Malaysia

Islamic Finance To Thrive At Faster Rate In Emerging Economies

It is expected that Islamic finance will thrive at a faster rate in emerging economies. The main reasons therefore, pointed out by KFH Research Ltd., are their resilient economic dynamics and potential, and their awareness of the industry. The liquidity in the emerging markets for Islamic finance is growing continuously and fast. This results in an increase in the demand for Islamic finance products. The outlook for the industry is growth as high as 20% a year.

Islamic Scholars, ICE Futures Switch, RBS: Compliance

At least five years later than initially supposed, Saudi Arabian and Malaysian Islamic finance experts start again their efforts to create common regulations for scholars. Together with its Middle Eastern counterpart, the Malaysian International Shariah Research Academy for Islamic Finance has started its work on guidelines which will be targeted at the number of boards on which scholars can sit to reduce conflicts of interest. Also, an institution aiming to provide global accreditation will be established. Thus, the industry's need to boost confidence and improve transparency can be met.

Gatehouse advises Malaysia’s SWF on first UK real estate investment

Cooperating with Malaysia's Sovereign Wealth Fund (SWF), Gatehouse Bank has executed the GBP 165 million acquisition of the law firm SJ Berwin’s offices in London. The role of Gatehouse was Investment and Shari’ah Adviser. The deal is the first real estate investment of the Malaysian client and is essential for its wider global investment strategy. According to Chief Executive Officer of Gatehouse Bank Richard Thomas, this investment is a great example of international co-operation and demonstrates how funds can be mobilised around the world complying with the principles of Shariah.

Read more on: http://www.cpifinancial.net/news/post/16102/gatehouse-advises-malaysias-...

MNRB plans RM150m Sukuk, secures RM200m credit

MNRB Holdings Bhd has planned the launch of a Sukuk Mudharabah programme worth up to RM150mil. At the same time, the company has secured a RM200mil revolving credit-i facility from Standard Chartered Saadiq Bhd. According to the reinsurer, RM120mil will be used for refinancing the short-term revolving credit facility maturing on December 10th 2012. The remaining money will flow into the group's general working capital. The Sukuk programme has a five-year tenure and will be issued without a prospectus via direct placement.

Read more on: http://biz.thestar.com.my/news/story.asp?file=/2012/10/15/business/20121...

Axiata sukuk signals use of new assets in Islamic finance

Axiata launched a multi-currency sukuk programme followed closely by a dim sum sukuk issue. This is seen as a new level of flexibility for underlying assets in an individual deal. In September, an issue of RMB 1 billion ($158.7 million) was launched which is so far the largest RMB-denominated dim sum sukuk. For the programme itself $1.5 million were designated.

Read more on: http://www.iflr.com/Article/3101307/Capital-markets/Axiata-sukuk-signals...

BIMB gets Bank Negara nod to start talks on stake buy

Bank Negara has given its consent on negotiations between BIMB Holdings Bhd on one side and Dubai Financial Group LLC (DFG) and Lembaga Tabung Haji (LTH) on the other on the topic of BIMB Holdings Bhd's proposal to acquire DFG's stake in Bank Islam Malaysia Bhd. The negotiations are to be competed no later than March 31, 2013. According to BIMB, all partiesfirst need to receive approval from the Minister of Finance before entering into any agreement.

Read more on: http://biz.thestar.com.my/news/story.asp?file=/2012/10/9/business/121436...

Malaysia to allow business trusts

It is expected that Malaysia will permit business trusts which will be listed on the local exchange. The purpose is to increase primary-market volume and attract domestic infrastructure companies in order to prevent them from being lured abroad. Berjaya Sports Toto has already made its plans directed abroad. It is about to raise an amount of nearly S$500m (US$401m) from the IPO in Singapore of Sports Toto Malaysia. The choice of destination of the issuer of the business trust has alerted local companies.

See more on: http://www.malaysia-chronicle.com/index.php?option=com_k2&view=item&id=3...

Middle East Financial Bodies Seen To Be More Syariah-compliant Than Malaysia's

Middle East Islamic financial institutions are seen to be more Syariah-compliant than Malaysia's. This is the result of a research on "Developing a Model for Harmonization of Syariah Rulings in Islamic Finance" conducted by Dr Amir Shaharuddin from Islamic Science University of Malaysia.

See more under: http://www.bernama.com/bernama/v6/newsbusiness.php?id=699667

Q&A: Sir Iqbal Sacranie on Growth Of Islamic Finance in UK

The Islamic financial market has boomed over the last decade and is more than ever at the top of the agenda for sustainable growth and development. The world's most actively traded Islamic finance product is the Sukuk, which is becoming more and more accepted in non-Muslim countries.

See more under: http://www.ibtimes.co.uk/articles/391214/20121004/iqbal-sacranie-islamic...

SC: Islamic capital market remains promising

The Islamic capital market is prospering as the current growing expectations are rising. But in order to progress the industry, there must be strong governance, disclosure, proper due diligence, transparency, ethics, and corporate as well as social responsibility. It is also necessary to promote the syariah-based approach and increase international cooperation on syariah research and product development as well.

See more under: http://biz.thestar.com.my/news/story.asp?file=/2012/10/3/business/121171...

Malaysia's DRB-Hicom to sell 30 pct Bank Muamalat stake-source

DRB-Hicom wants to sell 30% of its 70% stake at the Bank Muamalat Malaysia that is partly owend by the Malaysian state. Malaysia's central bank has allowed AFFIN Holdings to enter talks with DRB-Hicom in order to reduce its stake to a maximum of 40%. Should the deal be successful, AFFIN would become the forth-largest Islamic bank measured by assets.

See more under: http://in.reuters.com/article/2012/09/20/malaysia-drbhicom-bank-idINL4E8...

“Strong legal framework needed for Islamic financing”

Despite the recent global economic crisis, the Islamic finance industry has continued pushing forward strongly. The industry increased its total assets by 23.8 per cent by the end of 2011. This comprised a hefty 22.4 per cent of the total assets of the banking system. As evidenced by The Banker Magazine’s 2011 rankings of top Islamic financial institutions,global recognition has not been in short supply either.

More on: http://www.nst.com.my/red/cover-story-strong-legal-framework-needed-for-...

Zeti outlines growing potential to raise funds in Chinese currency

According to Bank Negara governor Tan Sri Dr Zeti Akhtar Aziz, there is more renminbi financing in the pipeline after the two issuances of offshore yuan sukuk out of Malaysia and a yuan bond issuance by Malaysian corporations. She said that the reason for this was that there was greater potential to raise funds in the currency, especially investments in China.

More on: http://biz.thestar.com.my/news/story.asp?file=/2012/9/28/business/120915...

COVER STORY: Should you get an Islamic mortgage?

Since the enactment of the Islamic Banking Act in 1983 Malaysia has been operating with both conventional and Islamic banking systems. According to Islamic principles money lending and investing in businesses that are considered haram are prohibited. Islamic finance is all about accumulating all the available resources and providing financing based on pre-determined profits rather than dealing with interest.

More on: http://www.nst.com.my/red/cover-story-should-you-get-an-islamic-mortgage...

Malaysia takaful firms target Indonesia

Since Malaysian home takaful market is bound to tight rules, Islamic insurers direct their expansion towards neighbouring Indonesia aiming to tap three times faster growth. Great Eastern Takaful Sdn Bhd already has a facility in Jakarta and now intends to address low-income people in the region. Etiqa Takaful Bhd also plans expansion in Indonesia - it focuses on buying an Indonesian Islamic insurer.

More on: http://www.btimes.com.my/Current_News/BTIMES/articles/20120927105638/Art...

Bank Muamalat to issue 'more ethical' products

The products Bank Muamalat is planning to launch are intended to be competitive not only in terms of returns, but also in terms of corporate social responsibility. The bank wants to concentrate on products it can channel towards corporate social responsibility, what they call ethical banking. The reason therefor is that Islamic banking is pereived to be ethical banking in its core and Bank Muamalat believs there is a market for such products.

More on: http://www.cpifinancial.net/news/post/15773/bank-muamalat-to-issue-more-...

Ireland's ESB considers sukuk issue in Malaysia

The Irish Electricity Supply Board (ESB) considers issuing a sukuk in Malaysia which would make it the first large non-financial company from Europe to involve in trade with Islamic bonds. Issuing a sukuk is likely to contribute to the development of a new source of funding for companies in Europe while the euro zone debt crisis constrains sources of finance at home.

More on: http://in.reuters.com/article/2012/09/20/islamic-ireland-sukuk-idINL5E8K...

BNP Paribas partners for Islamic finance centre in Malaysia

The BNP Paribas-INCEIF Centre for Islamic Wealth Management was recently opened. It was established by BNP Paribas Malaysia Berhad and the International Center for Education in Islamic Finance (INCEIF) and is situated on INCEIF's Campus in Kuala Lumpur. The opening took place at the same time as the biannual Global Islamic Finance Forum, thus attracting a vast audience consisting of participants from Malaysia as well as international ones.

More on:http://www.investmenteurope.net/investment-europe/news/2206560/bnp-paribas-partners-for-islamic-finance-centre-in-malaysia

Thomson Reuters, Bloomberg both launch Sukuk market measures

At the Global Islamic Finance Forum (GIFF) 2012 in Kuala Lumpur the new Thomson Reuters Global Sukuk Index and the MYR-denominated Bloomberg AIBIM Bursa Malaysia Corporate Sukuk Index were brought into public. The Islamic finance industry demonstrates a growth of more than 15% a year, its leading area being the Islamic debt capital market, primarily constituted of Sukuk. According to Thomson Reuters, the Global Sukuk Index is likely to contribute to the increase in secondary market trading as well as to the facilitation of cross-market relative value trading among different asset classes.

More on: http://www.cpifinancial.net/news/post/15752/thomson-reuters-bloomberg-bo...

MAS issues 2nd tranche of junior Sukuk of RM500m

The second tranche of Malaysia Airlines' (MAS) junior Sukuk of RM500mil has been issued. Its role is to provide working capital and refinancing of existing borrowings. According to MAS, the junior Sukuk has a semi-annual profit rate of 6.90% a year up to the tenth year.

More on: http://biz.thestar.com.my/news/story.asp?file=/2012/9/18/business/201209...

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