Impact of macroeconomic factors on Sukuk issuance in Malaysia / Nurul Huda Muzafar

The flourishing of issuing in Sukuk has been accelerates in recent years. It has been widely accepted and issued by a lot of countries globally, and Malaysia has been leading in Sukuk issuance, defeating all other countries. As the economy of the world keeps on changing and varying throughout the years, there are shifting in macroeconomic factors as well. That includes our country, Malaysia. Therefore, the aim of this study is to investigate the effects of macroeconomic factors on the Sukuk issuance in Malaysia for 11 years, from the year 2010 until 2020. In this study, we will identify the impacts of gross domestic products (GDP), national income, inflation rate, interest rate and fuel exports towards the issuance of Sukuk in our nation. Malaysia. We applied the Ordinary Least Square method for this research in order to obtain the results of the study. Results obtained for this study indicate that GDP, GNI and inflation rate have insignificant impacts towards issuance of Sukuk. Whereby, the independent variables of interest rate and fuel exports have significant impacts towards Sukuk issuance in Malaysia.