Malaysia: Growing role for Japan in Islamic finance

There is a growing role for Japan in the development of the Islamic finance market, according to RAM Ratings. 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. While there has 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 – has taken the first important step by debuting a US$500mil Sukuk programme in Malaysia in September.