MALAYSIA has topped as the largest sukuk market in 2020 by issuing more than 45% of the world’s outstanding amount or approximately US$258 billion (RM1.06 trillion). Finance Minister Datuk Seri Utama Tengku Zafrul Tengku Abdul Aziz (picture) quoting report by the Malaysia International Islamic Finance Centre (MIIFC) said most of the issuances are tied to the principles of Sustainable and Responsible Investments (SRIs). “From funding renewable-energy infrastructures such as solar and hydro, to supporting social purposes, such as micro-financing and education, Malaysian sukuk issuers have acquired an appetite for such ventures, reflecting an increasingly strong commitment towards a sustainable future through Islamic financing products,” he noted in his virtual address during the 16th Kuala Lumpur Islamic Finance Forum yesterday. The minister added that the data from the stock market and fund management industry also proved that Islamic finance has shown unrelenting resiliency and has continued to attract investors during these uncertain times. He also noted that the Shariah indices outperformed conventional indices for two consecutive years. “This has resulted in more demand for Shariah-based investments, with total Islamic assets under management growing from 22% of overall assets in 2017 to 24% by end of 2020 with a total value of RM217 billion,” he said.

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The Malaysian Reserve