Malaysia

The construction sector is in the midst of a boom thanks to infrastructure outlays under the 10th Malaysia Plan. The highlight is the Klang Valley Mass Rapid Transit (KVMRT), which includes contracts potentially worth over $20bn through 2018. Other state-driven projects include the Pengerang petrochemical facility, the Tun Razak Exchange and several highways, although the government is promoting...

Having already developed a comprehensive transportation and logistics network across key economic regions, Malaysia is focused on improving access to rural areas and decreasing congestion in cities. The government’s biggest project is the Klang Valley Mass Rapid Transit system, which kicked off construction in 2012 on the first line, with two more to come by 2018. Other plans in the works include...

Oil and gas represent an important but slowly declining source of Malaysia’s exports and government revenues. Projected to become a net importer of both fuels by 2017, Malaysia is seeking to boost both upstream and downstream capacity, develop expertise in oilfield services, and promote renewable energy. The government has offered tax incentives for projects that use enhanced oil recovery (EOR)...

Malaysia’s insurance sector, which saw premiums rise by nearly 15% in 2011, is growing in tandem with the country’s economic development. The sector saw a wave of mergers and acquisitions for conventional insurers in recent years as regulators imposed a risk-based capital (RBC) framework. Now, with the application of RBC to takaful firms, the Islamic insurance sector is expected to consolidate as...

Malaysia’s pioneering role in the development of Islamic finance has made it a clear leader in this field, even as oil-rich Gulf countries show increasing interest in sharia-compliant finance. It is the world’s largest sukuk market – a fact underscored by the record $9.9bn offering by highway operator PLUS in January 2012 – and the second-largest takaful market. The industry has been helped by...

The local bourse has seen a bonanza of major offerings in 2012, from the $3.1bn IPO of plantations owner Felda Global, to the dual Singapore-Malaysia listing of hospital operator IHH Healthcare. The corporate bond market is also on a record-setting pace, thanks in large part to a string of sukuk sales that included a $9.9bn debt offering from tollway company PLUS. Meanwhile a wave of...