Malaysia's Sukuk expansion plans hinges on the private sector

KUALA LUMPUR: Malaysia’s efforts to create a market for ethical Islamic bonds (sukuk) are the latest in a series of government-led initiatives to develop Islamic finance, but further expansion will require a greater buy-in from a sometimes reluctant private sector.

Malaysia has been at the forefront of innovation in Islamic finance, but a reliance on state-linked firms to launch new products could be a weak spot if the sector is to grow beyond such government patronage.