3107 3rd INTERNATIONAL CONFERENCE ON BUSINESS AND ECONOMIC RESEARCH ( 3rd ICBER 2012 ) PROCEEDING 12 - 13 MARCH 2012. GOLDEN FLOWER HOTEL, BANDUNG, INDONESIA ISBN: 978-967-5705-05-2. WEBSITE: www.internationalconference.com.my SUKUK IN MALAYSIAN CAPITAL MARKET Noriza Binti Mohd Saad Department of Finance & Economics Universiti Tenaga Nasional (UNITEN) 26700 Muadzam Shah, Pahang, Malaysia. noriza@uniten.edu.my Nor Edi Azhar Binti Mohamad Department of Finance & Economics Universiti Tenaga Nasional (UNITEN) 26700 Muadzam Shah, Pahang, Malaysia. NorEdi@uniten.edu.my ABSTRACT Nowadays, an investment in Islamic capital market in Malaysia was highly demanding not only by listed firms but also unlisted firms. Throughout this issue, this study is motivated to trigger off the performance of sukuk issued by listed company (49 companies for period of 2005-2010) based on their sectors or industries towards sukuk features. On the other hand, multivariate regression model has been applied to investigate the relationship between sukuk yield and its features. Secondary data are gathered from Bank Negara Info Bond Hub website and Rating Agency Malaysia (RAM) for such a sukuk features. The results revealed that there is a statistically significant relationship among variables and most of the listed issuer was issued sukuk Al-Bai-Bitaman Ajil (BBA) (68%) as compared to others sukuk structure whereby majority the issuer listed firms comes from infrastructure and utilities sector (53%). The listed firms should issue sukuk since it was proven can generate high yield besides highly demanding in global capital market not only by muslim community but also non muslims. Field of Research: Islamic Capital Market, Sukuk, Yield, Sukuk Features ----------------------------------------------------------------------------------------------------------------------------------