Infrastructure Financing through Islamic
Finance in the Islamic Countries
103
project that IAP has invested in is the RM 10 million term financing provided to Perak Transit
Berhad for its working capital requirements.57
4.2.5.3. Capital Markets
Given the size of the capital markets in general and sukuk sector in particular, they play an
important role in financing the infrastructure sector in Malaysia. The key players in the
infrastructure sector are GLCs that receive their equity capital from the government and other
GLICs and then raise funds from capital markets, a large part of which are sukuk. Ahmad
(2017) reports that 61% of the world’s infrastructure sukuk was issued out of Malaysia during
the period 2012 to 3Q2015. Chart 4.2.9 shows that more than 46% of the sukuk issued in
Malaysia was by infrastructure-related entities (transport, storage, communications, energy,
gas and water).
Chart 4.2. 9: Corporate Sukuk Issuer Profile in Malaysia (end of June 2015) (%)
Source: IIFM (2016: 125)
Chart 4.2. 10: Investor Profile of Corporate Sukuk in Malaysia (%)
Source: COMCEC (2018: 90)
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0%
5%
10%
15%
20%
25%
30%
Banking and
Financial Services
Transport,
Storage &
Communications
Energy, Gas and
Water
Industrial Others
28.00%
26.10%
20.10%
18.40%
7.40%
% of total
0% 10% 20% 30% 40% 50% 60%
Domestic commercial, Islamic & investment banks
Foreign commercial & Islamic banks
Insrance Companies
Employees Provident Fund
51%
6%
33%
10%