Islamic Bonds Issues: The Malaysian Experience
The paper is a review of the Malaysian experience in managing the issuance and development of Islamic bonds market. It was observed that Malaysia has begun with the issuance of loan-based Islamic bonds by the Malaysian government followed by the vast and extensive issuance of sale-based Islamic bo...
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| Main Author: | |
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| Format: | Conference Paper |
| Language: | English |
| Published: |
Asian Academy of Management
2010
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| Subjects: | |
| Online Access: | http://dspace.unimap.edu.my/xmlui/handle/123456789/2889 http://hdl.handle.net/123456789/2889 |
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| Summary: | The paper is a review of the Malaysian experience in managing the issuance and development of Islamic
bonds market. It was observed that Malaysia has begun with the issuance of loan-based Islamic bonds by
the Malaysian government followed by the vast and extensive issuance of sale-based Islamic bonds by both
government and private corporations. However, most of the Malaysian Islamic bonds issued to date have
been based on the principles of Murabahah and Al-Bai’ Bithaman Ajil (BBA) that can hardly obtain the
acceptance and confidence of global investors especially from the Middle-East countries. Hence, the
issuance of Ijarah-based global sovereign and corporate Islamic bonds (Sukuk) took place in 2002. In
general, five key factors have been recognized to develop a more comprehensive Malaysian Islamic bonds
market and accelerate the progress of Malaysia’s venture into the international Islamic financial arena. |
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