Growth potential for Islamic finance in Singapore still strong: experts
Experts say the growth potential for Islamic finance in Singapore is still strong. Sukuk or Islamic bond issuances totalled US$137 billion in 2012, up from US$92b in 2011. Yet there is still a gap to fill in the Islamic capital market. According to Mr Ng Nam Sin, Assistant Managing Director (Development) at the Monetary Authority of Singapore, the increased volume of issuance is still insufficient to meet the huge demand for Islamic assets for investments and Islamic financial institutions to manage their liabilities. Moreover, there is also a need to broaden the range of Islamic capital market products. Singapore already has the right infrastructure and good regulations already in place. Experts say Singapore’s strong regulatory environment and the depth and diversity of its capital markets will enable it to capture a bigger slice of the Islamic financing market.