News

Malaysia continues tax break for sukuk issuance

Islamic_bankingMalaysia will prolong tax breaks for additional expenditure incurred when issuing Islamic bonds, or sukuks, in addition to retail bonds. The measure was announced by Malaysia’s finance minister, Lim Guan Eng, for the 2019 Budget, which was presented to parliament on November 2, 2018. The budget was a first for the Pakatan Harapan, or “Alliance of Hope”, government. The three-year extension to the bond tax breaks will take effect from the new year “to promote Malaysia as the hub and pioneer of the bond and sukuk markets.” The finance minister also announced that a Special Committee on Islamic Finance will also be set up to boost these efforts. It will be led by the Ministry of Finance. According to the budget’s forecasts, the fiscal deficit is set to widen to 3.7% of gross domestic product (GDP) this year. The previous administration had a target of 2.8%. The World Bank Group representative to Malaysia and country manager, Dr Firas Raad, said: “This year’s budget required a careful balancing act between safeguarding growth, sustaining private sector confidence, promoting fiscal responsibility, managing debt sustainability and protecting the vulnerable.” He also highlighted the positives in the budget, including a push for stronger governance and fiscal responsibility and transparency, amongst other things. ©2018 funds global asia

Executive Interviews

Interview: Asia’s sweet spots

Jul 05, 2019

As the US-China trade war ramps up with a hike in levies, Tai Hui, chief market strategist for Asia-Pacific at JP Morgan Asset Management, tells Romil Patel where he identifies investment value.

Interview: Money needs a place to go

Mar 11, 2019

Peng Fei, chief investment officer at Wanwei Asset Management, tells Romil Patel about allocating capital across risk factors when asset performance is uncertain and unpredictable.

Roundtables

ESG roundtable: Are the ESG stars aligning across Asia?

Jul 05, 2019

Our panel of experts discusses driving higher ESG asset allocation in Asia, growing calls to address the global climate crisis and the importance of governance. Chaired by Romil Patel in Hong Kong.

Singapore roundtable: A money magnet

Mar 11, 2019

Our panel discussed why the Singapore Variable Capital Company makes them bullish, what gives the onshore jurisdiction an offshore feel and “blood on the streets” from China’s slowdown. Chaired by Romil Patel in Singapore.