‘Is­lamic cap­i­tal mart can play big­ger role’

New Straits Times - - Business -

KUALA LUMPUR: With the an­nual global in­fras­truc­ture in­vest­ments of be­tween US$2.65 and US$3.7 tril­lion (RM16.05 tril­lion) as per World Bank study, Is­lamic fi­nance can play a greater role in in­fras­truc­ture fi­nanc­ing via public-pri­vate part­ner­ships (PPP) to fa­cil­i­tate more sus­tain­able de­vel­op­ments.

Se­cu­ri­ties Com­mis­sion (SC) chair­man Tan Sri Ran­jit Ajit Singh said crit­i­cal fac­tor for in­fras­truc­ture fi­nanc­ing is to suc­cess­fully bridge the gap be­tween the de­mand and the sup­ply of cap­i­tal, re­fer­ring to the World Bank’s find­ings that emerg­ing mar­kets and de­vel­op­ing economies face an an­nual in­fras­truc­ture in­vest­ment gap of US$452 bil­lion.

“The SC has long recog­nised the promis­ing po­ten­tial of the Is­lamic cap­i­tal mar­ket as an al­ter­na­tive av­enue for large-scale long-term fundrais­ing.

“In this re­gard, sukuk, given their as­set-based and riskshar­ing na­ture, are par­tic­u­larly apt for in­fras­truc­ture fi­nanc­ing,” he said at a joint con­fer­ence, here, yes­ter­day af­ter an SCWorld Bank Group Con­fer­ence themed “Is­lamic Fi­nance and Public-Pri­vate Part­ner­ships for In­fras­truc­ture De­vel­op­ment”.

The Global In­fras­truc­ture In­vest­ment In­dex 2016 ranked Malaysia as the sec­ond-most at­trac­tive desti­na­tion for in­fras­truc­ture in­vest­ment in Asia, and fifth in the world.

World Bank Group in­fras­truc­ture, guar­an­tees and public-pri­vate part­ner­ships se­nior direc­tor Lau­rence Carter said the group be­lieves that Is­lamic fi­nance has an im­por­tant role to play in ad­dress­ing the de­vel­op­ment chal­lenges fac­ing its client coun­tries.

“The World Bank Group’s in­volve­ment in Is­lamic fi­nance is di­rectly linked to our ob­jec­tives of re­duc­ing poverty, pro­mot­ing fi­nan­cial sec­tor de­vel­op­ment, broad­en­ing fi­nan­cial inclusion, and build­ing fi­nan­cial sec­tor sta­bil­ity and re­silience in client coun­tries,” he said. Farah Adilla

PIC BY YAZIT RAZALI

Se­cu­ri­ties Com­mis­sion chair­man Tan Sri Ran­jit Ajit Singh says it has long recog­nised the promis­ing po­ten­tial of the Is­lamic cap­i­tal mar­ket as an al­ter­na­tive av­enue for large-scale long-term fundrais­ing.

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