The Malaysian Ministry of Finance announced the issuance of Sukuk Prihatin, under the National Economic Recovery Plan (PENJANA). The ministry also says this is the country’s first digital sukuk, or syariah-compliant bond.
According to the ministry, the total target issuance is RM500 million, with a return rate of 2% per annum and a maturity period of two years. Payments are also tax-exempt, and will be made on a quarterly basis. You’ll have to invest a minimum of RM500, with no upper limit. This can be done via JomPay or DuitNow. Maybank will be the primary distribution bank for this.
Sukuk Prihatin, sebuah inisiatif di bawah Pelan Jana Semula Ekonomi Negara (PENJANA), membuka peluang kepada Rakyat untuk usaha membina semula Negara pasca krisis pandemik COVID-19.#KitaUntukKita #SukukPrihatin pic.twitter.com/DnfUgUIIHD
— Tengku Zafrul 🇲🇾 (@tzafrul_aziz) August 18, 2020
The Ministry of Finance says that the sukuk is established to allow various parties to contribute to the country’s recovery efforts. Proceeds will go to the Kumpulan Wang COVID-19, which will then go to various economic recovery measures. This ranges from enhancing connectivity to rural schools, supporting research grants for infectious diseases, and financing micro SMEs, among others.
Beyond being over the age of 18, there doesn’t seem to be any other restrictions to eligibility for this sukuk. There is also the option of donating the principal amount upon the two-year maturity of the sukuk, which will then be eligible for tax exemption. The Sukuk Prihatin offer period is between 18 and to 17 September, and allocation is on a first-come, first-serve basis.
(Source: Ministry of Finance)