The impact of Sukuk issuances on the economic growth in Malaysia

• Main Author: Siti Sarah, Mohd Zaki Fadzil
• Format: Thesis
• Language: English; English; English
• Published: 2019
• Subjects: HF5601-5689 Accounting
• Online Access: https://etd.uum.edu.my/8948/1/s823201_01.pdf; https://etd.uum.edu.my/8948/2/s823201_02.pdf; https://etd.uum.edu.my/8948/3/s823201_references.docx; https://etd.uum.edu.my/8948/

Sukuk market has faced tremendous growth for the past few years, world widely. Sukuk has been considered as one of the important components in the Islamic capital market whereby as one of the financial instruments that provide more returns to the issuers and eventually contribute to the economic growth of a country. Hence, this study attempt to examine the impact of Sukuk issuances on the economic growth of Malaysia over a period of IO years from 2008 to 2017 on a yearly basis. There are six different types of Sukuk issuances which includes the long-term government/treasury/central bank (LGTC), long-term corporate (LCTE), long-term agency (LAGY), short-term government/treasury/central bank (SGTC), short-term corporate (SCTE) and short-term agency (SAGY) with the presences of the moderating variable which is the exchange rate (ER). The IO years' time-series data were analyzed by using the diagnostic test, unit root test and multiple regression analysis. The findings indicate that with the presences of the exchange rate, LCTE, SGTC, SCTE and SAGY found to have a significant and positive relationship with the economic growth (GDP) of Malaysia, whilst LGTC found not to be significant but shows a positive relationship with the GDP in Malaysia, and last but not least, LAGY is found to be significant but shows a negative relationship with the GDP in Malaysia. Therefore, the Sukuk issuances give impact on the economic growth of Malaysia, whereby with the presences of the moderating variable, the long-term and short-term Sukuk issuances can spur the economic growth of Malaysia.