Malaysia, with its well-developed market for Islamic investment products, is a reasonable alternative for Indonesian companies to issue sharia-based bonds, or sukuk, Malaysia's central banker has said.
Visiting Dato' Mohd Razif Abdul Kadir, Bank Negara Malaysia deputy governor, said that Indonesian firms should take advantage of the high demand for sukuk worldwide.
"The demand for sukuk is ten times the supply; why not take advantage of that very high demand?" he was quoted Tuesday by Ebglish daily The Jakarta Post as saying.
"As Indonesia's sukuk market is still evolving, we offer Malaysia as a gateway to Indonesian corporations to issue their sukuk in our market," he said.
According to Datuk Kris Azman Abdullah, an executive director at Securities Commission Malaysia, the advantages an Indonesian firm can get from issuing such bonds in Malaysia include low cost, tax holidays and a more efficient regulatory approval process that enables it to receive funding a month after issuing a bond.
"Indonesians traditionally seek an alternative source of financing in Singapore. So now, with these advantages, we offer you to do it in Malaysia as well," said Azman.
So far only 20 companies here have issued sukuk, worth 3 trillion rupiah (around 326 million US dollars). Malaysia, meanwhile, controls an 80 percent share of the global sukuk market, or around 11.5 billion dollars.
Source: Xinhua
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