MALAYSIA - CAPITAL MARKETS - Malaysia revises Shari’ah screening methodology

www.cpifinancial.net  - The Shari’ah Advisory Council (SAC) of the Securities Commission Malaysia (SC) has announced the adoption of a revised screening methodology to determine the Shari’ah-compliant status of listed companies.

In view of the developments and growing sophistication of the Islamic finance industry since the introduction of the current screening methodology in 1995, the SAC has revised the methodology by adopting a two-tier quantitative approach which applies the business activity benchmarks and the newly-introduced financial ratio benchmarks. The outcome of the revised methodology will be reflected in the List of Shari’ah-compliant Securities by the SC's SAC effective from November 2013.  (source)

MALAYSIA - CAPITAL MARKETS - Sukuk market set to break 1 trillion-ringgit barrier in Malaysia

The total Malaysian Islamic capital market (ICM) is projected to reach almost three trillion ringgit, RM2.88 trillion to be precise, in the year 2020, with the sukuk market set to break the one trillion-ringgit barrier to account for RM1.33 trillion worth of issuances and the market capitalization of Shariah-compliant companies accounting for RM1.55 trillion. (source)

INDONESIA - EVENTS - High level conference : Malaysia to Award Islamic ‘Mega-Bank’ License in Third Quarter

Malaysia will issue a license for an Islamic “mega bank” in the third quarter of this year to help mobilize funds for businesses around the world, the country’s central bank governor said.

The Southeast Asian nation will also start a cross-border clearance platform for Shariah-compliant bonds, or sukuk, around the same time, Bank Negara Malaysia Governor Zeti Akhtar Aziz said in an interview in Jakarta yesterday. The initiatives are part of a plan to help fill gaps in the $1 trillion global Islamic finance industry. (source)

INDONESIA - EVENTS - High level conference - RAJA NAZRIN: Indonesian and Malaysian financial centers can look into products for lower income groups

JAKARTA, July 18 (Bernama) – The Indonesian and Malaysian Islamic financial centres can look into developing productive Syariah-based instruments such as micro-financing tools, incorporating Qardhul Hassan (or benevolent loans), Zakat and Sadaqah to channel financing to and facilitating the economic participation of the lower income groups, said the Raja Muda of Perak, Raja Dr Nazrin Shah. (source)

MALAYSIA - CAPITAL MARKETS - SC revises Guidelines for corporate bonds, trust deeds and sukuk

The Securities Commission Malaysia (SC) today issued the revised Private Debt Securities (PDS) Guidelines, Sukuk Guidelines and Trust Deed Guidelines to enhance the regulatory framework for fundraising and product regulation in the Private Debt Securities and Sukuk markets.

The revised Sukuk Guidelines streamline the approval process and time-to-market for the issuance of corporate bonds and sukuk. The revisions also facilitate a more informed investment decision-making process with additional provisions to ensure greater disclosure of relevant information to investors.

The revised Sukuk Guidelines provide greater clarity on the application of Shariah rulings and principles endorsed by the SC�s Shariah Advisory Council in relation to Sukuk transactions while the Trust Deed Guidelines improves disclosure standards and protection for corporate bond and sukuk holders.

Malaysia is currently the largest sukuk market in the world, accounting for about 65% of the global issues, while the bond market is the 3rd largest as a percentage to GDP in Asia (ex-Japan). The revised Guidelines will help Malaysia maintain its leading position by continuously attracting both local and international issuers and investors into the corporate bond and sukuk markets.
 

The revised Private Debt Securities Guidelines, Sukuk Guidelines and Trust Deed Guidelines will supersede the Guidelines on the Offering of Private Debt Securities, Guidelines on the Offering of Islamic Securities, Guidelines on the Minimum Contents Requirements for Trust Deeds and all the related Practice Notes respectively. (source -Download Sukuk Guidelines - Trust Deeds - Private Debt Securities)