SUKUK TO REMAIN UPBEAT IN 2010

KUALA LUMPUR, Dec 3 (Bernama) -- Sukuk (Islamic bonds) is fast growing in
importance as a financial instrument and expected to remain upbeat or even
overtake conventional issuance in 2010, a conference was told Thursday.

"The sukuk may exceed the conventional issuance next year as it continues
to grow in popularity," RAM Rating Services Bhd's deputy chief
executive officer, Chong Kwee Siong said.

He was speaking during a panellist session on Malaysia's debt capital
markets - new directions in bonds and sukuks at the ongoing 14th Malaysian
Capital Market Summit 2009.

The other panellists were CIMB Islamic Bank Bhd's chief executive
officer, Badlisyah Abdul Ghani and the chief executive officer of Maybank
Investment Bank Bhd, Mohammed Rashdan Mohd Yusof.

Chong said sukuk played a significant role in the private debt security
(PDS) market, making up more than 30 per cent of the total bond issuance.

Meanwhile, Badlisyah said sukuk issuance had grown exponentially with
US$18 billion worth issued globally in 2009.

He highlighted that the Malaysian sukuk market is the deepest and broadest
in the world.

Badlisyah pointed out that it is also the only one with a comprehensive
legislative, regulatory, legal and syariah compliance in the world.

He said countries like Singapore and Indonesia have already issued the sukuk
and Thailand is looking to issue it early next year.

"There is a healthy issuance of sukuk in the market. I believe sukuk will be
the bigger player and remain robust for the rest of the year," said Mohammed
Rashdan.

He said sukuk is syariah compliant and globally accepted.

Mohammed Rashdan also said there was a need to strengthen institutional
markets in order to create more institutional funds to mobilise greater
financing in bonds.

"This includes attracting foreign fund managers to operate from Malaysia,"
he added.
-- BERNAMA