Malaysian finance pursues a religious experience

Malaysia may not appear at first glance to be the most logical hub for an Islamic financial centre, when you consider Indonesia and, of course, the Middle East but it boasts the world’s largest market in sukuk, or Islamic debt.

Furthermore, the Malaysian government has been determined for several years to demonstrate it can deliver fixed-income sophistication with religion. 

At the behest of the regulators, Malaysia’s sukuk market has grown, particularly of late. Muhyiddin Yassin, deputy prime minister, said at the 10th Kuala Lumpur Islamic Finance Forum 2013 in September that the country’s Islamic debt surged from $1.5 billion in 2001 to more than ...