79
Table 4.3: Malaysia’s Budget Deficits (2014–2017f)
RM billion 2014 2015 2016e 2017f
Government revenue 220.6 219.1 212.6 219.7
Government expenditure 259.1 257.8 252.1 260.8
Budget deficit (38.5) (38.7) (39.5) (41.1)
Source: Ministry of Finance, Malaysia
Due to the faster pace of issuance for Islamic government securities over the last decade, the
total outstanding amount of Islamic government securities has augmented from 11% (RM21.6
billion) of total issuance as at end-2006 to 44% (RM291.4 billion) as at end-June 2017, as
illustrated in Chart 4.5.
Chart 4.5: Malaysia’s Sovereign Sukuk vs Conventional Outstanding ( 2006-June 2017)
0.00
100.00
200.00
300.00
400.00
500.00
600.00
700.00
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 June 2017
RMbillion
Sukuk issuance Conventional issuance
44%
RM662.4
billion
RM198.1
billion
11%
Source: BPAM
Domestic Market – Private Sector Issuance
Malaysia’s economic pump-priming through infrastructure-led projects has been a boon to the
sukuk market, especially for the quasi-government and corporate sectors. Total bond issuance
by quasi-government entities and corporates swelled from RM79.3 billion as at end-2006 to a
record of RM137.7 billion a decade later. The positive momentum carried through to 1H 2017,
when total quasi-government and corporate bond issuance surged 17% y-o-y to RM78.9
billion, with sukuk accounting for 62% of the total, as illustrated by Chart 4.6.