$170 Billion in Malaysia Pensions Cry Out for More Islamic Bonds
- Sovereign debt should be 50% sukuk: Employees Provident Fund
- More supply would expand yield curve, investor base: Aberdeen
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Malaysia’s biggest pension fund is calling on the government to increase the supply of ringgit Islamic bonds as the manager of $170 billion starts a Shariah-compliant option for savers.
The Employees Provident Fund, the largest buyer of the country’s debt and stocks, said ideally half of sovereign bond sales should be sukuk as it prepares to launch the Islamic plan with an initial 100 billion ringgit ($25 billion) in January. Currently the Shariah-compliant share of issuance is 42 percent.