Islamic Finance as a Form of Financial Intermediation and Financial Stability in Malaysia
Sukuk : Islamic Finance As A Form of Financial Intermediation and Financial Stability in Malaysia
1.0 INTRODUCTION
Beginning in late 2006, the collapse of U.S sub prime mortgage market and the reversal of the housing boom have had a ripple effect around the world. The experience of Mexico around the Tequila crisis and Thailand around the Asian crisis are prototypical examples of the boom-bust cycle (Aaron Turnell and Frank Westermann, 2006, P.48). In fact, more than half of the major world economies, in particular the U.S, the Euro area and Japan, are in recession and experiencing the worst economic contraction since the Great Depression of the 1930s.
To cushion the impact of the economic crisis, the Malaysian government had tabled the First Stimulus Package with an allocation of RM7 billion to sustain growth, ensuring resilient financial sector credit flows, promoting investment and new sources of growth, reprioritizing 9th Plan projects and enhancing social safety net programme (Tan Sri Sulaiman Mahbob, EPU, 2009). While the project under First Stimulus Package is still on, government continued to tabled the larger, comprehensive, encompassing various economic sector and target group of stimulus package also known as Mini Budget.
The target group under second core in the second stimulus package is to increase income of ‘rakyat’ makes government to issue syariah-compliant Savings Bonds (Islamic Bond) understanding that the Islamic bond or Sukuk is one of the Islamic financial instrument that government use to cure the economic crisis.
2.0 FIELD OF RESEARCH
2.1 Islamic Financial System
2.2 The International Bond Market
2.3 The Global Sukuk Market
2.4 Sukuk In Malaysia
3.0 TOPIC OF RESEARCH PROPOSAL
3.1 General
Islamic Financial System
3.2 Specific
Sukuk : Islamic Finance As A Form of Financial Intermediation and Financial Stability in Malaysia
4.0 LITERATURE REVIEW
1.0 INTRODUCTION
Beginning in late 2006, the collapse of U.S sub prime mortgage market and the reversal of the housing boom have had a ripple effect around the world. The experience of Mexico around the Tequila crisis and Thailand around the Asian crisis are prototypical examples of the boom-bust cycle (Aaron Turnell and Frank Westermann, 2006, P.48). In fact, more than half of the major world economies, in particular the U.S, the Euro area and Japan, are in recession and experiencing the worst economic contraction since the Great Depression of the 1930s.
To cushion the impact of the economic crisis, the Malaysian government had tabled the First Stimulus Package with an allocation of RM7 billion to sustain growth, ensuring resilient financial sector credit flows, promoting investment and new sources of growth, reprioritizing 9th Plan projects and enhancing social safety net programme (Tan Sri Sulaiman Mahbob, EPU, 2009). While the project under First Stimulus Package is still on, government continued to tabled the larger, comprehensive, encompassing various economic sector and target group of stimulus package also known as Mini Budget.
The target group under second core in the second stimulus package is to increase income of ‘rakyat’ makes government to issue syariah-compliant Savings Bonds (Islamic Bond) understanding that the Islamic bond or Sukuk is one of the Islamic financial instrument that government use to cure the economic crisis.
2.0 FIELD OF RESEARCH
2.1 Islamic Financial System
2.2 The International Bond Market
2.3 The Global Sukuk Market
2.4 Sukuk In Malaysia
3.0 TOPIC OF RESEARCH PROPOSAL
3.1 General
Islamic Financial System
3.2 Specific
Sukuk : Islamic Finance As A Form of Financial Intermediation and Financial Stability in Malaysia
4.0 LITERATURE REVIEW
Bibliography: Aaron Tarnell ad Frank Westermann (2006), Boom-Bust Cycles and Financial Liberalization, The MIT Press Cambridge, Massachusetts, London, England. Ahamed Kameel Mydin Meera, (2002), The Islamic Gold Dinar, Pelanduk Publication, Kuala Lumpur. Abdul Aziz M. Al-Dukhell, (1995), The Banking System and Its Performance In Saudi Arabia, Saqi Books, London. Andrew Baker, David Hudson and Richard Woodword, (2002), Governing Financial Globalization, International Political Economy and Multi-Level Governance, Routledge Taylor & Francis Group, New York. Haji Hahsin bin Haji Mansor (1984), Undang-Undang Perdagangan Islam, Alharamain Sdn Bhd, Kuala Lumpur Issuance of Sukuk Simpanan Rakyat 01/2009, Bank Negara Malaysia, Press Statement Ian H. Giddy (1994), Global Financial Markets, D.C. Heath and Company, Toronto. Mahmood A. El-Gamal, (2006), Islamic Finance Law, Economics and Practice, Cambridge University Press, New York. Muhammad Ayub, (2007), Understanding Islamic Finance, John Wiley & Sons LTD, India. Peter S-Rose (1997), Money and Capital Markets Financial Institution and Instrument in Global Marketplace, Texas A & M University, USA. PR Joshi, (1996), Global Capital Markets, Shopping For Finance, Tata McGraw Hill Publishing, Delhi. Romesh Vaitilingam, (1996) The Financial Times : Guide To Using The Financial Pages, FT Pitman Publishing, Great Britain. Saiful Azhar Rosly (2005), Critical Issues on Islamic Banking and Financial Markets, Dinamas Publishing.