MALAYSIA: Sunway Treasury Sukuk to sell Islamic papers Series 11 next week

Thursday, 27th August 2015

S&P 500 Shariah Dow Jones Islamic World FTSE Shariah All World Russell - IdealRatings Islamic Global 1,692.96 2,689.31 1,845.96 1,752.29 ▲ 68.06 (4.19%) ▲ 61.73 (2.35%) ▲ 35.00 (1.93%) ▲ 34.14 (1.99%)

HIGHLIGHTS: Noor Bank to invest in Indonesian sovereign Sukuk – Iranian banks to resume business in the UK – Capital Markets Malaysia names new CEO

This week's poll question: Will India's need for infrastructure funding finally open the doors to Islamic finance?

STMB diversifies distribution channel to bolster Takaful penetration rate Daily Cover MALAYSIA: One of the largest Takaful operators in Malaysia has forged an exclusive partnership with RHB Islamic in the backdrop of a growing number of bancaTakaful arrangements as Islamic insurers show no signs of abating their efforts to widen their reach and increase their market share. Syarikat Takaful Malaysia (STMB) has revealed that it has entered into a 10-year bancaTakaful agreement with RHB Islamic Bank under which the bank will distribute the operator’s Family and General Takaful products for a total service fee of RM110 million (US$25.84 million). “The bancaTakaful service agreement is not expected to have any material effect on earnings and earnings per share of STMB group for the financial year ending the 31st December 2015 but is expected to contribute positively to the future earnings of STMB group,” the insurer noted in a bourse filing. STMB’s strategic decision follows a slew of similar partnerships in recent months by its peers including Great Eastern Takaful with both Al Rajhi Malaysia and Bank Muamalat Malaysia, moves which build the momentum toward doubling the country’s bancaTakaful penetration rate to 10% as targeted by the central bank. Despite commanding the world’s largest Family Takaful market share, Malaysia intends to up the penetration rate of life insurance and Family Takaful to 75% from 54% (2013) and Bank Negara Malaysia in a concept paper highlighted the need to diversify distribution channels to meet that target. Apart from making available pure protection products via direct channels and incentivizing the growth of financial advisors, the regulator emphasized the need to form alliances with Islamic banks to capitalize on their extensive network. Holding about three quarters share of total gross Takaful contributions in ASEAN, Malaysia’s total net contribution of Family Takaful reached RM4.5 billion (US$1.06 billion) in 2014 according to EY. Brunei: An IFN Correspondent Report Major boost for Islamic finance in Brunei The Islamic finance industry in Brunei received a welcome boost recently with strong endorsement from the UK’s top envoy that the UK is highly keen to collaborate with Brunei on the development of Islamic finance in both countries through the sharing of expertise and knowledge. Today's IFN Alerts GLOBAL: Noor Bank to invest more than US$500 million in Indonesian sovereign Sukuk as it seeks to increase its Islamic assets MALAYSIA: Sunway Treasury Sukuk to sell Islamic papers Series 11 next week MALAYSIA: Puncak Niaga Holdings to make Sukuk payment on the 17th September GLOBAL: Iranian banks to resume operations in the UK TANZANIA: First National Bank inaugurates new branch in Dar es Salaam GLOBAL: Gulf private equity firms compete for majority stake in Al Raya for Foodstuff Co UAE: Noor Bank teams up with Dubai Properties to offer Shariah compliant property financing options MALAYSIA: Al-‘Aqar Healthcare REIT posts after-tax profit of RM15.26 million (US$3.58 million) BAHRAIN: Capital Intelligence affirms Gulf Finance House’s rating with stable outlook MALAYSIA: Azhar Zabidi to lead Capital Markets Malaysia as CEO QATAR: Qatar Financial Center names Hamed Al-Saadi as chief financial officer and tax officer UAE: President of the Securities and Exchange Organization of the Islamic Republic of Iran to address delegates at the IFN Issuers Forum in Dubai this September IVORY COAST: Sidra Capital and INOKS Capital sign on as lead partners for the Africa Islamic Finance Forum in September IVORY COAST: Director-general of Arab Bank for Economic Development in Africa confirms participation at the Africa Islamic Finance Forum in September IVORY COAST: President of Cote d’Ivoire, Alassane Ouattara, to officiate the Africa Islamic Finance Forum organized by ICD INDONESIA: Indonesia’s finance minister to deliver keynote address at the IFN Issuers Forum taking place at the Ritz Carlton DIFC in Dubai on the 13th September

IFN Issuers Forum 2015 13th September 2015 (Dubai) Africa Islamic Finance Forum 2015 17th & 18th September 2015 (Abidjan, Cote d’Ivoire) IFN Kuwait Forum 2015 19th October 2015 (Kuwait City) IFN Turkey Forum 2015 17th November 2015 (Istanbul) IFN Saudi Arabia Forum 2015 30th November 2015 (Le Meridien Hotel, Jeddah) Undertaking Effective Litigation & Recovery in Islamic Finance Facilities 7th - 8th September 2015 (Kuala Lumpur) Structuring Islamic Financial Products 8th - 10th September 2015 (Kuala Lumpur) Sharia’a Compliance & Audit for Islamic Banks 8th - 9th September 2015 (Dubai) Trading Book Market Risk Management for Financial Institutions 9th - 10th September 2015 (Dubai) IFSA 2013 Compliance for Islamic Financial Institutions 29th September 2015 (Kuala Lumpur) Musharakah-Based Contracts & Financial Products 5th October 2015 (Kuala Lumpur) Trading Book Market Risk Management for Financial Institutions 8th - 9th October 2015 (Kuala Lumpur) Islamic Treasury & Risk Management Instruments 12th - 13th October 2015 (Kuwait) Structuring Islamic Legal Documentation 20th - 21st October 2015 (Kuala Lumpur)

RHB | Singapore | Industrial Production Starts 2H On The Back-Foot As Its Two Largest Sectors Struggle

Economic Research	27 August 2015
Singapore
Economic Highlights
Industrial Production Starts 2H On The Back-Foot As Its Two Largest Sectors Struggle Singapore’s industrial production index (IPI) slumped 6.1% y-o-y in July, deteriorating from a 4.0% drop in June. This was on account of a decline in electronics and biomedical manufacturing output. The fall was cushioned by a slower decline in transport engineering activities, while production of chemicals stagnated. Excluding the volatile biomedical manufacturing sector, the IPI would have contracted at 4.1% y-o-y in July, compared to -4.8% in June. Economist:  Ng Kee Chou | +603 92802179
To access our recent reports please click on the links below: 25 August 2015:Consumer Prices Slip, Uneven Global Demand Outlook Increases Pressure For Further Easing 18 August 2015: Singapore NODX Recovery Unable To Gain Traction, As Global Recovery Remains Slow And Uneven 12 August 2015: Slight Upward Revision For Singapore’s 2Q GDP But Manufacturing Worries Mount 02 August 2015: Broad Money Slows While Loan Growth Turn Positive 27 July 2015: Industrial Production Plunge Highlights Slower Than Expected Recovery

CIMB Daily Fixed Income Commentary - 28 Aug 2015

Market Roundup

• US Treasury yields only managed to inch higher, despite the improved risk-on sentiment following the gains in stock market, decent economic releases and sharp rebound in crude oil prices on Thursday. Crude oil recovered substantially and settled higher at $47.56/bbl, compared to $43.14/bbl a day ago.
• Malaysian sovereign bonds suffered losses, despite the MYR recovered some on the heels of higher crude oil prices. Highlight was on theRM3 billion 10-year MGS reopening auction, which ended with decent bid-cover ratio of 2.03 times, while average yield stopped at 4.453%, near to the prior day close at 4.44%.
• Thai govvies posted gains, on the back of weak economic releases. July customs exports fell by a smaller margin of 3.56% (vs 7.87% in Jun), while customs imports shrank substantially by 12.73% (vs 0.21% in Jun). Aside, daily volume declined drastically from Bt23.6 billion to Bt16.8 billion on Thursday.
• Indonesia government bond market rallied on positive sentiment driven by government announcement to launch economic stimulus plan. Both local & foreign names were seen buying today, with FR70 (10-year) benchmark series dominated the market today. Government decides to give tax holidays to new companies investing at least IDR 1 trillion, this tax holidays plan is seen as an 'appetizer' part of a big stimulus plan. We think market will digest the stimulus package as it is too early to conclude the effectiveness of the stimulus plan. Volume improved to IDR 14.4 trillion.
• Asian credits ended tighter amid choppy trading, guided by improved bidding interest and short-covering following the gains in stock markets. Oil-related papers such as Petronas and PTTEP were quoted tighter, driven by the recovery in crude oil prices. Notably, regional CDS spreads tightened by 6-16bps on Thursday.