Malaysian Islamic finance, KLIFFEX 2006, Sukuk, IIRA to Rate Takaful Malaysia

Sukuk

"9MP boost for Sukuk issuance", The Edge Daily, November 24, 2006

The Malaysian Rating Corporation Bhd (MARC) projected a confident outlook for the sukuk market in Malaysia. MARC expects that sukuk issuance will grow with the recent non-Ringgit issue regulatory changes and predicts that sukuk could be issued for education, real estate and services. MARC highlighted some unresolved regulatory and legal problems relating to bankruptcy, security enforcement and financial restructuring, according to the vice president of MARC, Hafizan Haron.

"Malaysia Could Become Centre for Sukuk Issuance", Bernama, November 24, 2006

The deputy governor of Bank Negara Malaysia, the Central Bank, Datuk Mohd Razif Abdul Kadir, said that the regulatory framework set up for sukuk issuance in Malaysia could make the country the center of the fast-growing worldwide industry.

Shari'ah Quality Ratings

"Takaful Goes For Syariah Quality Rating", Bernama, November 24, 2006

Takaful Malaysia Bhd, a Malaysian takaful company has asked the Islamic International Rating Agency (IIRA) to carry out a Shari'ah Quality Rating assessment. The rating measures the Shari'ah board's structure and does not assess the actual Shari'ah-compliance nor does it review fatawa.

Islamic financial markets

"Financial markets 'are the main hurdle for Islamic banking'", Gulf Times, November 24, 2006

While the Islamic financial industry has grown rapidly, particularly over the past five years, the lack of markets in which various Shari'ah-compliant instruments can be traded hampers the continued growth of the industry. According to Alexander Theocharides, head of private banking at Swiss-based Faisal Private Bank, "We've reached enough products. We're tapping into all asset classes". Islamic financial products, like sukuk are often held to maturity because there isn't a vibrant secondary market where they can be traded.

Malaysian Islamic banking

"BNM: Islamic banking system to register good profit in 2006", The Edge Daily, November 24, 2006

Bank Negara Malaysia's Deputy Governor Mohd Razif Abdul Kadir, speaking at the Kuala Lumpur International Islamic Finance Expo 2006, announced that BNM expects the Islamic banking industry in Malaysia to exceed RM1 billion (US$274 million) in profits during 2006.

The full text of the speech is available from the BNM website.