ID :
147341
Mon, 10/25/2010 - 11:32
Auther :
Shortlink :
https://oananews.org//node/147341
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M'SIA WELL-POSITIONED AS MULTI-CURRENCY ISSUANCE PLATFORM FOR SUKUK - PM
KUALA LUMPUR, Oct 25 (Bernama) -- Malaysia is well-positioned as a
multi-currency issuance platform for sukuk given its access to a wide range of
players and investors, backed by significant tax incentives, Prime Minister Najib
Razak said Monday.
He said there were numerous fund-raising opportunities through the Malaysian
International Islamic Finance Centre (MIFC) initiatives where Malaysia offers
itself as a hub for fund raising.
For instance, he said, a foreign company could engage an
internationally-renowned lead arranger in Malaysia and issue a US dollar currency
sukuk with investors coming from all over the world.
"Fund-raising can also be done by setting up equity-based funds, where fund
originators can create project or infrastructure funds in Malaysia and enjoy
over 60 double-tax relief agreements that we have with other countries," he said
in his keynote address at the Global Islamic Finance Forum here.
Najib, who is Finance Minister, said funding needs of over US$450 billion
required for Malaysia's economic transformation over the next decade would
likely be addressed through sukuk raising exercise.
"I am confident that some of these funding needs will be addressed through a
sukuk-raising exercise as the global market picks up," he said.
He said Islamic finance continued to present itself as a viable and
competitive funding option to sustain robust economic growth in Asia especially with
Asian countries projected sizeable funding requirements in their long term plan.
"Although global issuance of sukuk this year to date has fallen by about 16 per
cent from the same period last year, the sukuk market is set to improve next
year as the global debt market recovers and supply increases," he said.
Najib said as the market continued to face a supply shortage, new issuance of
sukuk might be cheaper or else met by a high take-up rate, which would also
increase its attractiveness.
The prime minister also called on Asian countries to increase integration of
their financial system as developing economies strengthen their trade and
investment ties.
"Having more integrated financial systems will enable Asian countries to
efficiently channel their large savings into a vast array of investment
opportunities both within Asia and across other developing economies," he said.
It was estimated that cumulative savings in Asia would reach approximately US$80 trillion over the next ten years, which in turn could fuel productivity economic activity in the region, he said
Najib also witnessed the signing of the Articles of Agreement for the establishment of International Islamic Liquidity Management Corporation.
multi-currency issuance platform for sukuk given its access to a wide range of
players and investors, backed by significant tax incentives, Prime Minister Najib
Razak said Monday.
He said there were numerous fund-raising opportunities through the Malaysian
International Islamic Finance Centre (MIFC) initiatives where Malaysia offers
itself as a hub for fund raising.
For instance, he said, a foreign company could engage an
internationally-renowned lead arranger in Malaysia and issue a US dollar currency
sukuk with investors coming from all over the world.
"Fund-raising can also be done by setting up equity-based funds, where fund
originators can create project or infrastructure funds in Malaysia and enjoy
over 60 double-tax relief agreements that we have with other countries," he said
in his keynote address at the Global Islamic Finance Forum here.
Najib, who is Finance Minister, said funding needs of over US$450 billion
required for Malaysia's economic transformation over the next decade would
likely be addressed through sukuk raising exercise.
"I am confident that some of these funding needs will be addressed through a
sukuk-raising exercise as the global market picks up," he said.
He said Islamic finance continued to present itself as a viable and
competitive funding option to sustain robust economic growth in Asia especially with
Asian countries projected sizeable funding requirements in their long term plan.
"Although global issuance of sukuk this year to date has fallen by about 16 per
cent from the same period last year, the sukuk market is set to improve next
year as the global debt market recovers and supply increases," he said.
Najib said as the market continued to face a supply shortage, new issuance of
sukuk might be cheaper or else met by a high take-up rate, which would also
increase its attractiveness.
The prime minister also called on Asian countries to increase integration of
their financial system as developing economies strengthen their trade and
investment ties.
"Having more integrated financial systems will enable Asian countries to
efficiently channel their large savings into a vast array of investment
opportunities both within Asia and across other developing economies," he said.
It was estimated that cumulative savings in Asia would reach approximately US$80 trillion over the next ten years, which in turn could fuel productivity economic activity in the region, he said
Najib also witnessed the signing of the Articles of Agreement for the establishment of International Islamic Liquidity Management Corporation.
