The Malaysian bond market will remain one of the world’s most advanced project financing markets in the world: Financial Management Assignment, MMU, Malaysiax

The Malaysian bond market will remain one of the world’s most advanced project financing markets in the world. This is due to the existing ecosystems whereby regulators, issuers, and subscribers work efficiently with each other. “The Malaysian bond market is resilient.

In fact, we have already seen an increase of 45 percent in the supply of bonds in the first half of this year, in comparison to the same period last year. Year to date, we are already seeing an issuance of RM51.6 billion as of July 2017, when the total issuance of the whole of 2016 was at RM77.5 billion,” she said.

“The market is quite flushed with liquidity and we are expecting that there will be between RM80 billion to RM90 billion of bond issuances for the full year 2017, thus surpassing that of 2016,” Masliza said.

Task:

i) Generally discuss the bond market in Malaysia.  Moody’s, Fitch’s, and Standard and Poor’s are three prominent bond rating agencies in the contemporary world.

ii) Identify and briefly elaborate on the task of 2 Malaysia Rating Agencies.

iii) Malaysian bond market generally can be subdivided into conventional and Islamic bonds. Identify and provide 1 example for each of the conventional and Islamic bonds in the Malaysia bond market. Elaboration on each example is essential.

iv)What are the major differences between conventional and Islamic bonds in Malaysia?

v) Discuss the reason(s) that made Malaysia become one of the most successful Islamic Bond markets in the World.

vi) Recommendations for further improvement (development) for the Malaysian bond market.

Answer

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