HSBC Amanah upbeat on sukuk market

KUALA LUMPUR (Dec 14, 2011): HSBC Amanah Malaysia Bhd is upbeat on the local banking sector next year, expecting over 60% of global sukuk issuance to continue to come from Malaysia.

Its CEO Rafe Haneef said the sukuk sector saw significant growth this year, with over 60% of sukuk issued worldwide denominated in ringgit.

Speaking to reporters after the launch of the 13th HSBC Amanah branch in Old Klang Road here yesterday, he said the bank expects the sukuk sector to maintain the same performance next year, especially with the Economic Transformation Programme projects that are funded by sukuk coming on line and projected a 4.5% to 5% gross domestic product growth for th country.

Rafe added that HSBC, which is the world's largest sponsor of Islamic bonds, aims to maintain its global growth of 10% and looks to diversify with more investment products in Malaysia next year.

The opening of the latest branch brings the number of HSBC branches in the country to 55.

HSBC Amanah global CEO Mukhtar Hussain said it will open another two branches this month in Penang and the Klang Valley, and has a target of having 26 HSBC Amanah branches in its network next year.