RM500 mln Sukuk Prihatin launched

Malaysia’s first digital sukuk, the RM500 million Sukuk Prihatin under the National Economic Recovery Plan (Penjana), was launched at the Ministry of Finance in Putrajaya today.

The launch was witnessed by the Yang di-Pertuan Agong Sultan Abdullah Sultan Ahmad Shah, Prime Minister Muhyiddin Yassin, and Finance Minister Tengku Zafrul Abdul Aziz.

Muhyiddin said in his speech that the issuance of the sukuk follows requests from various quarters to support the country’s economic recovery from the Covid-19 pandemic.

He added that the sukuk can be subscribed to online by the public as well as the corporate sector.

"I am moved as the government has received offers from honest and sincere people who want to support the government’s efforts to revive the country’s economy," he said.

Muhyiddin said the proceeds from the sukuk will be channelled to several initiatives that have been identified, including improving connectivity for rural schools, funding grants for research into infectious diseases, and financing micro-small and medium enterprises, especially women entrepreneurs.

At the event, the Yang di-Pertuan Agong consented to become the sukuk’s first investor.

Sukuk Prihatin, which is a Syariah-compliant investment instrument, can be subscribed to, starting with RM500 with a profit rate of two percent per annum, for two years. There is no maximum limit to its subscription.

The subscription period starts today until Sept 17, with profit to be paid every quarter of the year and is tax exempted. It can be subscribed only through digital banking services, using JomPAY and DuitNow facilities.

The Shared Prosperity Vision plan.

Meanwhile, Muhyiddin also explained that the Sukuk Prihatin initiative is in line with the "Shared Prosperity Vision" and is part of an approach that would benefit the most target groups that have been worst affected by Covid-19.

The three focuses of the Shared Prosperity Vision are to restructure the economy by ensuring development for all, addressing inequality by bridging the income gap, and building the country towards a united, prosperous, and dignified nation.

“I am confident that this noble effort will ensure the people get to enjoy a decent standard of living through the best approach through cooperation between the government and the people," he added.

- Bernama