IslamicFinance.de

After achieving a revenue growth of 50% at the end of October 2012 compared with the same period last year, Great Eastern Takaful Sdn Bhd (GETSB) is convinced it will reach a 60% to 70% growth in revenue till hte end of the year. The focus of the company will be its single contribution business as well as its regular contribution businesses. Currently, GETSB has a share of 4% of the local takaful market. Apart from the growth in revenue, an increase in the number of agents from the current 5,000 to 6,500 by 2013 is expected.

Just as HSBC Holdings announced it would shrink its Islamic banking operations in a number of countries, the National Bank of Abu Dhabi made plans to increase the contribution of its Shariah-compliant operations three times over the next eight years. Thus, it becomes clear that HSBC's move is nothing but a sign of its own priorities. While it is set to continue its operations mainly in Malaysia and Saudi Arabia with a limited presence in Indonesia, local banks have the opportunity to step in for it.

According to a report by KFH-Research, the Sukuk market in October demonstrated a month-on-month decline in terms of issuance of 24.5% to $8.8 billion. However, compared to last year, these figures show an increase of 61.3%. Sukuk issuance in the first ten months of 2012 totaled $112 billion, which is 59.4% higher than the corresponding period last year. It is even already 31.5% higher than the overall issuance in 2011. The expectations for the current year are for the issuance to reach $130 billion.

An Islamic Corporate Social Responsibility (i-CSR) General Practice Framework for Islamic institutions is being developed by researchers at the Accounting Research Institute (ARI) of Universiti Teknologi Mara (UiTM). The framework aims to provide suitable guidance for Islamic institutions in comparison with mainstream CSR which is based on Western practices. The development of the i-CSR framework is part of and the ultimate goal of a research project under the Islamic finance and muamalat domain.

Sukuk sells as high as RM5.3bil are planned by the Finance Ministry aiminig to help the nation’s loss-making carrier buy new aircraft. The sukuk will be under a 20-year programme. Turus Pesawat Sdn Bhd will be responsible for selling the notes, starting marketing this week. The government will purchase six Airbus A380s and two A330s worth RM5.3bil for Malaysian Airlines (MAS). By expanding its fleet, MAS hopes to win back business from AirAsia Bhd.

A new draft of the guidelines on capital adequacy for Islamic banks and the risk management of takaful were released by the Islamic Financial Services Board (IFSB). The IFSB is responsible for global guidelines for Islamic finance, despite the fact that national financial regulators determine the way guidelines are implemented. The initial guidelines on capital adequacy were released in December 2005 and were based on Basel II standards. The new stricter Basel III made amendments to the guidelines necessary.

the new Chairman of the Securities Commission of Malaysia - Ranjit Ajit Singh - said he wanted to see the emergence of an internationalized single Association of South East Asian Nations (ASEAN) asset class which would be able to compete with other major regional or global asset classes. He further added that internationalization of the Malaysian capital market as well as of ASEAN as a single asset class is necessary. The capital markets of all the member countries will profit from better and wider access due to success of ASEAN as a single asset class on the global stage.

Read more on: http://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentid=20...

Ahmad Rizlan was apoointed as the new CEO of Etiqa Takaful Bhd by Etiqa Insurance & Takaful. The new CEO has to report to the CEO of Etiqa Insurance & Takaful since the latter is responsible for the entire insurance and takaful group. Rizlan will be in charge of leading the takaful business in Etiqa including the performance of Etiqa Takaful here and regionally.

Read more on: http://www.thesundaily.my/news/529859

Islamic Financial Services Board (IFSB) intends to make a revision of its capital adequacy guidelines for Islamic financial institutions. The draft for industry feedback is to be released in November. Although IFSB determines the global guidelines for Islamic finance, national financial regulators have the final say regarding how much capital banks must maintain and in what form. The revision is necessary due to the change from Basel II standards to the stricter Basel III standards.

Read more on: http://thepeninsulaqatar.com/latest-news/212596-ifsb-to-revise-capital-a...

The plans of the Islamic Financial Services Board (IFSB) are directed towards revising its capital adequacy guidelines for Islamic financial institutions. The draft is expected to be issued in November in order to receive industry feedback. While the IFSB is responsible for the global guidelines for Islamic finance, national financial regulators determine how much capital banks must maintain and in what form. The original guidelines on capital adequacy were released by the IFSB in December 2005. At that time, they were based on Basel II standards. However, now stricter Basel III standards are used which require corresponding changes in the guidelines.

Read more on: http://www.gulf-times.com/site/topics/article.asp?cu_no=2&item_no=540592...

TH Plantations Bhd (THP) has made a sukuk murabahah programme worth up to RM1bil in nominal value. The establishment is made together with the Pilgrimage Fund Board. THP made known to Bursa Malaysia that RM200mil of sukuk have been issued as part of the programme. The tenure of the sukuk is up to 15 years with a maturity date Oct 29, 2027.

Read more on: http://biz.thestar.com.my/news/story.asp?file=/2012/10/31/business/12250...

According to an announcement by the Kuala Lumpur Islamic Financial Forum (KLIFF), Al Rajhi Bank is awarded The Most Outstanding Islamic Finance Product for its Al Rajhi Collateralised Commodity Murabahah-i (CCM-i). The Islamic Finance Awards 2012 ceremony took place in conjunction with the 9th Kuala Lumpur Islamic Finance Forum (KLIFF 2012).

Read more on: http://www.bernama.com/bernama/v6/newsindex.php?id=705234

KFH Malaysia has made a calling for better awareness among customers on the topic of Islamic banking. Customers should know that Islamic bank is an alternative financial approach but also that, in some aspects, it has better value propositions. The Islamic finance industry has been functioning for 30 years already. With over 300 Islamic financial institutions worldwide in 75 countries, it is a fast growing financial branch where 100 largest Islamic banks register an annual asset growth rate of 26.7%.

Read more on: http://www.theborneopost.com/2012/10/27/islamic-banking-provides-better-...

The first Islamic arbitration rules in the world were introduced last month by the Kuala Lumpur Regional Centre for Arbitration (KLRCA). They are expected to enable further expansion of Islamic finance with total global assets. The value of the assets is now estimated to lie between US$1.2 trillion (RM3.72 trillion) to US$1.3 trillion (RM4.03 trillion). The new rules concern conventional as well as syariah-compliant commercial transactions and contracts. With the new rules, a complete syariah-compliant process for relevant parties to a dispute is possible.

The RM240 million Sukuk Musyarakah medium-term notes programme of Alloy Properties Sdn Bhd received affirmation on its rating of 'AAIS' with a stable outlook by Malaysia Rating Corp Bhd (MARC). The rating is a reflection of the adequacy of cash flows for the sukuk coming from the three identified payment sources. These include rental income from the company's two buildings.

Read more on: http://www.bernama.com.my/bernama/v6/newsbusiness.php?id=703913

A joint venture between Takaful Ikhlas Sdn Bhd and Islamic Aid Malaysia (IAM) provided the Darul Falah Ummi Aishah Orphanage in Kampung Behor Masjid with a library of 1,000 books in Bahasa Melayu and English. The donation worth RM33,000 by Takaful Ikhlas Sdn Bhd was part of its Orphanage Library programme and was aiming to finance the library and to purchase books and computers and book racks. Thus, the company is fulfilling its corporate social responsibility (CSR).

Read more on: http://www.bernama.com/bernama/v6/newsindex.php?id=703229

The new Chief Executive of International Islamic Liquidity Management Corp (IILM) wasrecently made known by the company. Professor Datuk Rifaat Ahmed Abdel Karim comes to replace Mahmoud Abu Shamma. Before that, Professor Datuk Rifaat served as inaugural Secretary General for both the Accounting & Auditing Organization for Islamic Financial Institutions (AAOIFI) and the Islamic Financial Services Board (IFSB). Moreover, he was involved in the establishment of the IILM in October 2010.

Read more on: http://www.cpifinancial.net/news/post/16361/international-islamic-liquid...

The Islamic banking division of OSK Investment Bank Bhd (OSKIB) is taking action to unlock value in the Islamic finance realm as well as to address the challenges currently faced in the segment. The Islamic banking segment in Malaysia makes up 18% of of the overall banking sector’s RM1.78 trillion total assets as at the end of last year. The measures of OSKIB include shifting of focus on business development into more Islamic capital market activities.

Read more on: http://www.theborneopost.com/2012/10/22/oskib-aims-to-unlock-value-in-is...

In the search for ways to deal with rising operational costs, Malaysia's Islamic banks are ready for consolidation. While in the past Islamic banks would rather not merge mainly because of resistance from powerful shareholders, now the development of megabanks would enable the issuance ground-breaking products just as conventional banks. This is made possible thanks to the rapid growth of Islamic finance - 23.7% of Malaysia's total banking assets belongs to the Islamic financial sector.

Read more on: http://www.thesundaily.my/news/519665

During the first eight months of this year, total sukuk issuance in Malaysia reached RM219.4bil compared with RM120.7bil during the same period in 2011. In 2012, the Islamic capital market showed encouraging performance. Moreover, the sukuk area was able to register a record in total issuance value. The Islamic equity segment was bolstered thanks to Felda Global Ventures Holdings Bhd and IHH Healthcare Bhd. The growth tendency of the Islamic capital market is true not only for Malaysia but worldwide as well.

Read more on: http://biz.thestar.com.my/news/story.asp?file=/2012/10/18/business/12187...