IslamicFinance.de

Malaysia’s pledge to minimise its greenhouse gas emissions by 2030 is facing challenges in terms of a mismatch in demand and supply of fundings. Bank Negara Malaysia (BNM) assistant governor Fraziali Ismail said that considerable funding gaps remain in sustainable projects, despite the roll out of green financing schemes. Fraziali emphasised that there is a need to find a way to bridge the language and information gap between scientists, government and financiers. He also emphasised the role of the financial sector, particularly that of the capital market, in driving Malaysia’s sustainable development through the sukuk market.

Malaysia’s Islamic finance sector is expected to sustain double-digit growth to reach almost RM3 trillion in 2020 under the second Capital Market Masterplan. The chairman of Bursa Malaysia, Tan Sri Abdul Wahid Omar, said the country’s Islamic funds industry has demonstrated impressive growth. The country is the third-largest market for global Islamic finance products and the world’s largest Sukuk issuer. At Bursa Malaysia 79% of the listed companies are Shariah-compliant and Shariah market capitalisation makes up 70% of the total market capitalisation of RM1.6 trillion. Over the last ten years Shariah indices consistently outperformed its conventional counterparts. Thus, Shariah-compliant investments are an attractive source of value for investors.

Malaysian borrowers who wish to continue with the six-month moratorium need to inform their respective banks of their consent via the banks’ designated platforms. Although the moratorium is automatic starting April 1, the borrowers’ consent is still legally required. Bank Negara Malaysia (BNM) said starting from May 1, bank customers with hire-purchase loans and fixed rate Islamic financing will receive a notification on the steps they must take to complete the deferment process under the six-month moratorium on loan and financing payments. Customers will be notified via SMS, email or registered mail from their banking institutions.

Malaysia's Finance Minister Lim Guan Eng said the country finally gained the tolerance element needed for digital innovation when Pakatan Harapan (PH) became the federal government. In his speech at the Securities Commission Fintech Roundtable 2019 the minister also cited a 2018 World Bank report that described Malaysia as having produced some of Southeast Asia’s most successful digital startups. He added that the government had also committed RM50 million towards a co-investment fund for ECF and P2P investments. ECF and P2P are two relatively recent developments in Malaysia that have opened up additional avenues of funding for microbusinesses and startups that may not yet qualify for traditional loans from commercial banks.

Tan Sri Khalid Ibrahim has denied allegations of a link between his recent settlement with Bank Islam Malaysia Berhad (BIMB) over a RM66 million loan and a controversial water restructuring agreement between Selangor and Putrajaya. Last month, Khalid told The Malay Mail Online he had reached an out-of-court settlement with BIMB over a US$18.52 million (RM66.67 million) loan settlement suit, without compromising PKR or the PR coalition. He declined to give further details but it is understood that the settlement was for an amount much lower than RM66.67 million. The hastily signed MoU on the water restructuring plans between Selangor and Putrajaya has added to the intrigue surrounding the March 23 Kajang by-election, with some PKR leaders questioning the timing of the deal and Khalid’s suit settlement.

The listed vehicle for Bank Islam Malaysia, BIMB Holdings is looking at several options to expand through overseas penetration and local expansion. According to Bank Islam Malaysia managing director Datuk Zukri Samat, the bank is still pursuing plans of expansion to Indonesia through a strategic partner with broad experience. As a fully fledged Islamic bank, the task is more challenging, he said. Moreover, the bank is also extending the time for its discussions with the Dubai Financial Group over the 30.5% stake in Bank Islam to the end of the months, said BIMB group managing director Johan Abdullah.

UK-based asset manager Aberdeen has launched its plans to arise two Syariah compliant unit trust funds to get onto the malaysian local retail market. According to the newest informations, the application process is in advanced stage. As industry sources familiar with the process claimed it would be an important addition to the Malaysia's Islamic financial landscape. Aberdeen Asset Management would be absolutely first fund manager to get a domestic asset management licence in Malaysia.