Malaysia’s Sukuk Market Estimated at Between MYR 60-70 Billion: Ram Ratings Services

RAM Ratings Services (RAM) expects Sukuk issuances in Malaysia to come in at between MYR 60-70 billion for 2021. Ruslena Ramli, Head of Islamic Finance at RAM stated that this was attributable to slower economic growth amidst uncertainty caused by COVID-19, which has caused corporates to re-look at future growth prospects post-pandemic.

According to RAM’s forecasts, the issuance of private debt securities (PDS), which includes quasi-government and corporate bond issuances, is anticipated at between MYR 100-110 billion in 2021. Of this, Sukuk issuances are estimate based on a five-year average share of Sukuk issuances to total PDS issuances being 62%.

Ramli noted that total PDS at the end of 2020 stood at MYR 104.6 billion, of which Sukuk comprised MYR 77 billi...