Cost of Funds Increasing In the previous article on the new Malaysian dilemma, I mentioned that the cost of funds for the Malaysian government would rise in the near future. This is already happening in Indonesia. Bloomberg posted an article yesterday stating Indonesian yields (profit rates) for sukuk bonds have nearly doubled since November 2012, from 3.3% to 6.125%: [Indonesia] issued the notes due in 5.5 years to yield 6.125 percent, according to a person familiar with the sale who asked not to be identified as the matter is private…. The country last offered global Islamic paper in November, selling $1 billion of 10-year securities at a record-low yield of 3.3 percent. http://www.bloomberg.com/news/2013-09-10/indonesia-sells-1-5-billion-of-sukuk-at-highest-rate-since-2009.html Investment Note: How will this affect you? Malaysian bank interest rates will be under pressure to rise in the coming months. By John Lim| 2020-03-29T00:41:01+00:00 11th September, 2013|Insights| About the Author: John Lim John is an award-winning technopreneur with many years of experience in software development. He is the co-founder and CTO of JurisTech. Related Posts Exciting Opportunities With Generative AI in Digital Onboarding 23rd July, 2024 Everything You Need To Know About Composite AI In The Financial Industry 5th July, 2024 Why the Financial Industry Uses Low-code/No-code APIs Now 21st June, 2024