SC Grants M-REITs Temporary Increase in Gearing Limit
12 August 2020   |   Kuala Lumpur

The Securities Commission Malaysia (SC) announced today that it will temporarily increase the gearing limit for Malaysian real estate investment trusts (M-REITs) from 50% to 60%, effective immediately, until 31 December 2022.

The temporary increase in gearing limit will provide M-REITs greater cash flow flexibility and allow M-REIT managers to manage their REIT’s debt and capital structures more efficiently, especially in light of the challenging operating environment during the COVID-19 pandemic.

Notwithstanding the temporary increase in gearing limit, the SC expects managers of M-REITs to consider sustainability of the REIT and best interests of unit holders, before taking on any additional debt.

As the financial system adjusts to the impact of Covid-19, the SC continues to monitor the evolving situation in global and domestic markets, to calibrate its responses and update the public accordingly.

The regulator has already introduced an array of measures to assist capital market participants and the industry. The full list of measures can be found on
SC-World Bank-IOSCO Asia Pacific Hub Conference 2019: Enhancing Financial Inclusion through Islamic Finance and FinTech
(From left to right):
  1. Abayomi A. Alawode, Head of Islamic Finance, Finance, Competitiveness and Innovation, The World Bank Group
  2. Datuk Syed Zaid Albar, Chairman of the Securities Commission Malaysia (SC)
  3. Dr. Firas Raad, Country Manager for Malaysia, East Asia and Pacific, The World Bank Group 
  4. Datuk Zainal Izlan Zainal Abidin, Deputy Chief Executive of SC
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