Cagamas, the National Mortgage Corporation of Malaysia: Housing the Nation

*Available in digital version only
09 Oct 2018
This case is about Cagamas Berhad (Cagamas), the National Mortgage Corporation of Malaysia established in 1986, and its success in promoting the broader spread of home ownership in Malaysia through growth of the secondary mortgage market and introduction of a range of instruments. It describes the strategy employed to build a sustainable business model of a secondary mortgage liquidity facility while providing support to house the nation. Over the years Cagamas’ role as a financial intermediary has expanded to serve both the financial and public sectors in provision of liquidity, capital and risk management solutions. Cagamas has innovated successfully to launch products and services both in conventional and Islamic finance markets in both the domestic and international space. In 2009 the Cagamas model was regarded by the World Bank as the largest and most successful secondary mortgage liquidity facility. Today, although competition is increasing, Cagamas is still one of the leading issuers in the global sukuk market.