RAM Ratings Expects Malaysian Sukuk to Demonstrate Resilience in 2H 2021, Following on from 2Q 2021

The local currency Sukuk market in Malaysia is expected to stay strong in the second half of 2021 (2H 2021), according to RAM Ratings (RAM), despite a challenging first quarter (1Q 2021) and downside risk. Siew Suet Ming, Chief Rating Officer at RAM Rating Services, stated that given the attractive low yields, firms will be encouraged to bring funding plans forward, before interest rates start to normalise along with policy rates in 2022.

Why it Matters?

Chief Executive Officer and Executive Director of Bond Pricing Agency Malaysia, Meor Amri Meor Ayob, noted that the Malaysian Sukuk market remains robust and continues to be the main capital-raising source for significant projects in Malaysia. Whilst credit quality reflects market conditions, the Mal...