Leading Islamic Finance with "world firsts"

" As the pioneer of new sukuk instruments, we are proud that 67% of sukuk in the global market today was issued in Malaysia ,"

Datuk Seri Abdullah Ahmad Badawi, PM Malaysia, March 2007

Islamic finance is developing at a remarkable pace worldwide. With a presence in over 60 countries, total Islamic assets under management by Islamic banks and conventional banks offering Islamic banking services exceed USD560 billion.

In Malaysia, the rapid pace of development of Islamic finance has taken place in an environment of strengthening economic growth supported by a robust regulatory framework, a wide range of innovative products and comprehensive Government policies including attractive tax incentives that have all spearheaded Malaysia’s position as one of the world’s most progressive, innovative and attractive Islamic financial centre.

At PricewaterhouseCoopers, we continuously look ahead to future trends in efforts to better advise our clients on how best to steer forward in a highly competitive environment.

  • Issuance of global sovereign Islamic bond or sukuk - RM2.2 billion (USD600 million) Malaysian Global Sukuk
  • Issuance of global corporate Islamic bond - RM540 million (USD150 million) ijarah by Kumpulan Guthrie Bhd

  • Issuance of domestic corporate Islamic bond based on Ijarah - RM160 million (USD44 million) modelled after the Malaysian Global Sukuk, issued by Ingress Corporation Bhd
  • Issuance of Ringgit-denominated Islamic bond - RM500 million (USD139 million) by a supranational body, International Finance Corporation (IFC), the private arm of the World Bank
  • Global financing for a sub-federal entity (state) in Asia - RM1.3 billion (USD350 million) Sarawak Corporate Sukuk

  • Issuance of Mudharabah Islamic Bond (profit sharing) valued at RM80 million (USD22 million) by PG Municipal Assets Bhd
  • Issuance of Sukuk Musyarakah Bond worth RM2.5 billion (USD694 million) by Musyarakah One Capital Bhd
  • Islamic residential mortgage-backed securities by Cagamas MBS Bhd under the profit- and loss-sharing principle (musharakah)

  • Global sukuk index – Dow Jones Citigroup Sukuk Index was launched
  • Islamic exchangeable bonds - Khazanah Nasional Bhd to raise RM2.7 billion (USD750 million)

Other milestones

  • Founding member and host country of the Islamic Financial Services Board (IFSB)

  • Largest supranational deal in the ringgit bond market: The World Bank issued RM760 million (USD211 million) Ringgit-denominated Islamic bonds that will mature in 2010

  • Establishment of the International Centre for Education in Islamic Finance (INCEIF)
  • Dow Jones & Co Inc and RHB Capital Bhd launched the Dow Jones-RHB Islamic Malaysia Index, a co-branded Islamic index

  • The Japan Bank of International Cooperation (JBIC) plans to issue USD300 million to USD500 million of Islamic sukuk bonds in Malaysia