The 2009 and onwards. According to Ahmad and Radzi

The
Malaysian government has started to develop the Islamic Capital Market in the
year of 2009, which has contributed to the better performance of Sukuk in
Malaysia. Tax incentives aimed at developing the Islamic Capital Market were
offered in the 2009 Budget. The fees and profit earned by institutions
undertaking activities such as underwriting and trading Sukuk issued in
Malaysia and also distributed outside Malaysia will be exempted from tax.
Besides, one of the efforts made by government to promote the Sukuk market is
to exempt tax for special purpose vehicle (SPV) that has been set up for
Islamic financing. In addition, deduction on the cost of issuance of the Sukuk
incurred by the SPV will be given to the company that established the SPV
(Razazila, Roudaki & Clark, 2010). These incentives provided have attracted
more investors especially those non-Muslims to invest in Sukuk and also
attracted more issuers to issue Sukuk in acquiring funds. Therefore, efforts
made by Malaysia government have greatly contributed to the outperforming
performance of Sukuk compared to conventional bonds from the year 2009 and
onwards.

According to
Ahmad and Radzi (2011), they found out that conventional bond is less
susceptible to the economic conditions which suggest that performance of
conventional bond is less affected by the economic conditions. The result is
consistent with the findings of Ahmad and Radzi (2011).It can be seen that the
coefficients of all independent variable from the result of this study that
affecting the performance of Sukuk index are greater compare to conventional
bond index.

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When inflation
increases by 1% point, the conventional bond index will be reduced by only
0.71% point while Sukuk index will be reduced by 0.98%point. Furthermore, when
interest rate increases by 1% point, the conventional bond index will be
reduced by 10.9% point while Sukuk index will be reduced by 13.62% point. When
the GDP increases by 1%, the Sukuk index will be increased by 0.71% while
conventional bond index will only increase by 0.60%. In addition, conventional
bond index will increase 0.38% while Sukuk index will increase by 0.47% when
openness of trade increases by 1%. Therefore, it can be said that macroeconomic
conditions have a greater influence on the performance of Sukuk during the
period of 2007 until 2014 based on the result of this study. In other word,
performance of conventional bond is less affected by macroeconomic conditions
compared to Sukuk in Malaysia.