Meagre Economic Growth to Pose Potential Hit to Sukuk Issuance

According to Chief Economist of Malaysia Rating Corp Bhd (MARC), Nor Zahidi Alias, poor economic growth conditions are likely to drag down overall Sukuk Issuance in Malaysia, but the prevailing low interest-rate environment coupled with accommodative policies by Bank Negara Malaysia (BNM) may negate the impact on Sukuk Issuance to an extent.

The downside risk will be largely dependent on the nature of the spread of the Coronavirus, where continued lockdown periods across global economies and outbreaks at unmanageable levels could be damaging.

The global head of Islamic finance at Fitch Ratings Inc, Bashar Al Natoor, stated that the Coronavirus pandemic is negatively affecting prima...