Malaysia Tax Plan Makes Funds Wary of Inflation: Islamic Finance
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Malaysian sukuk investors are designing strategies for 2015 that will profit as a new tax both pushes up inflation and forces central bank rate increases.
Malaysian consumer-price increases will average 4 percent in 2015, the highest in seven years, as a new consumption tax starts in April, according to a Bloomberg survey of 21 economists. One-year interest-rate swaps climbed to a six-year high of 3.87 percent this week, signaling expectations that Bank Negara Malaysia’s policy rate will be raised from 3.25 percent.