MAS eyes sukuk for infrastructure financing

The ASEAN needs US$60b.

The Monetary Authority of Singapore believes that Islamic finance can play a role in meeting ASEAN’s burgeoning infrastructure needs.

In a speech at the 6th World Islamic Banking Conference Asia Summit, MAS Depiuty Managing Director Jacqueline Loh said that the asset-backed nature of Islamic finance makes sukuk ideal for financing of infrastructure projects.

It would also complement ongoing work by Singapore to enhance the bankability of infrastructure projects in the region and involve more capital market participants.

"Going forward, we will continue to strengthen our Islamic finance regime and capabilities to enable us to support opportunities from deepening trade and investment linkages between Asia and the Middle East, as well as infrastructure projects within the Asian region,” she said.