Sukuk in Malaysia : evolution, performance and potential /
Sukuk or Islamic investment securitization certificate, also known as Islamic bond, are widely used in meeting the capital needs of the government and corporate sectors. Sukuk seriously have been used in the global financial system since the past three decades. Sukuk financing has taken shape in man...
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| Main Author: | |
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| Format: | Thesis |
| Language: | English |
| Published: |
Kuala Lumpur :
Kulliyyah of Economics and Management Sciences, International Islamic University Malaysia,
2011
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| Subjects: | |
| Online Access: | http://studentrepo.iium.edu.my/handle/123456789/3456 |
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| Summary: | Sukuk or Islamic investment securitization certificate, also known as Islamic bond, are widely used in meeting the capital needs of the government and corporate sectors. Sukuk seriously have been used in the global financial system since the past three decades. Sukuk financing has taken shape in many countries globally. Billions of dollars are channeled through Sukuk issuances to cater to the capital needs for multiple projects in Malaysia, either by the government or private corporations. Malaysia and a few other centers, like Bahrain and Qatar, play important roles as global players in this niche area. Sukuk are getting more vivacious with many new instruments coming into the market continuously. The corporate sukuk have grown more rapidly since the beginning of 2000 in Malaysia, with many new structures inheriting the market. The aggressive growth of corporate sukuk is attributed to government incentives, liberal policies, and creation of a better environment which has accelerated bond market growth. The sukuk market has grown cordially with the conventional one. It has grown parallel to the wide-ranging and dynamic bond market developments in Malaysia as predetermined in the Financial Market and Capital Market Master Plan (2001 to 2010). The sukuk not only provide an alternative financing mechanism for muslims but also work as substitute instruments in the market. They complement conventional bond, equity and bank loans in diversifying risk and creating financial market steadiness. The present research aims to examine what makes Malaysia as an epicenter in Sukuk market internationally. A thorough study was conducted on various aspects that give impetus to the subject-matter based on the title of the research “Islamic Bond in Malaysia: Evolution, Performance and Potential”. The research is divided into three parts and its findings contribute to the intentions of the research. The initial part of the analysis is on the evolution of Islamic bonds in Malaysia. It also looks at the policies and regulations, and how the advancement of financial market infrastructure contributed holistically in the tremendous development of sukuk market in Malaysia until it was recognized as leading global player. The second part of the analysis concentrates on whether the Islamic bond market development has made any contributions to the real economic growth of Malaysia. Quarterly Time series data (quarter I 1996 to quarter IV 2007) were used in the empirical analysis, where the VAR Granger Causality Test was applied. Data were extracted from the Malaysian national Bank's (BNM) monthly and quarterly bulletins. The outcome of the analysis shows that there is no significant relationship between the growth of sukuk market and the real economic growth of Malaysia. This could be because the volume of funds raised in the capital markets during that was not sufficient. The final part of the research presents the opinions from experts in sukuk from various organizations and institutions inside and outside Malaysia. Data were collected by means of a survey using questionnaires on various subjects concerning the “Potential of Sukuk Issues in Malaysia”. SPSS version 12.0 was used to analyze the data. Descriptive statistics and statistical inference tests are employed. On average the results of both the descriptive and inferential analyses show that the perceptions of the respondents is favorable to Sukuk. |
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| Item Description: | Abstracts in English and Arabic. "A dissertation submitted in fulfilmnet of the requirement for the degree of Doctor of Philosophy in Economics."--On t.p. |
| Physical Description: | xxi, 346 leaves : ill. ; 30cm. |
| Bibliography: | Includes bibliographical refrences (leaves 311-323). |