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Sustainability is a way forward.
In this issue, the MIFC newsletter brings you highlights on sustainability initiatives in Malaysia, particularly in the capital market landscape. Sustainable development has been globally recognised as an imperative, with commitments being made to address relevant issues by nations including Malaysia. Accordingly, the availability of finance supported by efficient financial markets would play a crucial role in ensuring that the global sustainable development needs are adequately supported. Bank Negara Malaysia and The Securities Commission Malaysia (SC) have long been cognisant of the need to promulgate and develop sustainable finance as it aligns closely with the underlying principles of Islamic finance. For capital market, SC has established Sustainability and Responsible Investment (SRI) Roadmap and facilitative regulatory framework to support sustainable and responsible investment.

For more information on SRI initiatives in the Malaysian capital market, kindly download the infographic. 

Thank you,
The MIFC Team

Infographic: Sustainable and Responsible Investment (SRI) Initiatives
View Infographic

Growing the sustainability ecosystem

As the second decade of the 21st century drew to a close, there are greater calls for action and policies to address climate change and pressing societal challenges to move towards better, more sustainable and responsible practices. In Malaysia, the financial regulators have long recognised the merits of sustainable finance and investments, given Malaysia’s leadership in Islamic finance. 
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Malaysia: Building resilience and invigorating growth toward achieving Sustainable Development Goals

Islamic finance in Malaysia has reached greater heights domestically as well as globally and has become an integral component of the overall financial system in Malaysia. Malaysia’s endeavor to create a vibrant and dynamic Islamic financial system is anchored on the vision of developing a Shariah compliant system that is capable of serving the diverse and evolving needs of the economy. The foundation nurtured over the years in Malaysia sets the industry on a path toward supporting sustainable economic growth and realising the Sustainable Development Goals. 
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On the crest of the Islamic capital market wave: A Malaysian perspective

Malaysia has built a distinguished track record for innovation in Islamic finance. A key factor to this success lies in the concerted commitment and involvement of policymakers, from regulators to the government, to develop this sector from infancy. The prospects for the Islamic capital market in Malaysia remain highly favorable as several new growth drivers are expected to provide the impetus for the next stage of development. 
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Renewables driving power sukuk issuance, supportive of national green agenda

RAM Ratings in their recent report on Industry Insight: Malaysian Power Sector - Long road to liberalisation, maintains its stable outlook on the Malaysian power sector amid the impending liberalisation of the industry in Peninsular Malaysia. With a five-year average annual issuance of about RM8.4 billion for 2015-2019, the power industry is one of the most active sectors tapping the domestic bond market. Outstanding power bonds and sukuk summed up to some RM65 billion as at end-January 2020, equivalent to about 9% of Malaysia’s total outstanding corporate bonds. 
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Press Releseas

Securities Commission and Bursa Malaysia will set up Regulatory Subsidiary

The Securities Commission Malaysia (SC) and Bursa Malaysia will establish a wholly-owned subsidiary to assume the regulatory functions currently undertaken by Bursa Malaysia (Bursa RegSub) to address perception of potential conflicts of interest between its regulatory functions and commercial objectives. The SC and Bursa Malaysia will review and finalise the implementation details which is expected to be operational by the end of 2020. 
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Fitch Ratings: Sukuk issuance rose in 2019 as diversification continues

Global sukuk issuance rose 6% in 2019 as the range of issuers and investors broadened, although supply is still concentrated geographically. Long-standing structural impediments to growth remain although, as more corporate tap the sukuk market, potentially including those with weaker credit profiles, legal precedents could eventually be set clarifying creditor treatment in a default.
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The global Islamic financial market: trends, prospects and challenges

The IFSI Stability Report 2019 reconfirmed the continued predominance of Islamic banks’ share in the global Islamic finance industry, amounting to 71.7 per cent share in 2019, with USD1571.3 billion total value of banking assets. There have been a number of recent advancements in light of key challenges in the two major markets of the Islamic financial industry, that is the Islamic banking market and the sukuk market, which also offer interesting new prospects and potential ways forward for the industry.
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Islamic Finance Library
Islamic Finance Dashboard
Calendar of Events
Islamic Finance Public Programme
Date: 26 March 2020
Venue: Kuala Lumpur

For more information, please click here.
Other News
  1. Bank Islam aims to boost green financing by RM800m
  2. Malaysia aims for halal Olympic gold
  3. COVID-19 coronavirus outbreak prompts Malaysian banks to offer deferment of loans repayment
  4. Maybank Islamic to arrange Gulf sukuk, opens Dubai branch 
  5. Takaful Malaysia's Takaful myClick MozzCare provides coverage for Covid-19 
  6. Bangladesh: Standard, NRB Global to become Islamic banks
  7. Turkey’s Islamic banks outperform overall banking sector in 2019
  8. UAE: Islamic banks market share in 2019 lowest in five years
  9. Philippines: Banks express interest to set up Islamic unit
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