BUSINESS

GOVT TO UNVEIL NEW DIMENSION OF SUKUK ISSUANCE VIA 'WAKALAH BIL- KHADAMAT' STRUCTURE - PM ANWAR 

28/05/2024 12:21 PM

KUALA LUMPUR, May 28 (Bernama) -- The government is set to introduce a new dimension to its sukuk issuance through the 'wakalah bil-khadamat’ structure, as part of Malaysia’s ongoing efforts to bolster the investment ecosystem in the country, Prime Minister Datuk Seri Anwar Ibrahim announced.

"We plan to finalise this sukuk by 2025 as we work to complete all required arrangements and preparations," he said during his keynote address at the Global Forum on Islamic Economics and Finance (GFIEF) today.

Anwar, who also serves as the Finance Minister, highlighted Malaysia's commitment to innovating sukuk structures, particularly to align with climate and energy transition goals, while emphasising sustainability. 

He noted previous innovations such as SRI (socially responsible investing) sukuk ihsan structures and connections to waqf.

Additionally, the Prime Minister disclosed that the Retirement Fund (KWAP) will invest up to RM3 billion in shariah-compliant investments through Dana Pemacu. 

This investment aims to bolster high-growth domestic Malaysian companies and stimulate the venture investment ecosystem, he added.

The Prime Minister also unveiled Malaysia’s first Social Exchange, to be established by the Securities Commission Malaysia (SC), providing a structured platform for private capital participation in projects with positive social outcomes.

“This will benefit entities such as non-governmental organisations (NGOs), social enterprises and state Islamic religious councils,” he said. 

Anwar highlighted the Labuan International Business and Financial Centre (IBFC)’s Islamic Digital Asset Centre (IDAC) initiative, which will digitally raise and invest funds using blockchain technology, introducing Islamic asset-backed tokens and an Islamic digital finance sandbox.

He commended the Islamic banking industry for collectively pledging RM2.67 billion in secured financing facilities through the Halal Development Corporation’s Halal Integrated Platform to support Malaysia’s halal industry development.

He said risk-sharing should define not only consumer products but also guide industry players' creative efforts. 

“In these turbulent times, risk taking is necessary in order that we can surpass the achievements of the past and truly harness the potential ahead of us,” he said.

He encouraged institutions to invest, innovate, integrate, and think big, offering solutions that conventional finance has yet to explore.

“In particular, innovation in the halal sector should be a primary focus to enhance efficiency and transparency across the end-to-end supply chain,” he said.

At the opening of GFIEF, the Prime Minister launched the MIFC Leadership Council (MLC)’s position paper titled ‘Putting the Islam in Islamic Finance’.

Also in attendance were Finance Minister II Datuk Seri Amir Hamzah Azizan, SC executive chairman Datuk Seri Dr Awang Adek Hussin, MIFC Leadership Council chairman Tan Sri Azman Mokhtar and Bank Negara Malaysia Governor Datuk Abdul Rasheed Ghaffour.

-- BERNAMA


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