MARC: Sukuk will remain dominant in Malaysian debt market

Sukuk (Islamic bonds) are expected to continue to play a dominant role in Malaysia’s debt market due to strong appetite for higher-yielding instruments as global interest rates are expected to remain low in 2021, said Malaysian Rating Corp Bhd (MARC) group CEO Datuk Jamaludin Nasir.

The value of corporate bond and sukuk issuances this year is estimated to remain between RM100 billion and RM110 billion, similar to that in the previous year, based on the narrative of rebuilding the nation in these challenging times, he said, adding that this is backed by firmer crude oil prices, accommodative policies for Islamic finance, and expectations for economic recovery.

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