MALAYSIA RECEIVES LESS CRITICISM ON MANAGEMENT OF SUKUK DEFAULTS

KUALA LUMPUR, Nov 24 (Bernama) -- Malaysia has received less criticism and
scrutiny on the management of sukuk defaults due to the country's robust
supervisory structure, established governance and disclosure standards as well
as highly developed legal framework and court system.

RAM Rating Services Bhd head of Islamic ratings, Zakariya Othman, said
Malaysia has done well in positioning itself as an advanced Islamic financial
hub.

"Regulatory structures and legal frameworks need to be established to
encourage the influx of business in that particular jurisdiction," he said.

Zakariya said this at the recent 17th Annual World Islamic Banking
Conference (WIBC) 2010 held in Manama, Bahrain.

He said a country's success in Islamic finance was not just tethered to the
number of sukuk issues or Islamic banks in its financial landscape.

Zakariya said the development and growth of this sector in Malaysia provided
a useful case study on how government and regulatory policies could combine with
the commercial and community interests of the private sector to create a robust
and thriving market.

"The findings of a survey by a Gulf Cooperation Council-owned research house
showed that Malaysia has a clear lead over other financial centres in terms of
regulatory and legislative frameworks, infrastructure, range of products and
services, risk management and audit as well as statistical, marketing and
education of Islamic finance," he said.

RAM is the sole rating partner for WIBC 2010.

-- BERNAMA