Enhancing Cross Border Connectivity: Venturing into Islamic Finance as a New Source of Infrastructure Financing

Journal of Emerging Economies and Islamic Research, Vol.3, No.3 (2015)

14 Pages Posted: 14 Dec 2015

See all articles by Saadiah Mohamad

Saadiah Mohamad

Universiti Teknologi MARA; University of Oxford - Oxford Centre for Islamic Studies

Omar Salah

Tilburg University; De Brauw Blackstone Westbroek

Mafrukhin Mokhtar

AIF

Sharifah Faigah Syed Alwi

Universiti Teknologi MARA (UiTM) - Arshad Ayub Graduate Business School (AAGBS)

Date Written: August 27, 2015

Abstract

Connectivity within Association of Southeast Asian nation (ASEAN) member countries becomes a central issue in view of the ASEAN Economic Community 2015. However, progress towards ASEAN connectivity especially for infrastructure developments has been limited. One of the problems is the resource mobilization for project financing. In recent years, rising demand for Islamic securities among global investors in jurisdictions where legal framework and financial infrastructure are well established has made sukuk a cost effective and preferred method of raising finance. It has also attracted liquidity to and has made Malaysia a leading global sukuk issuer and a leading Islamic financial hub. This paper is a case study on how Malaysia has used the Public-private partnership (PPP) for infrastructure development and how this has extended into Islamic financing and further examines how this model can be expanded into other ASEAN member countries in particular the Cambodia, Vietnam, Laos and Myanmar (CVLM) countries where issues of infrastructure financing is critical and need to be quickly resolved in view of an enhanced ASEAN connectivity and the future of an ASEAN community development.

Suggested Citation

Mohamad, Saadiah and Mohamad, Saadiah and Salah, Omar and Mokhtar, Mafrukhin and Syed Alwi, Sharifah Faigah, Enhancing Cross Border Connectivity: Venturing into Islamic Finance as a New Source of Infrastructure Financing (August 27, 2015). Journal of Emerging Economies and Islamic Research, Vol.3, No.3 (2015), Available at SSRN: https://ssrn.com/abstract=2702411

Saadiah Mohamad (Contact Author)

University of Oxford - Oxford Centre for Islamic Studies ( email )

George Street
Oxford, OX1 2AR
United Kingdom

Universiti Teknologi MARA

Faculty of Business and Management
Shah Alam, Selangor 40450
Malaysia

Omar Salah

Tilburg University ( email )

P.O. Box 90153
Tilburg, DC Noord-Brabant 5000 LE
Netherlands

De Brauw Blackstone Westbroek ( email )

Tripolis
Burgerweeshuispad 301
1076 HR Amsterdam
Netherlands

Mafrukhin Mokhtar

AIF ( email )

Kuala Lumpur
Malaysia

Sharifah Faigah Syed Alwi

Universiti Teknologi MARA (UiTM) - Arshad Ayub Graduate Business School (AAGBS) ( email )

40450 Shah Alam
Selangor Darul Ehsan
Malaysia

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