CIMB-Principal Islamic Asset Management (CIMB-Principal Islamic) notes that the strong economic data release and the change of tone in the statement made by the Bank Negara Malaysia (BNM) during the May policy meeting raised expectations that a rate hike could arrive sooner rather than later.
The first quarter of 2014 has seen gross domestic product (GDP) rise by 6.2% year-on-year, higher than consensus estimate, while BNM’s statement has highlighted the need to adjust the degree of monetary accommodation to counter the threat of financial imbalances.
Wong Loke Chin, Head of Fixed Income, ASEAN Region of CIMB-Principal Asset Management, said: “We expect the demand and supply to remain healthy in 2014 with year-to-date total new gross corporate debt issuances including sukuks standing at approximately RM32 billion. For the full year 2014, we are projecting the total new gross corporate debt issuances of about RM70 billion, which is smaller than the past two years, as issuers are currently adjusting to the potential higher interest rates.”
Ramlie Kamsari, Chief Executive, CIMB-Principal Islamic said, “CIMB-Principal Islamic is dedicated and strives to provide the best service and guidance to our valued customers. We believe this ensures our relationship with our clients will be a long and satisfying one. With our commitment and support towards the Malaysia International Islamic Financial Centre’s (MIFC's) agenda to set the stage for Malaysia to position itself as a centre for the offering of Islamic financial products and services, CIMB-Principal Islamic will continue to provide a thought leadership standpoint to fortify our position as one of the leading global Malaysian-based shari'ah-compliant asset managers.”
As at 31 December 2013, CIMB-Principal Islamic’s assets under management stand at RM7.57 billion (US$2.31 billion). It manages one of the largest portfolios for global sukuk and domestic sukuk, having won breakthrough mandates in the UAE, Brunei and Saudi Arabia.