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RAM Holdings Bhd
expects a lower volume of corporate bonds worth RM40bil this year from about
RM63bil last year, due to the less-then-favourable economic factors. RAM
Rating Services Bhd managing director and chief executive officer Wong Fook
Wah said the sector, however, had a ?good start? to the year.
?In the first quarter,
RM12bil worth of bonds were issued, so it is a good start to the year,? he
told reporters after the company AGM yesterday. RAM Rating Services is a
wholly owned subsidiary of RAM. Wong said moving forward, the market would
be driven by demand from the region. ?Some of these potential issuers are
waiting to see a clearer picture before they decide on the next move.
?If things improve for the rest of the year, whether global or local, you
might find them coming back into the market,? Wong added. He said the
anticipated rise in the number of foreign issues and increasing interest in
the sukuk segment would continue to drive the domestic bond market.
?Credit demand is expected to be fairly robust, given the projected private
investments in the services, construction, infrastructure and
utilities-related sectors,? said Wong. He added that RAM had projected a
5.9% gross domestic product growth for Malaysia this year, followed by 5.8%
next year.
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