishi UFJ, Japan's largest lender – had taken the first important step.
In September this year, it became the first Japanese bank to enter the Sukuk market in when it debuted a US$500mil Sukuk programme in Malaysia.
The conference was jointly organised by RAM and the Rating and Investment Information Inc (R&I), Japan's largest credit rating agency with nearly 40 years of bond market and credit rating experience.
More than 150 members from financial institutions, insurance companies, pension funds and corporates from Tokyo.