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Masala Debut At Last
1 August, 2016Euromoney, August 2016
Malaysia has long dominated both global and domestic sukuk issuance worldwide – a function, it is assumed, of the country having put in place the enabling infrastructure much earlier than anywhere else. But after 15 years of catch-up by the rest of the world, Malaysia’s dominance is if anything increasing.
Why? New data released by the International Islamic Financial Market shows that between January 2001 and December 2015, Malaysia accounted for 67.34% of all global sukuk issuance and 88.34% of global short-term sukuk issuance, with international sukuk (which accounts for about one fifth of the market) the only area where Malaysia does not lead, lagging the UAE.
“We have been building from strength to strength since 2000,” says John Chong, chief executive officer of Maybank Investment Bank and of Maybank Kim Eng. “Malaysia always accounts for the high end of the 60s [in percentage terms] of global sukuk issuance.”
The question is why this figure is not declining as other markets gain critical mass. As of December 31 Malaysia still accounted for 57% of all outstanding sukuk worldwide – a metric within which Malaysia’s early head-start should be nullified, since most of those deals will have long since matured. This is despite the fact that Bank Negara Malaysia stopped issuing short-term investment sukuk last year; the shortfall has been made up by an increase in longer-term sovereign issuance.
Full article: http://www.euromoney.com/Article/3576287/Malaysia-stays-ahead-with-sukuk
