RAM Ratings: Sarawak’s infrastructure growth to be sukuk funded
KUALA LUMPUR: RAM Ratings expects Sarawak’s infrastructure growth to be mainly funded by Malaysia’s vibrant sukuk market.
It has cumulatively rated more than RM31 billion of bond and sukuk programmes from Sarawak-related issuers since 1993.
Deputy chief operating officer Promod Dass said sukuk has been the preferred funding route for Sarawak-based entities, with the majority from the power sector.
“Notably, Sarawak-based issuers from the port, construction, property, manufacturing, plantation, oil and gas support services, financial services and telecommunication sectors have successfully tapped the sukuk market.
“Infrastructure development in Sarawak is gaining momentum, and Malaysia’s sukuk market will remain a key funding avenue,” he added.
Promod was speaking at a panel session hosted by Capital Markets Malaysia at the 13th World Islamic Economic Forum (13th WIEF) in Kuching on Nov 22.
A statement on his comments was released by RAM Ratings here yesterday.
Promod said the efforts of the Malaysian government and the Securities Commission in building a solid foundation for the sukuk market had benefited many infrastructure issuers, as they were able to access long-term, fixed-rate funds to finance their projects.
“Malaysia is an excellent example of infrastructure development and Islamic finance collaborating successfully within a well-functioning ecosystem,” he added.