Sukuks to be major part of ASEAN assets

Traders at the Philippines Stock Exchange, which is supposed to join the ASEAN Trading Link in the coming years

With three ASEAN stock exchanges already connected and four others to follow over the coming years to represent the ASEAN Trading Link, bourses are now working to built up their own ASEAN asset class that can compete with other major regional or global asset classes.

The remark was made by Ranjit Ajit Singh, the new Chairman of the Securities Commission of Malaysia, during the 17th Malaysian Capital Market Summit held in Kuala Lumpur on October 29.

He said that “the world will see an exciting new asset class in ASEAN,” whose success on the global stage “will also translate to better and wider access for the capital markets of each member country.”

Malaysia is one of the main drivers of the new asset class together with the Singapore Stock Exchange and the Stock Exchange of Thailand.

Kuala Lumpur is particularly upbeat about the progress of the Malaysian Capital Market (MCM) as a part of a new integrated ASEAN capital market. Its size, according the latest data of the Securities Commission, grew by 14 per cent from RM2.1 trillion ($700 billion) as at the end of 2011 to RM2.4 trillion at the end of September 2012.

The bond and especially the sukuk market raised RM100 billion up to end of September 2012, surpassing 2011’s record total issuances of RM70 billion. The RM30.2 billion sukuk issued by PLUS Berhad, the national road operator, at the beginning of this year, remains the single largest sukuk to date in the world.

Malaysia currently accounts for 68.5 per cent of global sukuk outstanding. Similarly, Shariah-compliant securities listed on the Bursa Malaysia had a market capitalisation of RM883.8 billion as of the end of September 2012, representing 64 per cent of the total market capitalisation on the Malaysian  bourse.

See also our earlier story: New ASEAN Trading Link kicks off

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Traders at the Philippines Stock Exchange, which is supposed to join the ASEAN Trading Link in the coming years

With three ASEAN stock exchanges already connected and four others to follow over the coming years to represent the ASEAN Trading Link, bourses are now working to built up their own ASEAN asset class that can compete with other major regional or global asset classes.

Traders at the Philippines Stock Exchange, which is supposed to join the ASEAN Trading Link in the coming years

With three ASEAN stock exchanges already connected and four others to follow over the coming years to represent the ASEAN Trading Link, bourses are now working to built up their own ASEAN asset class that can compete with other major regional or global asset classes.

The remark was made by Ranjit Ajit Singh, the new Chairman of the Securities Commission of Malaysia, during the 17th Malaysian Capital Market Summit held in Kuala Lumpur on October 29.

He said that “the world will see an exciting new asset class in ASEAN,” whose success on the global stage “will also translate to better and wider access for the capital markets of each member country.”

Malaysia is one of the main drivers of the new asset class together with the Singapore Stock Exchange and the Stock Exchange of Thailand.

Kuala Lumpur is particularly upbeat about the progress of the Malaysian Capital Market (MCM) as a part of a new integrated ASEAN capital market. Its size, according the latest data of the Securities Commission, grew by 14 per cent from RM2.1 trillion ($700 billion) as at the end of 2011 to RM2.4 trillion at the end of September 2012.

The bond and especially the sukuk market raised RM100 billion up to end of September 2012, surpassing 2011’s record total issuances of RM70 billion. The RM30.2 billion sukuk issued by PLUS Berhad, the national road operator, at the beginning of this year, remains the single largest sukuk to date in the world.

Malaysia currently accounts for 68.5 per cent of global sukuk outstanding. Similarly, Shariah-compliant securities listed on the Bursa Malaysia had a market capitalisation of RM883.8 billion as of the end of September 2012, representing 64 per cent of the total market capitalisation on the Malaysian  bourse.

See also our earlier story: New ASEAN Trading Link kicks off

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