Islamic Capital Market

The Malaysian Islamic capital market has experienced phenomenal growth and raised the bar globally for product innovation and financial intermediation. This market comprises the Islamic equity sector and fixed income. As at end of 2014, the total size of the ICM stood at US$ (RM1.5 trillion) accounting for 57% of the total market capitalisation in Malaysia and represents a 10-year CAGR of 11.3%.

As a marketplace for global sukuk, Malaysia issued US$77.9 billion or 66% of the total global sukuk that was issued for the year 2014. In addition 58% of the total sukuk outstanding globally is domiciled in Malaysia, with a value of US$172.8 billion. Malaysia stands out as the only sukuk market with global outstanding above US$100 billion.

On Bursa Malaysia, the national exchange, more than 70% of the stocks are classified as Shariah compliant by the Shariah Advisory Council of SC. Malaysia has a large Islamic equity market and is home to 188 unit trust funds across asset classes. This provides the drive for continuous development of the country's Islamic fund management industry.

Apart from size, Malaysia's Islamic capital market is also a proponent of innovation and sophistication. To fulfil market demand for diversification strategies, market players have structured innovative investable products such as Malaysia's first Islamic real estate investment trust (i-REIT) and the first Islamic stapled REIT, Asia's first Islamic exchange-traded fund (i-ETF) and Asia's first exchange-traded sukuk.

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