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SEMINAR ON ISLAMIC FINANCE
&
INITIAL PUBLIC OFFERINGS (IPOs)
IN THE ISLAMIC FINANCING CONTEXT
STRICTLY PRIVATE & CONFIDENTIAL
17 March 2010 / 1 Rabiulakhir 1431H
LIM SHUEH LI
HEAD OF CORPORATE FINANCE DEPARTMENT
CORPORATE INVESTMENT BANKING
BANK ISLAM MALAYSIA BERHAD
IN THE ISLAMIC FINANCING CONTEXT
IPO
Why IPO?
LIQUIDITY OF
SECURITIES
� IPO provides greater liquidity of securities.
� Quoted securities, because of their marketability, may be
transacted at a premium.
� Quoted securities tend to be accepted by lenders as
collateral.
ABILITY TO RAISE
FUNDS
� Wider choice of financing alternatives e.g. issue of new
equity securities, private debt securities or debt securities
with equity linked instruments.
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with equity linked instruments.
� Able to secure borrowing at more competitive terms as a
result of its enhanced credit standing.
BETTER POSITION
TO SECURE
BUSINESS DEALS
� Suppliers, customers and other business associates may
feel more secure when they are dealing with public listed
companies.
� This is mainly due to the listing status which may provide
some indication as to the financial strengths and quality of
management of Applicant.
IPO
Why IPO? (cont’d)
ENABLE PUBLIC
PARTICIPATION
� A listing status will provide the Malaysian public the
opportunity to participate in the equity of Applicant and
hence its future growth and profitability.
ENHANCEMENT OF
IMAGE
� Greater visibility and higher profile.
� Listed status enhances reputation and credibility of
Applicant.
ATTRACT AND � As a way of rewarding employees, Applicant can consider
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ATTRACT AND
RETAIN
EMPLOYEES
� As a way of rewarding employees, Applicant can consider
the allocation of securities via pink forms to its employees in
its IPO exercise. These allocations would constitute part of
the public shareholding spread requirement.
� Ability to attract, retain and reward employees through the
establishment of an Employee Share Option Scheme
(“ESOS”).
� A listed company's ESOS is naturally more attractive to
existing and prospective employees.
IPO
Implications of IPO
COMPLIANCE AND
DISCLOSURE
REQUIREMENTS
� A listed company has to comply with the rules of Bursa
Malaysia Securities Berhad (“Bursa Securities”) and
Securities Commission (“SC”) which regulate its
transactions and impose extensive disclosure
requirements such as quarterly and annually reporting to
shareholders and public.
� Opportunity for competitors to understand more the public
listed company’s business strategies.
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listed company’s business strategies.
SHAREHOLDERS’
APPROVAL
� All major investment decisions, acquisitions, divestment or
securities issues will require approval of shareholders at a
general meeting convened for that purpose. Transactions
involving the interests of substantial shareholders and/or
directors will preclude them and their related parties from
voting.
IPO
Implications of IPO (cont’d)
PUBLIC
ACCOUNTABILITY
� A listed company is usually under constant scrutiny of the
press and the public.
REDUCING
CONTROL
� The existing management/owner of an unlisted company
would have their interest diluted as part of the IPO
process.
� Major shareholders would not be in the position to control
the action of other shareholders.
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DIRECTORS’
RESPONSIBILITIES
� Applicant’s directors will have greater responsibility to
safeguard the interests of Applicant and its shareholders,
particularly the minority shareholders.
� Stricter requirements to comply with existing
requirements and disclosures.
HIGHER COSTS
AND RESOURCES
COMMITMENT
� Additional costs, resources and disclosures
requirements, i.e. quarterly and annually financial
reporting to shareholders and public.
IPO
Practical Issues for Consideration
Prior to Submission
� Taxation
• All tax issues would need to be settled and addressed.
• SC’s equity guidelines contains provisions for Applicant and its
subsidiaries to make up-to-date submissions of tax returns and
settlements of tax liabilities to Inland Revenue Board.
• Tax issues may reflect the promoters’ attitude towards corporate
� Taxation
• All tax issues would need to be settled and addressed.
• SC’s equity guidelines contains provisions for Applicant and its
subsidiaries to make up-to-date submissions of tax returns and
settlements of tax liabilities to Inland Revenue Board.
• Tax issues may reflect the promoters’ attitude towards corporate
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• Tax issues may reflect the promoters’ attitude towards corporate
governance.
• Tax issues may reflect the promoters’ attitude towards corporate
governance.
� Conflicts of Interests
• All conflicts of interests especially between directors’ personal interest
and the Applicant’s businesses should be resolved, eliminated or
mitigated prior to listing, which have to be fully disclosed and addressed
in the prospectus and submission to the authorities.
IPO
Practical Issues for Consideration (cont’d)
� Bumiputera shareholdings for National Development Policy (“NDP”)
Requirements
• If the company proposes to nominate its own Bumiputera shareholders to
be recognized by the Ministry of International Trade and Industry to meet
the NDP requirements, it should ensure that these parties would become
shareholders of the Applicant at least 6 months prior to the submission to
the authorities.
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� Licenses, Permits and Approvals
• All licenses, permits and approvals for the Applicant to carry out its
business should be obtained prior to submission.
• Certificates of fitness for occupation (CF) must be obtained particularly
for Applicant’s factories. IPO may be delayed if CF are not obtained.
� Licenses, Permits and Approvals
• All licenses, permits and approvals for the Applicant to carry out its
business should be obtained prior to submission.
• Certificates of fitness for occupation (CF) must be obtained particularly
for Applicant’s factories. IPO may be delayed if CF are not obtained.
IPO
Practical Issues for Consideration (cont’d)
� Corporate Governance
• High emphasis on corporate governance.
• SC may reject proposals where Applicant or its directors have adverse
� Corporate Governance
• High emphasis on corporate governance.
• SC may reject proposals where Applicant or its directors have adverse
� Risk Management Issues
• Issues on susceptibility to flood, fire, outbreak of disease and other risk
factors which may be detrimental to the operations of Applicant.
� Risk Management Issues
• Issues on susceptibility to flood, fire, outbreak of disease and other risk
factors which may be detrimental to the operations of Applicant.
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• SC may reject proposals where Applicant or its directors have adverse
governance records, e.g. breach of laws and guidelines.
• SC may reject proposals where Applicant or its directors have adverse
governance records, e.g. breach of laws and guidelines.
IPO
Practical Issues for Consideration (cont’d)
Assessment of suitability for listing
� Qualitative Issues
• Industry developments affecting viability of business.
• Competition intensity : Need for Applicant to demonstrate its competitive edge.
• High reliance on certain customers/suppliers.
• Non-compliance to legislations, rules and conditions imposed by authorities.
• Continuity of management/succession planning, i.e. dependence on certain
directors or key management.
� Qualitative Issues
• Industry developments affecting viability of business.
• Competition intensity : Need for Applicant to demonstrate its competitive edge.
• High reliance on certain customers/suppliers.
• Non-compliance to legislations, rules and conditions imposed by authorities.
• Continuity of management/succession planning, i.e. dependence on certain
directors or key management.
9
directors or key management.directors or key management.
� Quantitative Issues
• Uncertainty in future financial performance.
• Profit track record met through contribution from non-sustainable business.
• High gearing ratio.
• Default in borrowings.
• High slow moving and/or obsolete stocks.
• High overdue trade debtors.
� Quantitative Issues
• Uncertainty in future financial performance.
• Profit track record met through contribution from non-sustainable business.
• High gearing ratio.
• Default in borrowings.
• High slow moving and/or obsolete stocks.
• High overdue trade debtors.
IPO
Malaysia Stock Market & IPO Environment
Number of New Listings (As at 25 February 2010)
Year Main Market ACE Market Total
2010 2 0 2
2009 12 2 14
Year Main Board Second Board Mesdaq Market Total
2008 7 8 8 23
2007 15 8 3 26
2006 10 8 22 40
2005 16 17 46 79
10
Number of Listed Companies (As at 8 March 2010)
Year Main Market ACE Market Total
2010 842 116 958
2009 844 116 960
Year Main Board Second Board Mesdaq Market Total
2008 634 221 122 977
2007 636 227 124 987
2006 649 250 128 1027
2005 646 268 107 1021
Source : Bursa Securities’ website
IPO
Estimated Listing Timeline
An estimation of approximately 7 months is required for the completion of an
IPO exercise.
time
Appointment of Principal
Adviser
Submission to
Authorities
(SC and other relevant
authorities)
Underwriting Signing
CeremonyBalloting
4.5 months6 months 7 months
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Appointment of Due
Diligence Solicitors and
Reporting Accountants
Approval from
SC and other relevant
authorities
Registration and Lodgement of
Prospectus with SC and CCM
Opening of Offer
Start 2 months 5.5 months 6.5 months
LISTING
Submission of quotation
documents
CCM: Companies Commission of Malaysia
IPO
Bank Islam’s Roles in IPO
� Our roles may include the following:-
• Advise, plan and implement the optimum strategy for IPO;
• Advise on the restructuring and equity structure in preparation for IPO;
• Advise on the relevant guidelines and regulations of relevant
authorities;
• Coordinating the work of the parties involved in the IPO;
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• Coordinating the work of the parties involved in the IPO;
• Assisting the company to project manage the deal to completion;
• Assisting in review of documentations associated with the IPO;
• Assisting in due diligence review and verification exercise process to be
carried out for the IPO; and
• Preparing and making submission to the relevant authorities for
approvals.
MAIN MARKET OF MAIN MARKET OF
BURSA MALAYSIA SECURITIES BERHADBURSA MALAYSIA SECURITIES BERHAD
13
BURSA MALAYSIA SECURITIES BERHADBURSA MALAYSIA SECURITIES BERHAD
Main Market of Bursa Securities
Equity Guidelines - Main Market
Requirement Equity Guidelines Remarks
Profit track
record test
� Profit track record:
� Uninterrupted profit track record of 3 to 5
full FYs:-
� Ease requirements to be met by
applicant, easier access with uniform
entry requirements.
� The new profit requirements of the
Main Market is the average of both,
the Main Board and Second Board. It
takes into consideration profit
requirements of other major bourses.
Main Market
Total PAT over
3-5 FYs
≥ RM20 million
PAT for the ≥ RM6 million
14
� ProformaAccounts:-
� Qualifying companies must be able to fulfill
the profit requirements based on the
strength of the group’s proforma accounts:-
- Same core business;
- Common controlling shareholders.
� Similar entry requirement for
companies with predominantly
foreign-based operations may attract
foreign listings.
PAT for the
most recent
FY
≥ RM6 million
Requirement Equity Guidelines Remarks
Market
capitalisation
test
� Market capitalisation:-
� Minimum RM500 million.
� Profit record:-
� None.
� ProformaAccounts:-
� If listing based on the strength of proforma
accounts, corporations within the group
must have common controlling
� Removals of:-
(i) profit requirement for latest
financial year;
(ii) same core business and
common directors for
proforma accounts; and
(iii) shortening of operating
history;
will enable more large capitalised
local and foreign companies to list in
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
15
must have common controlling
shareholders only.
� Operating history:-
� Must have been incorporated and
generated operating revenue for at least 1
full financial year.
local and foreign companies to list in
Malaysia.
� The changes bring our requirements
at par with than other regional
exchanges.
Requirement Equity Guidelines Remarks
Infrastructure
project
company (IPC)
test
� Applicants with remaining concession or license
of at least 15 years.
� At least RM500.0 million project cost.
� Shorter remaining concession period allowed if
the IPC has a profit track record.
� More IPCs will be eligible for listing.
Minimum paid-
up capital
� No minimum paid-up capital. � Another flexibility provided by SC.
Profitable companies not requiring
large capital base e.g. services or
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
16
large capital base e.g. services or
trading industries now able to list on
Bursa Securities without having to
enlarge its share capital beyond its
business requirement.
Management
Continuity and
Capability
� Applicant should have had continuity of
substantially the same management for at least
three full financial years prior to submission to
the SC or for companies listing through market
capitalisation or IPC route, since the
commencement of its operations (if less than
three full financial years).
Requirement Equity Guidelines Remarks
Underwriting � No mandatory underwriting.
� Optional underwriting based on the funding
requirements of applicant.
� Underwriting arrangements are at the discretion
of the applicant and its Principal Adviser (PA).
� If there is an underwriting arrangement, the PA
must be part of the syndicate of underwriters.
� Optional underwriting may raise new
issues to the market.
� Market perception for the new listing if
no underwriting arrangement is put in
place.
� PA and applicant need to consider all
the risk factors when determining the
minimum level and maximum level of
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
17
must be part of the syndicate of underwriters.
� To disclose in the listing prospectus:-
� If the minimum subscription is not
achieved, the offering of securities must be
terminated and all consideration received
must be returned to subscriber.
� The level of underwriting that has been
arranged, with justifications for the level
arrangement.
minimum level and maximum level of
shares available for subscription
including the reputational impact
should there be an under-subscription
situation.
Requirement Equity Guidelines Remarks
Additional
requirements
for the Listing
of Specific
Companies
� All additional requirements have been removed.
� For property development and investment
companies, an independent valuer must be
appointed.
� Lesser requirements to meet for the
specific companies.
� Easier access for these companies to
enter into the capital markets.
Secondary
listing of
foreign
� The market capitalisation and profit
requirements have been removed.
� With the removal of the market
capitalisation and profit requirements,
it would encourage more secondary
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
18
foreign
corporations � Foreign corporations should have the relevant
laws and standards that are at least equivalent
to those in Malaysia particularly with respect to:-
(i) corporate governance;
(ii) shareholder and minority interest protection;
and
(iii) take-overs and mergers.
it would encourage more secondary
listings of foreign corporations on
Bursa Securities.
� PA to assume more responsibilities in
listing foreign corporations.
� Concern may be foregoing quality for
quantity with the removal of the
quantitative requirements?
Requirement Equity Guidelines Remarks
Allocation to
Bumiputera
investors
� Companies with Malaysian-based operations
seeking listing on the Main Market and ACE
Market are required to allocate 50% of the
public spread requirement to public Bumiputera
investors (<5% shareholdings) at the point of
listing (i.e. effectively 12.5% Bumi equity
participation) (“Requirement”). This includes
the portion made available for subscription via
balloting, 50% of which are to be made
available to retail Bumiputera investors.
� Easier access to Malaysia’s capital
market and shortening the time to
listing as currently some companies
have difficulties in allocating shares to
Bumi investors.
� Under the revised process, domestic
companies seeking listing will have to
comply with the Requirement of
12.5% Bumi equity participation:-
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
19
available to retail Bumiputera investors.
� Companies with Multimedia Super Corridor
(MSC) status, BioNexus status and companies
with predominantly foreign-based operations
are exempted from the Bumiputera equity
requirements.
12.5% Bumi equity participation:-
� Applicant to make their shares
available to MITI-approved
institutions and investors;
� If shares unsubscribed, shares
are to be made available to a
wider Bumi public via an IPO
balloting process; and
� Applicant will be deemed to have
complied with the Bumi equity
requirement once they have
completed the process.
Requirement Equity Guidelines Remarks
Moratorium on
Disposal of
Shares
� For IPC, moratorium on promoters’ entire
shareholdings for 6 months period and 45%
thereafter until IPC registered full financial year
revenue.
� For listing under profit track record test or
market capitalisation test, moratorium on
promoters’ entire shareholdings for 6 months
period from the date of listing.
� Uniform moratorium requirements for
companies listed under profit test,
market capitalisation test and IPC test.
� Shorter moratorium for IPC i.e.
promoters cannot sell their shares in
first 6 months.
� Raises concerns on investor’s
protection :-
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
20
protection :-
� Will it reduce an investor’s
comfort investing in IPC’s?
Requirement Equity Guidelines Remarks
Special
Purpose
Acquisition
Companies
(SPACs)
Definition of
SPACs:
Shell
companies
� Must raise a minimum RM150.0 million.
� Minimum 90% of IPO proceeds to be deposited
in a trust account.
� At least 80% of amount in trust account to be
used for qualifying acquisition.
� At least 10% in the SPAC held by management
team upon IPO with embedded restriction on
� SPACs could be used as a vehicle to
promote private equity activities and
encourage corporate mergers and
acquisitions (M&A) – no restriction in
the industry that SPAC can make
investment.
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
21
companies
without
operations that
go public with
the intention of
merging with or
acquiring
operating
companies of
business with
the proceeds of
their IPO
team upon IPO with embedded restriction on
voting and participation in liquidation
distribution.
� A SPAC must demonstrate that the members of
its management team have the experience,
qualification and competence to achieve the
SPAC’s business strategy.
Requirement Equity Guidelines Remarks
Back-Door
Listings
(“BDL”)/
Reverse
Takeovers
(“RTO”)
BDL/RTO must satisfy the following tests:-
� Aggregate PAT over 3 to 5 years minimum
RM20.0 million.
� Latest financial year PAT of minimum RM6.0
million.
� Allow profit requirement to be met by enlarged
group/assets.
� The requirements are now aligned as
per IPO requirements.
� SC’s approval is not required for
disposal of assets. However approval
is required at the point when a listed
company acquires assets which
results in a BDL/RTO.
� In line with the SC’s objective to
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
22
group/assets. � In line with the SC’s objective to
encourage more M&A. Profits from
the new assets can be combined with
the existing assets to meet the
minimum profit track record
requirement.
� BDL/RTO is easier since
“uninterrupted profit” requirement has
been removed.
Requirement Equity Guidelines Remarks
BDL/RTO
(cont’d)
� Moratorium on vendor’s shareholdings for 6
months.
� Placement of shares to meet shareholdings.
� A new percentage ratio has been introduced:-
(i) Revenue attributable to the assets which
are the subject of the acquisition divided
by the revenue of the listing corporation;
and
� Uniform moratorium period as IPO i.e.
6 months.
� However, more responsibility for PA
as there is enhanced disclosure
requirements in the announcement
and circular e.g. greater details on
utilisation of proceeds raised and
justifications for issue of new
securities rather than available
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
23
and
(ii) Further clarification is set out in PN3.
securities rather than available
financing options etc. Further details
are set out in Appendix 10A and 10B
of Listing Requirements (LR).
Requirement Equity Guidelines Remarks
Proposals by
Distressed
Listed
Company
(“DLC”)
� Removed entirely from the Equity Guidelines -
Main Market.
� Such DLC will be governed under the Bursa
Securities’ LR Para 8.04 and PN 17/ GN 3. PA
to ensure:
� Listed companies’ regularisation plan must
demonstrate that restructuring scheme:-
(i) is comprehensive and able to regularise its
condition;
� A DLC may be able to turn around its
financial position without undertaking
a BDL/RTO.
� If a listed company is reclassified as a
DLC within 3 years after it has
undertaken its first regularisation
proposal, the second regularisation
proposal must be of a BDL/RTO
nature and be subjected to the SC’s
Main Market of Bursa Securities
Equity Guidelines - Main Market (cont’d)
24
condition;
(ii) no longer trigger PN17/GN3 conditions;
and
the scheme will increase shareholders’ value.
nature and be subjected to the SC’s
approval.
� More responsibility by PA to ensure
that the reqularisation plan meets with
Bursa Securities’ LR.
Transfer from
ACE Market to
Main Market
� Compliance with either profit track record test,
market capitalisation test or IPC test.
� Requirement is simplified where it is
similar to the IPO’s requirements.
� Much more paper work as the
introductory document needs to meet
with the Prospectus Guidelines and
Procedures for Registration.
MAIN MARKET:MAIN MARKET:
SUBMISSION PROCESSSUBMISSION PROCESS
25
SUBMISSION PROCESSSUBMISSION PROCESS
T (working/market days)
15�Prospectus public exposure ends
�SC issues queries and suggestions for disclosure
enhancements
0
Application can be made to Bursa
Securities for Initial Listing (no more
separate application for listing and
quotation) at any time. Documents
(10)�Submission of valuation report
�Pre-submission consultation
�Submission to SC under S212 and S232 CMSA
�Prospectus public exposure period begins
�Review of application and prospectus begins
SC Bursa
Main Market: Submission Process
Main Market Submission Process
26
enhancements
40�Adviser reverts with reply to queries,
replacement pages for prospectus
53�SC issues decision letter on approval for IPO and
approval-in-principle for prospectus registration
�Registration of prospectus60
66
quotation) at any time. Documents
required:
� Application form
� Copy of the prospectus
� Declarations / undertaken by
applicant & adviser
Processing timeframe : 6 market days
Last date for listing application to be
approved
61� Issuance of prospectus / offer period begins
� Shariah-compliant securities are securities (ordinary shares, warrants and
transferable subscription rights) of a Bursa Securities-listed company which
have been classified as Shariah permissible for investment, based on the
company’s compliance with Shariah principles in terms of its primary
business and investment activities.
� Shariah-compliant securities list was introduced in 1997 by the Shariah
Advisory Council of the SC (“SAC”).
Shariah-Compliant Securities
Brief Introduction of Shariah-Compliant Securities
28
Advisory Council of the SC (“SAC”).
� The SAC reviews the status of Shariah-compliant securities on a semi-
annual basis and will update its list of Shariah-compliant securities in the
month of May and November of each calendar year.
� The SAC reviews the Shariah-compliant securities through their annual
financial reports, obtaining of detailed company information and specific
inquiries made to the respective companies management.
� New applicant seeking for listing on Bursa Securities may apply to the
SAC for the recognition of its securities as Shariah-compliant securities.
With the Shariah compliant status, the applicant will be able to offer their
securities to a wider spectrum of investors pursuant to its IPO including
the funds from the Middle East region.
� The availability of Shariah-compliant securities led to the introduction of
the Islamic equity index. This is to meet the demands of local and
Shariah-Compliant Securities
Brief Introduction of Shariah-Compliant Securities (cont’d)
29
the Islamic equity index. This is to meet the demands of local and
foreign investors who seek to invest in securities which are consistent
with the Shariah principles. This index facilitates the tracking and
benchmarking of the performance of Shariah-compliant securities listed
on Bursa Securities.
� The current Islamic equity index is FBM Hijrah Shariah Index.
� The SAC has applied a standard criterion in focusing on the activities of thecompanies listed on Bursa Securities.
� Generally, companies will be labeled as Shariah-compliant if they are not principallyinvolved in the following core activities:-
• Financing services based on riba (Interest);
• Gambling and gaming;
• Manufacture and sale of non-halal products or related products;
• Conventional insurance;
Shariah-Compliant Securities
Shariah non-permissible activities
30
• Conventional insurance;
• Entertainment activities that are non permissible according to Shariah;
• Manufacture or sales of tobacco-based products or related products;
• Stockbroking or share trading in Shariah non-compliant securities; and
• Other activities deemed non-permissible according to Shariah.
� Interest income derived from conventional fixed deposit (“FD”) or other interestbearing instruments, and dividends received from investment in Shariah non-compliant securities are being considered in determining the Shariah conformity.
� For companies with activities comprising both permissible and non-
permissible elements, the SAC considers 2 additional criteria:-
i. Public perception or image of the company must be good; and
ii. Core activities of the company are important and considered maslahah
(“benefit” in general) to the Muslim ummah (nation) and the country, and the
non-permissible element is very small and involves matters such as umum
balwa (common plight and difficult to avoid), uruf (custom), and the rights of the
non-Muslim community which are accepted by Islam.
Shariah-Compliant Securities
Shariah-compliant criteria
31
non-Muslim community which are accepted by Islam.
� To determine the tolerable level of mixed contributions from permissible and
non-permissible activities towards the turnover and profit before tax of a
company, the SAC has established several benchmarks based on the
ijtihad (reasoning from the source of Shariah by qualified Shariah Scholars).
If the contributions from non-permissible activities exceed the benchmark,
the securities of the company will be classified as Shariah non-compliant.
Benchmark Description Examples:-
5% To assess the level of mixed contributions
from the activities that are clearly prohibited.
Riba (interest-based companies
like conventional banks),
gambling, liquor and pork.
10% To assess the level of mixed contributions
from the activities involving element of umum
balwa which is a prohibited element affecting
FD’s interest income in
conventional banks and
tobacco-related activities.
The benchmarks are as follows:-
Shariah-Compliant Securities
Shariah Benchmark
32
balwa which is a prohibited element affecting
most people and difficult to avoid.
tobacco-related activities.
20% To assess the level of contribution of rental
payment from Shariah non-compliant
activities.
Rental of premises that involved
in gambling and sale of liquor.
25% To assess the level of mixed contributions
from activities generally accepted by Shariah
and involve maslahah element but there are
other elements which may affect the Shariah
status of these activities.
Hotel and resort operations,
share trading and stockbroking.
Main Market / ACE
Market
Shariah-compliant
securities
Total securities % of Shariah-
compliant
securities
Consumer products 126 135 93
Industrial products 280 290 97
Mining 1 1 100
Construction 48 50 96
Trading / Services 171 199 86
Shariah-Compliant Securities
Shariah-compliant securities on Bursa Securities as at 23 November 2009
33
Trading / Services 171 199 86
Properties 73 88 83
Plantation 38 43 88
Technology 98 101 97
Infrastructure (IPC) 6 7 86
Finance 5 40 13
Hotels Nil 4 Nil
Closed-end fund Nil 1 Nil
Total 846 959 88
Shariah-complaint securities1. UMW Holding Bhd
2. Y.S.P. Southeast Asia Holding Bhd
3. Hume Industries (Malaysia) Bhd
4. Lafarge Malayan Cement Bhd
5. IJM Corporation Bhd
6. YTL Corporation Bhd
7. Muhibbah Engineering (M) Bhd
8. Maxis Bhd
9. Axiata Group Bhd
10. UEM Land Holdings Bhd
Shariah non-compliant securities1. Genting Bhd
2. Berjaya Sports Toto Bhd
3. Allianz Malaysia Bhd
4. Shangri-La Hotels (Malaysia) Bhd
5. Hong Leong Financial Group Bhd
6. Pan Malaysia Corporation Bhd
Shariah-Compliant Securities
Examples of Shariah-compliant securities & Shariah non-compliant securities
34
10. UEM Land Holdings Bhd
11. TH Plantation Bhd
12. IOI Corporation Bhd
13. AirAsia Bhd
14. BIMB Holdings Bhd
15. Syarikat Takaful Malaysia Bhd
16. AsiaEP Bhd
17. Stemlife Bhd
18. Tamco Corporate Holdings Bhd
19. LNG Resources Bhd
20. Mikro MSC Bhd
Thank You & Wassalam
35
The information contained in this presentation may be meaningful only with the oral presentation and are of the personal
view of the presenter and does not necessarily represent an official opinion of Bank Islam Malaysia Berhad.
For further information, please contact:
Lim Shueh Li
Head of Corporate Finance Department
Corporate Investment Banking
Bank Islam Malaysia Berhad
Email: shuehli@bankislam.com.my
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