94
Chart 4.14: Factors Influencing the Development of Malaysia’s Sukuk Market
Sources: RAM, ISRA
Table 4.6: Recommendations to Improve Demand (Buy Side) – Medium-Term Solutions
Issues and challenges Demand (buy side) opportunities
Greater awareness of impact investing (e.g.
achieving social objectives without
compromising commercial returns) is
required.
SRI is a USD60.0 trillion industry that is still
expanding. The common shared values
between sukuk and SRI can foster greater
linkages between Islamic finance and
conventional SRI investors. Ongoing efforts by
the Islamic finance community to build
awareness and promote a shift in mindset to
consider social impact objectives.
Lack of participation by retail investors
despite a few retail issues under GLCs.
Increase awareness among members of the
public to invest in retail sukuk.
Shortage of liquidity-management
instruments for Islamic banks.
Develop new products or promote innovation
to enable Islamic banks to compete effectively
against their conventional counterparts.
Sources: RAM, ISRA
Table 4.7: Recommendations to Improve Demand (Sell Side) – Medium-Term Solutions
Issues and challenges Supply (sell side) Opportunities
Strengthen value-based intermediation
(VBI) – In July 2017, BNM released
guidelines on Value-based Intermediation:
Strengthening the Roles and Impact of
Islamic Finance
VBI has been identified as the next market
mover for Islamic finance. Similar initiatives
(e.g. peer-to-peer crowd funding) devoted to
achieving social justice will heighten Malaysia’s
appeal in light of the United Nations’
Sustainable Development Goals (SDGs).
Sources: RAM, ISRA