Islamic Bonds Issues: The Malaysian Experience

9 Pages Posted: 15 Mar 2011

Date Written: December 9, 2005

Abstract

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.

Keywords: Sukuk, Islamic bonds, Islamic private debt securities

Suggested Citation

Jalil, Abdullaah, Islamic Bonds Issues: The Malaysian Experience (December 9, 2005). Available at SSRN: https://ssrn.com/abstract=1785098 or http://dx.doi.org/10.2139/ssrn.1785098

Abdullaah Jalil (Contact Author)

USIM ( email )

Bandar Baru Nilai
Nilai, Negeri Sembilan 71800
Malaysia

INCEIF ( email )

Kuala Lumpur
Malaysia

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