RAM: Islamic finance key to Sarawak’s infrastructure growth

RAM Ratings expects Sarawak’s infrastructure growth to be mainly funded by Malaysia’s vibrant sukuk market.

Since 1993, RAM has cumulatively rated more than RM31 billion of bond and sukuk programmes from Sarawak-related issuers.

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 & 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,” remarked Promod Dass, deputy CEO of RAM Ratings, during a panel session hosted by Capital Markets Malaysia at the 13th World Islamic Economic Forum last week.

Promod also highlighted that 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,” added Promod.