Dubai Debt default, Malaysian companies with exposure to Dubai

From Finance Yahoo(AP):

Sentiment in stocks has been dented by the news that Dubai World, which is thought to have debts totaling around $60 billion, has asked creditors if it can postpone its forthcoming payments until May. That has stoked fears of a potential default and contagion around the global financial system, particularly in emerging markets.

"Certainly the Dubai debt debacle and the uncertainty that it has created has had a severe knock on effect," said David Buik, markets analyst at BGC Partners.

Kit Juckes, chief economist at ECU Group, said the developments in Dubai and in the currency markets are related as the fall in risk appetite has pushed money into government bonds and into safe haven currencies such as the Swiss franc and the yen.

This, he said, is "testing the tolerance of central banks to see their currencies cause further damage to their economies."

Even if Dubai were to get a bailout from the UAE, the Dubai CDS would be paid in full. Malaysia is majorly affected by this debacle. A big part of the Nusajaya development is with Dubai World! Whoever said islamic debt was safe, weren't affected by the crisis must be really smoking something.

In addition to direct effect, Malaysia is the top country for Islamic Finance. The financial industry will surely be affected.