'This sukuk is the sharia-compliant equivalent of Singapore government securities, and is of the highest credit standing,' said Mr Heng Swee Keat (left), managing director of the Monetary Authority of Singapore. -- PHOTO: THE BUSINESS TIMES
THE Monetary Authority of Singapore has announced a $200 million Islamic bond programme, or sukuk, to promte the growth of Islamic finance here.
The investment instrument equivalent to Singapore government securities will help Islamic banks and other investors in Singapore manage their liquidity and investment portfolio.
It will also pave the way for the possible launch of retail Islamic banking products here.
This is the first local currency sukuk programme established by a non-Muslim majority country and places Singapore ahead of financial rival Hong Kong in such issuance.
Hong Kong recently said that its priority is to develop an Islamic bond market despite the global financial crisis.
