Islamic finance key to Sarawak's infrastructure growth, says RAM Ratings

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KUALA LUMPUR (Nov 28): The infrastructure growth in Sarawak is expected to be mainly funded by Malaysia's vibrant sukuk market, according to RAM Rating Services Bhd. 

In a statement today, RAM Ratings said sukuk has been the preferred funding route for Sarawak-based entities, with majority from the power sector.  

Besides that, Sarawak-based issuers from the port, construction, property, manufacturing, plantation, oil and gas support services, financial services and telecommunication sectors have been noted to have successfully tapped into the sukuk market as well, RAM Ratings added. 

In a panel session during the 13th World Islamic Economic Forum in Kuching last week, RAM Ratings deputy chief executive officer Promod Dass said Malaysia's sukuk market will remain a key funding avenue for the infrastructure development in Sarawak, as it gains momentum. 

He applauded the Malaysian government and Securities Commission's efforts in building a solid foundation for the sukuk market, which has enabled infrastructure issuers to access long-term, fixed rate funds to finance their projects.

"Malaysia is an excellent example of infrastructure development and Islamic finance collaborating successfully within a well-functioning ecosystem," Dass said.