How tenure of Sukuk issuances impacts the economic growth in Malaysia?

• Main Authors: Mohd Zaki Fadzil, Siti Sarah, Che Arshad, Noraziah
• Format: Article
• Language: English
• Published: 2019
• Subjects: HF5601 Accounting
• Online Access: http://repo.uum.edu.my/26794/1/AIJBAF%201%201%202019%201%2012.pdf; http://repo.uum.edu.my/26794/; http://doi.org/10.35631/aijbaf.11001
• Institution: Universiti Utara Malaysia

The present paper analyses the impact of Sukuk issuances on the economic growth of Malaysia over a period of 10 years from 2008 to 2017 on a yearly basis. There are six different types of Sukuk issuances which includes the long-term government/treasury/central bank (LGTC), long-term corporate (LCTE), long-term agency (LAGY), short-term government/treasury/central bank (SGTC), short-term corporate (SCTE) and short-term agency (SAGY) with the presences of the moderating variable which is the exchange rate (ER). The 10 years’ time-series data were analyzed by using the diagnostic test, unit root test and multiple regression analysis. The outcome of the study indicates that with the presence of the ER, LCTE, SGTC, SCTE, and SAGY found to have a significant and positive relationship with the economic growth (GDP) of Malaysia. However, LGTC found not to be significant but shows a positive relationship with the GDP in Malaysia, whilst LAGY is found to be significant but shows a negative relationship with the GDP in Malaysia. Therefore, the Sukuk issuances give an impact on the economic growth of Malaysia, whereby with the presences of the moderating variable, the long-term and short-term Sukuk issuances can spur the economic growth of Malaysia.