ISLAMIC CAPITAL MARKET ACHIEVED SIGNIFICANT MILESTONES IN 2009

KUALA LUMPUR, March 24 (Bernama) -- The Islamic capital market achieved
significant milestones last year with landmark issuance and listing of US dollar
denominated sukuk (Islamic Bonds), Malaysian central bank said.

Bank Negara Malaysia or BNM is the Malaysian central bank. Its headquarters
is located in Kuala Lumpur, is establish to issue currency, act as banker and
adviser to the
Government and regulate the country's credit situation.



Despite the downturn in the global economy and heightened risk environment,
the Islamic capital market in 2009 saw the landmark issuance of the US$1.5
billion Emas Dollar Sukuk and US$3 billion Emas Dollar Bond by Petronas.

The Emas Dollar Sukuk was listed concurrently on Malaysia Exchange, the
Labuan International Finance Exchange and the Luxembourg Stock Exchange.

Due to an overwhelming response and growing confidence of investors in
sukuk issuances, the papers were oversubscribed by 6.28 times, the central bank
said in its Financial Stability and Payment Systems 2009 Report released
Wednesday.

Bank Negara said the listing of the GE Capital Sukuk amounting to US$500
million on Bursa Malaysia also elevated its status as the world’s top exchange
in terms of value of sukuk programme listings in 2009.

"These developments in the sukuk market reinforced Malaysia’s position as
the centre for sukuk origination and an international Islamic finance centre,"
it added.

According to the central bank, to further advance Malaysia as an
international Islamic financial centre, the Malaysia International Islamic
Financial Centre's (MIFC) promotional activities focused on increasing foreign
participation in the Malaysian Islamic financial system, including from
established financial centres in Europe, Asia and the Middle East.

It said a new long-term brand, Shaping Islamic Finance Together, was
introduced to position Malaysia as the intellectual epicentre for Islamic
financial activities.

Shaping Islamic Finance Together is Malaysia's brand proposition to global
talent, leading players, investors and issuers to shape the future of Islamic
finance together through the MIFC initiative by leveraging on and benefiting
from the country's more than 30 years experience in the sector.

Meanwhile, consumers of financial services have an important role in
exerting market discipline on financial institutions while contributing towards
the development of an efficient and competitive financial sector, Bank Negara
stated.

It said a key pillar of the Bank’s developmental initiatives is to promote
fair and equitable market practices by financial institutions and raise the
level of financial capability of consumers through consumer education and
awareness programmes.

During the year, Bank Negara enhanced its surveillance over market
practices of licensed financial institutions.

Thematic examinations focusing on the imposition of fees and charges, credit
card promotions, selling of investment-linked and structured products were
conducted, it said.

-- BERNAMA