Malaysian government hails ‘solidarity’ of population for supporting Sukuk scheme

25 Sep 20

Malaysia’s government has praised the “solidarity and cooperation” of its people after a Sukuk scheme to help finance its economic recovery was oversubscribed.

 

The scheme, known as Sukuk Prihatin, was set up by the government “to provide an opportunity for the rakyat [general population] to contribute to the nation’s rebuilding efforts”, finance minister Tengku Zafrul Aziz said.

It registered a total subscription of more than 666m ringgit (£126m), surpassing its 500m ringgit (£94m) target, and in response to the demand, the government increased the total issuance by the additional 166m ringgit.

Proceeds will be used to help Malaysia deal with and recover from the Covid-19 pandemic, funding measures such as enhancing connectivity to rural schools, supporting research into infectious diseases and financing small-scale entrepreneurs.

“The oversubscription and successful issuance of Sukuk Prihatin is testament to Malaysians’ solidarity and cooperation in facing this challenging period, in line with the Malaysia Prihatin spirit,” said the minister.

“The government believes that embodying the spirit of ‘we are all in this together’ is what makes Malaysia a stronger nation.”

The Sukuk – a sharia-friendly form of raising money, similar to a bond – was issued on 22 September with a maturity period of two years and offering a profit rate of 2% per year.

It was the first of its kind in Malaysia, having been issued through the digital platforms of 27 banks.

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