ISLAMIC AND ALTERNATIVE
MARKETS
Segment Loss/Profit and Operating Margin
BSAS ADV
SUKUK
4.0
3.0
2.0
1.0
0
40
30
20
10
0
20
15
10
5
0
BSAS ADV
Sukuk Value Number of Sukuks
(RM billion)
(USD billion)
3.9
40
0
-40
-80
-120
-160
1
0
-1
-2
-3
-4
Segment Loss/Profit
Operating Margin
(RM’million)
(%)
2011
2012
2013
2011
2012
2013
0.9
13.6
2011
2012
2013
32.9
20
Bursa Malaysia • Annual Report 2013
35
MARKET HIGHLIGHTS
Islamic and Alternative Markets TURNS IN ITS FIRST YEAR OF PROFIT
The Islamic and Alternative Markets (IAM) encompasses our Bursa Suq Al-Sila’ (BSAS), Exchange Traded
Bonds and Sukuk (ETBS) and offshore financial exchange offerings. The year in review saw IAM turning in its
first year of profit primarily on the back of BSAS growth.
BSAS POSTS STRONG GROWTH
Our BSAS platform is a multi-commodity and multi-currency Shari’ah-compliant platform which currently
offers five commodities tradable in 22 currencies. In 2013, trading revenue for BSAS rose 70% to RM5.8
billion as compared to RM3.4 billion in 2012. BSAS registered a profit in 2013 marking its first profitable year.
The segment saw ADV growing by 69% to RM3.9 billion in 2013 from RM2.3 billion previously. This was
mainly attributable to increasing support from local and foreign banks using commodity Murabahah and
BSAS as a medium of trade.
On 22 July 2013, BSAS recorded its highest trade ever in a day of RM10.4 billion. BSAS recorded the highest
average ADV traded in a month since its inception when the monthly total trading value hit RM5.8 billion
in December 2013. The largest single trade was recorded when BSAS facilitated the issuance of Malakoff
Power Berhad’s Sukuk for RM5.5 billion in January 2013. In total, 32 Sukuk Murabahah were issued on the
BSAS platform in 2013, with a total of RM37.7 billion in commodities traded.
The year saw the number of Trading Participants on BSAS increasing to 78 in 2013 from 69 in 2012. This
number comprised 60 local participants and 18 foreign participants.
Innovative Sukuk Listings Reinforce Market Position
On the Islamic capital market front, we retained our leadership position as the premier sukuk listing
destination for the fifth consecutive year, with 20 programmes undertaken by 18 issuers. At end 2013, the
total sukuk outstanding value stood at USD32.9 billion. We also hosted two new listings, both being non
Ringgit issuances. The Sime Darby Global Berhad USD1.5 billion Multicurrency Sukuk Issuance Programme
listed in January 2013, was Asia’s first internationally rated multicurrency sukuk programme by an Asian
Corporate under the Shari’ah principles of Ijarah. Towards the end of the year, Bursa Malaysia welcomed
the second sukuk, the Indah Capital Ltd SGD600 million exchangeable sukuk. In July 2013, the maiden
Government Investment Issue (GII) Murabahah Sukuk for RM4.0 billion was issued by the Government of
Malaysia through Bank Negara Malaysia and facilitated by our commodity Murabahah BSAS platform.
Update on Our Offshore Financial Exchange
The Labuan International Financial Exchange (LFX) recorded three new listings in 2013, which included sukuk
and bonds issued by domestic corporate issuers. A total of USD5.2 billion was raised on the LFX. LFX’s market
capitalisation as at 31 December 2013 stood at USD23.5 billion, with a total of 32 listed instruments.
Operating Revenue (RM million)
0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0
BSAS Trading
Revenue
Others
5.8
3.4
0.6
0.5
2013
2012
Chief Executive Officer’s Message and Management Discussion and Analysis
From the Board of Directors and Senior Management
