Sukuk to Continue Dominant Streak in Malaysia’s Debt Market; Strong Demand for High-Yield Instruments: MARC 

Chief Executive Officer of Malaysian Rating Corp Bhd (MARC), Datuk Jamaludin Nasir, has stated that Sukuk are expected to maintain their dominant role in Malaysia’s debt market owing to a strong appetite for high-yield instruments, as interest rates worldwide are forecast to stay low for 2021.

Why it Matters?

Sukuk issuance worldwide is set to rise in 2021 amidst COVID-19 vaccination programmes and the restart of economic activities. Malaysia-issued Sukuk have also gained momentum with foreign investors, evident by a recent issuance of USD 1.3 billion worth of sustainability Sukuk, which saw a bid-to-cover ratio of 6.4x. Corporate bond and Sukuk issuances for 2021 are forecast to remain between MYR 100 billion and MYR 110 billion, similar to 202...