www.btimes.com.my -KUALA LUMPUR: Affin Holdings Bhd, Malaysia’s smallest banking group by
market value, rallied the most in a month after obtaining central bank
approval to start talks to buy a stake in the country’s second-oldest
Islamic bank.
The stock advanced as much as 2.3 per cent in Kuala
Lumpur trading to RM3.56. It pared gains to RM3.54 at 11:50am, poised
for its steepest increase since July 18. It was the second-biggest
increase in the Bursa Malaysia Finance Index, which climbed 0.3 per
cent.
Acquiring a stake in Bank Muamalat Malaysia Bhd may
increase Affin’s scale and help strengthen its position in the Southeast
Asian nation’s Islamic banking industry, according to a brokerage
report by Alliance Financial Group Bhd today. Bank Muamalat was formed
in 1999, the second full-fledged Islamic bank set up in the country
after Bank Islam Malaysia Bhd. (source)
Showing posts with label malaysia. Show all posts
Showing posts with label malaysia. Show all posts
Monday, August 20, 2012
Wednesday, August 01, 2012
MALAYSIA - CAPITAL MARKETS - First Resources Issues RM600 Million Islamic Notes
www.theindonesiatoday.com -SINGAPORE (Indonesia Today) - First Resources
Limited, a company controlled by Indonesian family of Ciliandra
Fangiono, has issued RM600 million of Islamic medium term notes (IMTN).
The IMTN issued Tuesday, July 31, 2012 is part of the RM2 billion Ringgit-denominated Islamic medium term note program of First Resources.
The IMTNs have a tenor of five (5) years and will mature on 31 July 2017. The IMTNs were successfully priced on a “book build” basis and will bear a periodic distribution rate of 4.45% per annum, payable semi-annually in arrears. (source)
The IMTN issued Tuesday, July 31, 2012 is part of the RM2 billion Ringgit-denominated Islamic medium term note program of First Resources.
The IMTNs have a tenor of five (5) years and will mature on 31 July 2017. The IMTNs were successfully priced on a “book build” basis and will bear a periodic distribution rate of 4.45% per annum, payable semi-annually in arrears. (source)
Wednesday, July 25, 2012
MALAYSIA - FINANCE - Malaysia's pension reform may boost Islamic funds
www.reuters.com - SYDNEY, July 23 (Reuters) - Malaysians will have more room
to allocate part of their retirement contributions to Islamic
investments under sweeping government reforms to the pension
system.
At present, the Employees Provident Fund (EPF) receives public pension contributions and invests the money. Some of that investment is in sharia-compliant areas such as sukuk and halal stocks, but contributors have limited scope to ensure the money is being used that way. A maximum 20 percent of savings can be placed through the EPF into a single mutual fund. (full story)
At present, the Employees Provident Fund (EPF) receives public pension contributions and invests the money. Some of that investment is in sharia-compliant areas such as sukuk and halal stocks, but contributors have limited scope to ensure the money is being used that way. A maximum 20 percent of savings can be placed through the EPF into a single mutual fund. (full story)
Friday, July 20, 2012
INDONESIA - BANKING - Asia Islamic Banking Assets Grow 15 Percent per Year
WWW.REPUBLIKA.CO.ID, KUALA LUMPUR - Islamic Banking Assets showed geliatnya Asia last year. Estimated growth of sharia banking assets reached 15 percent per year for the next 10 years.
It is inferred by the global body setting standards, which recorded growth of sharia banking in Asia.
Based on data from the central bank, ownership of assets in Malaysia increased by 27 percent over the past year. Until April 2012 the value of assets in Malaysia reached 344 billions dollars. Official state office in Indonesia's growth in assets reached Rp 144 trillion (15.2 billion dollars), or increased 43 percent.
Secretary General of the Kuala Lumpur-based Islamic Financial Services Board (IFSB), Jaseem Ahmed, said the growing need for increased consumer as a motor of this asset. (source)
It is inferred by the global body setting standards, which recorded growth of sharia banking in Asia.
Based on data from the central bank, ownership of assets in Malaysia increased by 27 percent over the past year. Until April 2012 the value of assets in Malaysia reached 344 billions dollars. Official state office in Indonesia's growth in assets reached Rp 144 trillion (15.2 billion dollars), or increased 43 percent.
Secretary General of the Kuala Lumpur-based Islamic Financial Services Board (IFSB), Jaseem Ahmed, said the growing need for increased consumer as a motor of this asset. (source)
INDONESIA - REGULATIONS - Indonesia's new bank rules may not hit Maybank, CIMB
www.btimes.com.my - KUALA LUMPUR:Indonesia's central bank has
issued new rules limiting single ownership in domestic banks at 40 per
cent but allows exemptions that could let Malaysia's top two lenders
hold on to their controlling stakes in banks there.
Bank Indonesia, in a statement on Wednesday, said public-listed
financial institutions will be allowed to keep their current ownership
structures in Indonesian banks, provided they maintain high levels of
corporate governance and financial health, including a tier-1 capital
ratio of over six per cent.
From December 2013, those that see their corporate governance and financial health ratings fall to unacceptable levels for three consecutive reporting periods will have to sell their stakes down to the new limit. (source)
From December 2013, those that see their corporate governance and financial health ratings fall to unacceptable levels for three consecutive reporting periods will have to sell their stakes down to the new limit. (source)
Tuesday, July 17, 2012
MALAYSIA - OPINION - Ramadan wish list for Islamic finance
www.btimes.com.my - WHAT THE GOAL IS: The central issue is about the industry controlling its own destiny
“Behind every success is endeavour… behind endeavour, ability…
behind ability, knowledge… behind knowledge, a seeker ….” Unknown.
AS THE blessed month of Ramadan arrives, here is my “seeking” list for Islamic finance. It’s not about another voice asking when the International Islamic Liquidity Management Corporation (IILM) will issue its first paper or disagreeing with CIMB Group CEO Datuk Seri Nazir Razak’s comment on “rolling back” government’s involvement in business, but more to do with controlling our own Islamic finance manifest destiny. (source)
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AS THE blessed month of Ramadan arrives, here is my “seeking” list for Islamic finance. It’s not about another voice asking when the International Islamic Liquidity Management Corporation (IILM) will issue its first paper or disagreeing with CIMB Group CEO Datuk Seri Nazir Razak’s comment on “rolling back” government’s involvement in business, but more to do with controlling our own Islamic finance manifest destiny. (source)
Thursday, July 05, 2012
INDONESIA - BANKING - BIMB awaits response from Indonesian bank
www.thestar.com.my -
KUALA LUMPUR: Bank Islam Malaysia Bhd (BIMB)is awaiting response from an Indonesian Islamic bank on its proposed offer to acquire 30% to 40% stake, said managing director Datuk Seri Zukri Samat.
Zukri said the proposed acquisition was part of BIMB’s move to expand its overseas operations.
“BIMB has identified one bank and has indicated its offer to them but so far, we have yet to receive any response to our proposal,” he said. (source)
Zukri said the proposed acquisition was part of BIMB’s move to expand its overseas operations.
“BIMB has identified one bank and has indicated its offer to them but so far, we have yet to receive any response to our proposal,” he said. (source)
MALAYSIA - BANKING - Stanchart to make KL its Islamic banking hub
www.btimes.com.my - UPBEAT MOOD: Lender seeks to capitalise on Malaysia’s long-standing
experience and expertise in the sector
MALAYSIA'S efforts to become an international Islamic
finance centre have received a boost as the country's oldest bank, Standard
Chartered Bank, (StanChart) is making Kuala Lumpur its global hub for Islamic
consumer banking.
The bank's new global hub will be led by Wasim Saifi, the
new chief executive officer (CEO) of Standard Chartered Saadiq Bhd (Saadiq
Malaysia). Wasim is also StanChart global head of Islamic consumer banking. (source)
Saturday, June 30, 2012
WORLD - CAPITAL MARKETS - 15% sukuk growth seen
www.thestar.com.my - KUALA LUMPUR: The Islamic finance industry will grow 15% annually in
the next decade, after syariah- compliant banking assets surged in Asia
in the past year, according to a global standards-setting body.
Holdings in Malaysia rose 27% to RM344bil in the 12 months to April 30, according to the central bank. In Indonesia, they climbed 43% to 144.3 trillion rupiah (US$15.2bil), official data show.
Rising consumer demand for banking services was helping drive the market, Jaseem Ahmed, secretary general of the Kuala Lumpur-based Islamic Financial Services Board (IFSB), said in a June 21 interview.
Government spending programmes in the key Islamic centres of Asia and the Middle East were bolstering economic growth and bringing in more funds for lenders, Rafe Haneef, chief executive officer at HSBC Amanah Malaysia Bhd, said on Tuesday. Industry assets may reach US$1.1 trillion in 2012, compared with US$826bil in 2010, according to a report from Ernst & Young LLP. (source)
Holdings in Malaysia rose 27% to RM344bil in the 12 months to April 30, according to the central bank. In Indonesia, they climbed 43% to 144.3 trillion rupiah (US$15.2bil), official data show.
Rising consumer demand for banking services was helping drive the market, Jaseem Ahmed, secretary general of the Kuala Lumpur-based Islamic Financial Services Board (IFSB), said in a June 21 interview.
Government spending programmes in the key Islamic centres of Asia and the Middle East were bolstering economic growth and bringing in more funds for lenders, Rafe Haneef, chief executive officer at HSBC Amanah Malaysia Bhd, said on Tuesday. Industry assets may reach US$1.1 trillion in 2012, compared with US$826bil in 2010, according to a report from Ernst & Young LLP. (source)
Monday, June 25, 2012
MALAYSIA - CAPITAL MARKETS - Bursa Malaysia losing its glitter
www.thesundaily.com - PETALING JAYA (June 25, 2012): Once considered the
third-largest market in Asia after Tokyo and Hong Kong during the 1990s,
Bursa Malaysia now needs to do more or risk falling further behind its
competitors, analysts warned.
They said it's not enough to pay lip service to the goal of developing Bursa Malaysia into an attractive and competitive exchange in the region, but not act on it.
"In the early 1990s, Bursa Malaysia (then known as Kuala Lumpur Stock Exchange) used to be on par with Singapore's stock exchange (in terms of vibrancy). Back then, volume in the Singapore stock market was very much dependent on Malaysia when investors in Singapore were allowed to trade Malaysian shares on the CLOB (Central Limit Order Book system) market," said an analyst. (source)
They said it's not enough to pay lip service to the goal of developing Bursa Malaysia into an attractive and competitive exchange in the region, but not act on it.
"In the early 1990s, Bursa Malaysia (then known as Kuala Lumpur Stock Exchange) used to be on par with Singapore's stock exchange (in terms of vibrancy). Back then, volume in the Singapore stock market was very much dependent on Malaysia when investors in Singapore were allowed to trade Malaysian shares on the CLOB (Central Limit Order Book system) market," said an analyst. (source)
MALAYSIA - BANKING - CIMB takes aim at Goldman, JPMorgan
www.btimes.com.my - CIMB Group Holdings Bhd, Southeast Asia’s top-ranked investment bank
over the past three years, is taking aim at a bigger market following
its acquisition of some of Royal Bank of Scotland Group Plc’s operations
in Asia.
The Malaysian company can now compete with rivals including Goldman Sachs Group Inc and JPMorgan Chase & Co for Asia- Pacific deals, Chief Executive Officer Nazir Razak said in an interview in Kuala Lumpur. CIMB agreed in April to buy most of Edinburgh-based RBS’s investment banking and cash equities businesses in the region for US$142 million.
The acquisition, which initially seemed to be an “audacious” idea, will complete the bank’s operations and help CIMB boost market capitalization to more than RM100 billion (US$31 billion) by 2015, Nazir said. That’s about 75 percent more than its current value. The Kuala Lumpur-based lender also targets becoming one of the top three Southeast Asian banks by assets and return on equity. (source)
The Malaysian company can now compete with rivals including Goldman Sachs Group Inc and JPMorgan Chase & Co for Asia- Pacific deals, Chief Executive Officer Nazir Razak said in an interview in Kuala Lumpur. CIMB agreed in April to buy most of Edinburgh-based RBS’s investment banking and cash equities businesses in the region for US$142 million.
The acquisition, which initially seemed to be an “audacious” idea, will complete the bank’s operations and help CIMB boost market capitalization to more than RM100 billion (US$31 billion) by 2015, Nazir said. That’s about 75 percent more than its current value. The Kuala Lumpur-based lender also targets becoming one of the top three Southeast Asian banks by assets and return on equity. (source)
MALAYSIA - BANKING - Malaysia May Liberalize Banking Sector
www.thejakartaglobe.com - Malaysia, the third-biggest economy in Southeast Asia, is considering
opening up its banking system to foreign investors, a move seen by
analysts as part of the country’s efforts to expedite integration into
the so-called Asean Community in 2015.
Zeti Akhtar Aziz, governor of Bank Negara Malaysia, that nation’s central bank, said the country was preparing new banking rules to provide greater flexibility in the nation’s financial system.
“We are now pushing a new law in parliament for the full financial system,” Zeti said after delivering a keynote speech at the Wharton Global Alumni Forum in Jakarta on Friday. “We’re not sure when it will go, either this time or next time. Next time [may mean] in September. But that law will give us more flexibility in the licensing,” she said. (source)
Zeti Akhtar Aziz, governor of Bank Negara Malaysia, that nation’s central bank, said the country was preparing new banking rules to provide greater flexibility in the nation’s financial system.
“We are now pushing a new law in parliament for the full financial system,” Zeti said after delivering a keynote speech at the Wharton Global Alumni Forum in Jakarta on Friday. “We’re not sure when it will go, either this time or next time. Next time [may mean] in September. But that law will give us more flexibility in the licensing,” she said. (source)
MALAYSIA - BANKING - Maybank IB downgrades BIMB to 'sell'
www.btimes.com.my -Maybank IB Research has downgraded BIMB Holdings Bhd to "sell" from
"buy"’ as it sees the recent run-up in the Islamic financial
institution’s share price as excessive.
“Much as we continue to view Bank Islam’s and Syarikat Takaful Malaysia Bhd’s (BIMB’s units) prospects positively, the recent run-up in BIMB’s share price is cause to pause and take stock,” the research house said in a note on Monday. (source)
“Much as we continue to view Bank Islam’s and Syarikat Takaful Malaysia Bhd’s (BIMB’s units) prospects positively, the recent run-up in BIMB’s share price is cause to pause and take stock,” the research house said in a note on Monday. (source)
Friday, June 22, 2012
MALAYSIA - BANKING - Al-Rajhi bank unveils Commodity Murabahah
www.btimes.com.my - Al Rajhi Bank Malaysia on Monday introduced Collateralised Commodity
Murabahah-i (CCM-i) as a new instrument for its Treasury use and is
pleased to be the first Islamic financial institution to adopt such
instrument in managing its daily money market transactions. The
announcement was made at their Kuantan Branch launching ceremony which
was graced by YAB Dato’ Seri DiRaja Adnan Yaakob, Menteri Besar Pahang.
On a similar note, in its recent announcement, Bank Negara Malaysia (BNM) has recently introduced the Collateralised Murabahah instrument. CCM-i, based on a Commodity Murabahah transaction and backed by a pledge mechanism, was introduced as an alternative solution in addressing the urgent demand of Islamic banks in managing their liquidity. It is a low credit-risk financial instrument for the Islamic interbank money market players under the Bank Negara Malaysia’s Standing Facility guideline; enabling Islamic banks to tap on liquidity by utilising their holdings of tradable sukuks and other acceptable Islamic securities as pledge for their liquidity requirements. (source)
On a similar note, in its recent announcement, Bank Negara Malaysia (BNM) has recently introduced the Collateralised Murabahah instrument. CCM-i, based on a Commodity Murabahah transaction and backed by a pledge mechanism, was introduced as an alternative solution in addressing the urgent demand of Islamic banks in managing their liquidity. It is a low credit-risk financial instrument for the Islamic interbank money market players under the Bank Negara Malaysia’s Standing Facility guideline; enabling Islamic banks to tap on liquidity by utilising their holdings of tradable sukuks and other acceptable Islamic securities as pledge for their liquidity requirements. (source)
Thursday, June 21, 2012
MALAYSIA - FINANCE - Malaysia revises Islamic equity standards
www.reuters.com - (Reuters) - Malaysia's securities commission
is revising its guidelines for equities which qualify for
Islamic investment, in a move that could increase the appeal of
the country's sharia-compliant funds industry to Gulf investors.
Under the previous standards, investment was banned or restricted in companies that were involved in industries deemed to be unethical, such as gambling, alcohol and tobacco.
These restrictions are now being made more stringent, so that a lower level of exposure to those industries is unacceptable for Islamic investment, according to a statement by the securities commission on Monday.
The revised guidelines also include two new financial standards which filter out excessively cash-rich and debt-ridden companies, in order to limit exposure to interest payments and pure monetary speculation, which are unacceptable in Islam. (source)
Under the previous standards, investment was banned or restricted in companies that were involved in industries deemed to be unethical, such as gambling, alcohol and tobacco.
These restrictions are now being made more stringent, so that a lower level of exposure to those industries is unacceptable for Islamic investment, according to a statement by the securities commission on Monday.
The revised guidelines also include two new financial standards which filter out excessively cash-rich and debt-ridden companies, in order to limit exposure to interest payments and pure monetary speculation, which are unacceptable in Islam. (source)
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)
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)
Friday, June 15, 2012
MALAYSIA - TAKAFUL - Malaysia's Contribution To Global Takaful Industry To Increase To US$2.4 Billion
www.bernama.com - KUALA LUMPUR, June 13 (Bernama) -- Malaysia's contribution to the
global Takaful industry is expected to increase to US$2.4 billion this
year from US$1.4 billion in 2011.
Ernst and Young Partner (Assurance) Brandon Bruce Sta Maria said the estimation was based on expectations that the industry's growth trend would be sustained for the next two years.
"Malaysia's market grew 24 per cent to touch a US$1.4 billion contribution last year at an average of US$141 million per operator," he told Bernama on the sidelines of the World Takaful Conference: Asia Leaders' Summit 2012 here today.
For the South East Asian region, Sta Maria expected the contribution to the industry to increase to US$3.4 billion from the US$2.2 billion achieved last year. (source)
Ernst and Young Partner (Assurance) Brandon Bruce Sta Maria said the estimation was based on expectations that the industry's growth trend would be sustained for the next two years.
"Malaysia's market grew 24 per cent to touch a US$1.4 billion contribution last year at an average of US$141 million per operator," he told Bernama on the sidelines of the World Takaful Conference: Asia Leaders' Summit 2012 here today.
For the South East Asian region, Sta Maria expected the contribution to the industry to increase to US$3.4 billion from the US$2.2 billion achieved last year. (source)
Saturday, June 09, 2012
MALAYSIA - PUBLICATIONS - IMF Working Paper 12-151 - What's in it for me ?
www.inf.org
Summary: What
attracts conventional investors to Islamic financial instruments? We
answer this question by comparing Malaysian Islamic and conventional
security prices and their response to macrofinancial factors. Our
analysis suggests that Islamic and conventional bond and equity prices
are driven by common factors. Likewise, especially in recent years,
Islamic banks have responded to economic and financial shocks in the
same way as conventional banks, suggesting that the gap between Islamic
and conventional financial practices is shrinking. (source)
What’s in It for Me? A Primer on Differences between Islamic and Conventional Finance in Malaysia
Krasicka, Olga ; Nowak, Sylwia
IMF Working Papers - June 2012 - 12/151
Friday, June 08, 2012
WORLD - INDEX - Changes Made To Dow Jones Islamic Market Indexes
www.djindexes.com -Changes Follow Regular Annual Review - LONDON (7 June 2012) – Dow Jones Indexes, a leading global index provider, today announced the results of the regular annual review of the Dow Jones Islamic Market Titans 100 Index
and its three subindexes, Dow Jones Islamic Market U.S. Titans 50
Index, Dow Jones Islamic Market Asia/Pacific Titans 25 Index and Dow
Jones Islamic Market Europe Titans 25 Index as well as the Dow Jones Islamic Market Malaysia Titans 25 Index. All changes will be effective after the close of trading on Friday, June 15, 2012.
In the Dow Jones Islamic Market Titans 100 Index and subindex Dow Jones Islamic Market U.S. Titans 50 Index, Baker Hughes Inc., Corning Inc. and Marathon Oil Corp. will be replaced by eBay Inc., Express Scripts Holding Co. and Nike Inc. Cl B. (source)
In the Dow Jones Islamic Market Titans 100 Index and subindex Dow Jones Islamic Market U.S. Titans 50 Index, Baker Hughes Inc., Corning Inc. and Marathon Oil Corp. will be replaced by eBay Inc., Express Scripts Holding Co. and Nike Inc. Cl B. (source)
MALAYSIA - FINANCE - Malaysia c.bank to expand new Islamic facility
www.reuters.com - (Reuters) - Malaysia's central bank will
eventually expand its new Islamic money market funding facility
to allow trades of the instrument between commercial banks,
while introducing longer tenors, the central bank said on
Thursday.
The central bank announced last week that it was launching a
collateralised murabaha facility through which Islamic banks
could obtain funds from the central bank by pledging high
investment grade sukuk as collateral. The new facility aims to
aid Islamic banks' liquidity management.
The central bank told Reuters in an email on Thursday that use of the collateralised murabaha instrument would later be expanded so that banks could trade it between themselves in the interbank market. It did not give a time frame. (source)
The central bank told Reuters in an email on Thursday that use of the collateralised murabaha instrument would later be expanded so that banks could trade it between themselves in the interbank market. It did not give a time frame. (source)
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