The Indonesian Chamber of Commerce and Industry (Kadin Indonesia) has forecast that the domestic economy will see positive growth in 2021. This is in line with the Government of Indonesia’s projections for economic growth of 4.3%-5.5% in 2021, much higher than the 2% contraction witnessed in 2020. This forecast is based on an increase in multiple indicators such as the manufacturing and retail sales indices, cement and electricity consumption, and imports of raw materials and cap...

The Indonesian Government has opened the offering period for Retail Cash Waqf Linked Sukuk (CWLS) series SWR002 which will run from the 9th of April 2021 to the 3rd of June 2021, according to a statement issued by Indonesia’s Ministry of Finance, via the Directorate General of Financing and Risk Management (DJPPR).  Why it Matters?  The issuance of SWR002 is a form of Government support of the National Movement for Cash Waqf in order to help the development of social investment and productive Waqf in Indonesia. Through SWR002, the Government ai...

Insight into Corporate Governance in Islamic Finance: A Systematic Review of LiteratureIslam, Islamic banking, Shariah, Shariah compliant, Zakat

Alliance Islamic Bank (AIB) has announced its intention to provide MYR 100 million in financing to Halal small and medium enterprises (SMEs) in Malaysia who are looking to achieve Halal certification. The announcement was made on the 8th of April 2021 during the signing of a memorandum of understanding with eJazmine, Fusionex International and the International Institute for Halal Research (INHART), in order to strengthen AIB’s Halal in One programme for businesses.   Why it Matters?  The strategic partne...

Capital Intelligence (CI) has affirmed Qatar Islamic Bank’s (QIB) long-term foreign currency and short-term foreign currency ratings at ‘A+’ and ‘A1’ respectively, with a Stable Outlook. Ratings Rationale  QIB’s robust franchise and market position as the largest Islamic bank in Qatar, as well as its favourable liquidity and funding profile contributed to the ratings affirmation. Liquidity is largely funded by customer deposits, which are mostly diversified and stable retail deposits, with a low dependence on forei...

The fourth International Conference on Islamic Finance (ICIF) was held from the 4th of April 2021 to the 6th of April 2021, by the Center for Islamic Economics and Finance (CIEF) at the College of Islamic Studies (CIS), Hamad Bin Khalifa University (HBKU) in Qatar, supported by the Qatar Financial Centre (QFC). Why it Matters?  The conference was a platform for discourse surrounding opportunities and barriers for sustainable economic development under the ‘new normal’, which has advan...

The Indonesia Stock Exchange (IDX) announced that it will be launching a new Shariah (Islamic) index on the 29th of April 2021. This new index is to consist of 17 Shariah-compliant State-Owned Enterprises (BUMN) stocks, the best in terms of both market size and liquidity. Why it Matters?  The IDX is of the hope that the rising number of new Islamic-themed indices will increase the market share and growth of new investors; it targets a new investor growth rate of 30% annually. According to the IDX’s, it is next set to&nb...

In a statement issued on the 8th of April 2021, the Malaysian Takaful Association (MTA) has announced that the country’s Takaful industry remained resilient in 2020, despite the sector being impacted by the COVID-19 pandemic. New business contribution for all family Takaful certificates increased by 7% to MYR 6.59 billion in 2020 from MYR 6.16 billion in 2019, while new Takaful protection value increased by 21.4% to MYR 461.7 billion in 2020 from MYR 380.2 billion in 2019.  Why it Matters?  The Malaysian Takaful industry has shown&nbs...

Pulau Indah Power Plant (PIPP) has signed on an MYR 2.7 billion Shariah-compliant Commodity Murabahah Term Financing-I facility with Bank Pembangunan Malaysia (BPMB), also known as Malaysia Development Bank, according to local media reports. This facility is co-financed with the support of Maybank Islamic and United Overseas Bank (Malaysia). The funds will go towards the construction of PIPP’s power plant in Selangor, Malaysia.  Why it Matters? The 1,200 mega-watt (MW) combined cycle gas turbine powe...

At the Inside Asian Series' Media Roundtable, Moody's Investors Service (Moody’s) stated that Malaysia’s long-term growth potential over 2021-2024 remains stronger than its peers amongst the A2 to BAA1 group. Malaysia is rated A3 with a Stable Outlook. Why it Matters?  According to Sovereign Risk Group Vice President Christian Fang, Malaysia's economic diversity and complexity is a key contributor to this level of anticipated growth. In addition, Fang stated that Malays...