RHB LAUNCHES MALAYSIA'S FIRST ISLAMIC INSTITUTIONAL STOCKBROKING SERVICE

18 June 2003, Kuala Lumpur-RHB Securities Sdn Bhd ("RHB Securities") yesterday launched Malaysia's first Islamic Institutional Stockbroking service. This pre-compliant stockbroking platform was developed in response to the increasingly stronger demand for Islamic equity products in Malaysia.

Speaking at the launch ceremony, Dato' Sri Sulaiman Abdul Rahman Taib, Executive Chairman of Rashid Hussain Bhd ("RHB") said, "Today there is a greater demand for Syariah compliant investment, and RHB Securities designed this Islamic Institutional Stockbroking service specifically to meet the increasingly sophisticated needs of institutional investors."

The growth of Malaysia's Islamic Capital Market has surpassed earlier expectations. As of April 30, 2003, assets mobilised by the Islamic banking sector have increased to RM72bil, accounting for a market share of 9.2 percent of the domestic banking system.

Issuance of Islamic bonds has also expanded steadily, at an average rate of 42.8 percent since 1995. In 2002, RM13.8bil worth of Islamic bonds was issued, constituting 52 percent of the total issuance of debt securities, surpassing conventional bonds.

Dato' Sri Sulaiman also added that RHB was now focusing on formulating innovation not just into financial products or instruments, but also the financial system supporting these products to ensure a Syariah-compliant system. "RHB intends to play a leading role in support of government efforts to turn Malaysia into a regional financial hub for Islamic banking and finance," he said.

Issued by RHB Public Affairs & Communications. For further information, please contact Celina May Ong at Tel:03-92802535.