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ket. The Net Asset value of Shari’ah based unit trust fund continues to increase amid the global financial crisis to RM19.71 billion in June 2009 compared to RM 17.19 billion in December 2008.
To further promote the growth of the na- tion’s Islamic Capital Markets, Bursa Malay- sia continued its drive in promoting diversifi- cation in investment products by introducing alternative investment asset classes. The introduction of a Real Estate Investment Trust (REITs) regime in 2005 enabled real estate and property owners to monetize their investments by tapping into the Malay- sian Capital Market whilst also providing a new investment class to the investors. The first REIT was successfully listed on Bursa Malaysia in August 2005.
Raja Teh Maimunah is the Global
Head of Islamic Markets of Bursa Ma- laysia and has over 18 years of bank- ing experience focusing on Investment Banking and Islamic Finance. Prior to joining Bursa Malaysia, Raja Teh was the Chief Corporate Officer and Head of International Business of Kuwait Fi- nance House (Malaysia). Prior to that she was a Director at Unicorn Invest- ment Bank of Bahrain.
She also served at RHB Investment Bank (then RHB Sakura Merchant Bank) where she was responsible for the establishment of the Investment Banking division and CIMB Investment Bank (then Commerce International Merchant Bank) where she covered debt and equity origination and equity sales. She had also served at Pengu- rusan Danaharta Berhad (Malaysia’s national asset management agency tasked to restructure the banking sec- tor following the Asian financial crisis) and her early professional years at KPMG Peat Marwick Consultants. She holds an LLB (Hons) Degree from The University of East London.
Raja Teh is also the Advisor on Islamic Finance and Banking of the World Is- lamic Economic Forum (WIEF) Founda- tion.
The Net Asset value of Shari’ah based unit trust fund continues to increase amid the global financial crisis to RM19.71 billion in June 2009 compared to RM 17.19 billion in December 2008.
Following therefrom, an Islamic REITs regime was introduced by the SC which marked the introduction of world’s first listed Islamic RE- ITs framework. As a result, Bursa Malaysia today hosts three listed Islamic REITs out of total of 13 listed REITs on the Exchange covering property assets in healthcare, plan- tation and commercial sectors. The current cautious investment environment seems to favour listed REITs as investors seek ‘safer’ and ‘defensive’ investments thus providing an avenue for real estate players to raise funds against their property assets in an otherwise challenging market environment.
The Islamic Capital Markets continuous to grow with demand increasing for new invest- ment products leading to the introduction of Exchange Traded Funds and a consequently a Shari’ah compliant ETF ( Islamic ETF “i- ETF”). i-ETFs provide greater investment di- versification which is more cost effective for investors. The first Malaysian Islamic ETF; MyETF Dow Jones Islamic Market Malaysia Titans 25 is the first Shari’ah compliant ETF introduced in Asia.
Another notable milestone on the develop- ment of the Islamic Capital Markets is sukuk origination. Malaysia has the largest sukuk origination market with 60% of global out- standing sukuk originating from Malaysia. To further promote this segment, Bursa Malaysia introduced a sukuk listing exempt regime in 2008. In an exempt regime, su- kuk or debt securities are listed on the Ex- change is not quoted or traded on the Ex- change. Trades continue to be undertaken in the OTC market.This regime is specially catered for issuers who intend to list its su- kuk or debt securities on the Exchange for
50 GlobalIslamic Finance June 2010
the listing status and profiling purpose. The listing of sukuk offers institutions or high net worth investors enhanced transparency and governance. The listing is made available to domestic or global Sukuk denominated in any currency. In August this year, the Ex- change was accorded a double first listing of Sukuk and debt securities by PETRONAS (USD1.5billion global sukuk Al-Ijara) and Cagamas (all outstanding sukuk of RM4.5 billion).
In Malaysia’s attempt to further enhance the Islamic banking industry, a national project was undertaken combining efforts of the regulators, Islamic FIs, crude palm oil (CPO) producers and various palm oil associations in which Bursa Malaysia was entrusted to develop a regulated commodity trading platform specifically dedicated to facilitate Islamic liquidity management and financing by Islamic banks using Shari’ah contracts of Murabahah , Tawarruq and Musawammah. The platform; Bursa Suq Al-Sila’ (BSAS) was successfully launched in August 2009 pro- viding industry players an avenue to under- take multi commodity and multi currency trades which Shari’ah compliant. The plat- form runs on a hybrid system allowing par- ticipants to opt between the traditional voice broking system or the faster fully automated web-based electronic exchange system.
Bursa Malaysia hosts 848 Shari’ah compli- ant listed equities comprising 88% of the total listed companies with a market capi- talization of RM 521.24 billion.
This initiative was undertaken to address is- sues of ‘rogue’ trades, pricing manipulation in the physical markets and leakages by re- quiring participants to be first admitted as members before being able to trade through the platform. The introduction of commodi- ties to be offered undergoes strict Shari’ah review requiring approval of the SAC prior to being admitted on the list of ‘approved’ com- modities. To ensure strict compliant to Glo- bal Shari’ah standards, BSAS replicates a physical market where commodity or goods supplied in the transactions are deliverable.
Going forward, the Exchange continues to enhance the existing services and prod- ucts specification in meeting the needs of investors while maintaining strict guidance to Shari’ah Standards. From the exchange perspectives, the diversification of Shari’ah opinions with regards to Islamic Finance has allowed rooms for further innovation and de- velopment. Bursa Malaysia look forwards for further cooperation and ventures to further develop the Global Islamic Capital Market through introduction of more structured in- struments via the Exchange.
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