Malaysia Urged To Work With Asean To Launch Cross-Border Bonds

KUALA LUMPUR, Sept 29 (Bernama) -- Malaysia should broaden its bond market by tying up with other Asean economies for more cross-border issuances. "The bond market is still fragmented in Malaysia and it should be more integrated with other Asean markets for initiatives such as cross-border issuance. "The bond market in Malaysia, estimated to be valued at US$300 billion, is still relatively small and it needs to gear up efforts in drawing more investors," said Credit Guarantee and Investment Facility (CGIF) Chief Executive Officer Kiyoshi Nishimurahe at the Asean Fixed Income Summit here Monday. He said more efforts were needed despite the fact that Malaysia had carved a name for itself in Islamic bonds by garnering about 60 per cent share of the global market, Kiyoshi said. On a positive note, he added that Malaysia was the only Asean market which has sukuk to fund infrastructure projects and this success story should be highlighted to its Asean peers. CGIF is established by Asean, alongside China, Japan, South Korea (Asean+3), as well as the Asian Development Bank. It provides credit guarantees for local currency-denominated bonds issued by investment grade companies in Asean+3 countries. --BERNAMA