Don’t cheer over sukuk take-up, it’s debt, govt told - Printable Version +- Ipoh Community Forums (https://forums.ipoh.com.my) +-- Forum: News and Current Affairs (https://forums.ipoh.com.my/forum-11.html) +--- Forum: Local News (https://forums.ipoh.com.my/forum-12.html) +---- Forum: Politics (https://forums.ipoh.com.my/forum-50.html) +---- Thread: Don’t cheer over sukuk take-up, it’s debt, govt told (/thread-1424.html)

Don’t cheer over sukuk take-up, it’s debt, govt told - superadmin - 04-27-2021 PETALING JAYA: The enthusiasm of government leaders over the oversubscription of its recent sustainability sukuk issuance is misplaced, says an economist, adding there is “nothing to cheer about”. “The government issues sukuk to raise money. It’s debt, it’s not foreign direct investment (FDI),” said Carmelo Ferlito of the Center for Market Education. “Yes, the oversubscription is a sign that the market is confident of the Malaysian government’s ability to repay its debts over a long period, but it’s nothing to cheer about.” Ferlito said the issuance of the sukuk in US dollars poses a long-term threat to Malaysia’s finances because of the risk that comes with currency fluctuations. “In the past decade, the ringgit has depreciated by almost 30% against the US dollar. So if this trend continues, it means the amount of money we need to repay when the debt is due increases.” He was commenting on the remarks of some government leaders on the oversubscription to the world’s first sovereign US dollar sustainability sukuk, which was done through the issuance of US$800 million 10-year trust certificates and US$500 million 30-year trust certificates. - More -