Journal of Emerging Economies and Islamic Research
Connectivity within Association of Southeast Asian nation (ASEAN) member countries becomes a central issue in view of the ASEAN Economic Community 2015. However, progress towards ASEAN connectivity especially for infrastructure developments has been limited. One of the problems is the resource mobilization for project financing. In recent years, rising demand for Islamic securities among global investors in jurisdictions where legal framework and financial infrastructure are well established has made sukuk a cost effective and preferred method of raising finance. It has also attracted liquidity to and has made Malaysia a leading global sukuk issuer and a leading Islamic financial hub. This paper is a case study on how Malaysia has used the Public-private partnership (PPP) for infrastructure development and how this has extended into Islamic financing and further examines how this model can be expanded into other ASEAN member countries in particular the Cambodia, Vietnam, Laos and Myanmar (CVLM) countries where issues of infrastructure financing is critical and need to be quickly resolved in view of an enhanced ASEAN connectivity and the future of an ASEAN community development.