KUALA LUMPUR, Aug 20 ― The Malaysian government on Monday launched the Sukuk Prihatin with the target of raising RM500 million to aid the country’s economic recovery amid the Covid-19 pandemic, by opening up an opportunity to Malaysian individuals and companies to invest in the Shariah-compliant investment instrument or Islamic bond through the lending of their money to the government for two years.

Beyond helping with the government’s efforts in rebuilding the economy after the Covid-19 pandemic, Malaysians who choose to put money into Sukuk Prihatin will be able to get back the principal or initial sum at the end of the two years, along with profits at a fixed rate every three months during the two-year period.

Below is a quick highlight and summary of some of the key points in the government’s 61-page knowledge pack on Sukuk Prihatin:

1. What is it?

The government is the issuer of Sukuk Prihatin, which means the government has a direct obligation to the investor for the principal and the profit payments. The Sukuk Prihatin is a one-off issuance by the government.

It is poised as a gateway for Malaysians to unite and join in Malaysia’s economic recovery measures, with the knowledge pack stating: “Themed ‘Forwarding The Nation’s Future Together’ and #KitaUntukKita, the Sukuk Prihatin will carry nationalistic and patriotic elements to rally fellow Malaysians to participate in rebuilding the economy and the nation while enduring Covid-19 crisis.”

2. Who is it for?

To be eligible to invest in Sukuk Prihatin, you have to either be a Malaysian aged at least 18; or a company incorporated in Malaysia; or a cooperative, foundation, sole proprietor, partnership, association or other incorporated bodies operating in Malaysia. A registered trustee can act on behalf of any of the previous three categories, but will not be able to enjoy tax exemptions related to the Sukuk Prihatin.

With Sukuk Prihatin having a short two-year tenure, it is stated to be suitable for investors who “wish to diversify their investment portfolio and are comfortable taking a short-term risk with a minimum return on investments”.

3. How do you apply?

This is Malaysia’s first-ever digital sukuk, which means investors can apply during the subscription period from August 18 to September 17 to invest in Sukuk Prihatin via internet or mobile banking through the JomPAY and DuitNow platforms, depending on the banks involved.

Since Sukuk Prihatin is being offered fully digitally, applications cannot be made over the counter or through the ATM with such applications to be rejected and refunded.

There are 27 participating banks for both corporate and retail investors, with some either offering JomPAY or DuitNow e-channels or both.

Specifically for retail investors, they can subscribe to the sukuk via the internet or mobile banking through their accounts at: Affin Bank, Agrobank, Alliance Bank, Al-Rajhi Bank, AmBank, Bank Islam, Bank Muamalat, CIMB, Hong Leong Bank, Maybank, MBSB, Public Bank, RHB, Bank Rakyat, Bank Simpanan Nasional, Bank of China (Malaysia) Berhad, Citibank, HSBC, ICBC Bank, OCBC Bank, Standard Chartered Bank, or United Overseas Bank (Malaysia) Berhad.

But applications to subscribe to Sukuk Prihatin will be reviewed to see if all requirements have been met, with applicants to be informed 14 days after the offering period on whether they were successful and with refunds of the money to be done within five days if an applicant is unsuccessful.

4. How much is the minimum and maximum investment amount?

You can apply more than once to invest in Sukuk Prihatin which is on a first-come-first-served basis.

But the condition is that you have to use the same bank account to apply, and with each application to be at least a minimum of RM500 and in multiples of RM100. There is no maximum limit for how much can be invested.

What this means is if you were to apply to invest RM610 in Sukuk Prihatin, RM10 will be refunded to your account within five business days as only multiples of RM100 are allowed.

If you then decide to make another application to invest RM400 or any other amount below RM500, that would not be possible and you will need to top it up to at least RM500 when applying to avoid your application being rejected.

Only applications made from the bank account for the first application will be accepted, while subsequent applications from other bank accounts from the same or different bank will be rejected and refunded.

Make sure you will not need the money that you invested in Sukuk Prihatin for two years, as investors are not allowed to redeem or take the money out before the sukuk’s maturity date and with all such investments required to be held until the end of the two-year period.

You can’t sell off your holding in Sukuk Prihatin or transfer or assign it, which means you have to hold the sukuk which you bought until its maturity date of September 22, 2022.

(With lots sizes of RM100 and a minimum RM500 amount, Sukuk Prihatin is different from the traditional sukuk where institutional investors would have to invest in standard lot sizes of RM5 million.)

5. How much would you get in return for your investment?

At a fixed profit rate of 2 per cent per annum, putting in RM1,000 into Sukuk Prihatin will translate into a RM20 profit per year, which will then be paid to you in four tranches of RM5 for each quarter in a year.

At the same profit rate, putting in RM10,000 would mean a total profit of RM200 per year, which will then be divided into four to be paid to you in sums of RM50 for each quarter or every three months.

If the Sukuk Prihatin’s issue date is September 22, 2020, the first time you will receive your profit payment will be on December 22, 2020.

The government will continue to pay the profit payments to you every quarter until the end of the two-year period for Sukuk Prihatin (September 22, 2022), which will be also when you get your initial investment sum or principal back, unless you choose to donate either all or some of the principal to the government for spending related to Covid-19.

For example, if you decide to waive RM3,000 of your RM10,000 initial investment sum at the end of the two years, you will get RM7,000 back while the RM3,000 will go to a government-approved trust account.

The profit is tax-exempted but you will have to keep the monthly e-statement for Sukuk Prihatin for such purposes, while the waived or contributed amount will be tax-deductible.

You can choose whether to waive your principal when making the application, and can decide in the final quarter whether to change your decision or change the amount you wish to waive or contribute.

6. What will the funds be used for

According to the knowledge pack, the proceeds from Sukuk Prihatin will go to the Kumpulan Wang Covid-19 to fund measures announced in the government’s economic stimulus packages and recovery plan to address the Covid-19 crisis.

Examples of such measures include medical spending related to Covid-19, financing or grants for micro and small and medium enterprises especially women entrepreneurs, grants for research for infectious diseases, and improving connectivity to rural schools which will act as hubs to connect nearby villages, the government said.\

https://www.malaymail.com/news/malaysia/202...-yourse/1895447

__________________________________________________________________________________________________________________________



KUALA LUMPUR, Aug 17 — The Ministry of Finance (MoF) is expected to announce the issuance of Sukuk Prihatin, Malaysia’s first digital sukuk, amounting to RM500 million under the National Economic Recovery Plan (Penjana) in a ceremony tomorrow.

The MoF, in a statement today, said the opening ceremony of Sukuk Prihatin will be officiated by Prime Minister Tan Sri Muhyiddin Yassin and Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

The ceremony will be graced by the Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.

The ministry said the issuance of shariah-compliant Sukuk resulted from requests from various parties in their quest to assist in the country’s recovery efforts.

The Sukuk Prihatin issuance will be channelled to a number of initiatives that have been identified, including increasing connectivity for rural schools, accommodating research grants for infectious diseases, and financing micro-small and medium enterprises (MSMEs), especially women entrepreneurs, the statement said. — Bernama

https://www.malaymail.com/news/money/2020/0...obox=1597664590

Where to subscribe:

1) Maybank?
2) Hong Leong
3) BSN

Subscription period: 18th August to 17th September 2020.

This post has been edited by zstan: Aug 21 2020, 02:25 PM

Those with deep pockets probably can aim for this tomorrow. Interesting to see rates.

RM500 million....
kwsp take some
kwap take some
TH take some
affinhwang, Maybank, Cimb, PBB, HLB, kenanga, Eastspring, and other banks with asset mgmt fund houses each take some.....very fast no more...

That's true. Hopefully retailers got chance haha

I kinda doubt they'll take any. If the government needed their funds, they would have just issued normal MGS/GII.

I remember this Sukuk Prihatin is more charity then profit. Probably is zero coupon and is not issued and discount. I'm guessing

you are right...
as mentioned on 10 June 2020....

Sukuk Prihatin untuk kebajikan, bukan untuk pulangan

PUTRAJAYA: Rancangan menerbitkan Sukuk Prihatin bernilai RM500 juta bukan sebagai instrumen pelaburan pulangan tinggi tetapi adalah untuk memberi peluang kepada rakyat berkemampuan menyertai kerajaan membantu golongan terjejas ekoran pandemik COVID-19, demikian kata Menteri Kewangan, Tengku Datuk Seri Zafrul Tengku Abdul Aziz.

Beliau menjelaskan, bon Islam yang dijangkakan diterbitkan pada suku ketiga 2020 itu, bertujuan untuk kebajikan dan bukan bermotifkan keuntungan, jadi kadar pulangan adalah lebih rendah berbanding instrumen pelaburan lain termasuk Sekuriti Kerajaan Malaysia (MGS).

Malah, katanya, mereka yang ingin melanggan sukuk berkenaan akan diberi pilihan untuk tidak menerima pulangan dan pembayaran balik modal atau prinsipal apabila ia matang kelak.

"Ia (terbitan Sukuk Prihatin) bukan untuk anda (pelabur) mendapat pulangan. Ia untuk membantu orang yang terjejas. Rancangannya untuk memberi peluang kepada rakyat Malaysia yang berkemampuan untuk menolong rakyat Malaysia yang terjejas dan terkesan kerana COVID-19," katanya.

https://www.bharian.com.my/berita/nasional/...-untuk-pulangan

This post has been edited by MUM: Aug 17 2020, 11:28 PM

Interesting. So this is a legitimate tabung Harapan?

How to get it?

Two-year RM500m Prihatin sukuk launched with 2% annual profit rate

KUALA LUMPUR (Aug 18): The Sukuk Prihatin programme, touted as the first ever digital sukuk in Malaysia, was launched today as part of the government’s National Economic Recovery Plan (Penjana).

The sukuk, which is based on the principle of Tawarruq via the Commodity Murabahah arrangement, has a total target issuance of RM500 million with a maturity period of two years, said the Ministry of Finance (MoF) in a statement today.

It offers a profit rate of 2% per annum, which will be paid on a quarterly basis and will be exempted from tax.

“The syariah-compliant sukuk issuance is established in response to requests by various parties to contribute towards the country's recovery efforts. To that end, the government decided that the sukuk issuance is a transparent and appropriate instrument in response to those requests,” said the MoF.

“Sukuk holders have the option of donating the principal amount upon its two-year maturity.

"Proceeds from the Sukuk Prihatin will be channelled to the Kumpulan Wang Covid-19 for the implementation of economic recovery measures that include, among others, enhancing connectivity to rural schools, supporting research grants for infectious diseases, and financing micro SMEs, particularly women entrepreneurs,” it added.

The programme is open to Malaysians aged 18 years and above. They may subscribe to the programme through JomPay or DuitNow, which are accessible through the mobile banking platforms of 27 participating banks in Malaysia.

Maybank is the main distribution bank for this sukuk. The sukuk will be distributed on a first-come first-served basis, and is available from Aug 18 to Sept 17.

Interested parties can take part in the programme with a minimum RM500 investment.

The sukuk programme was launched by Prime Minister Tan Sri Muhyiddin Yassin in a ceremony witnessed by the Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah Ibni Almarhum Sultan Haji Ahmad Shah Al-Musta'in Billah.

https://www.theedgemarkets.com/article/twoy...ual-profit-rate

2% only... It's indeed priced correctly between the current 1-year and 3-years MGS yield. https://www.investing.com/markets/malaysia



Anyway, is there a secondary market?



This post has been edited by TOS: Aug 18 2020, 12:08 PM

Oooo not bad. Same rate as FD. not zero returns at least.

2% per annum is not bad. At least got some returns, though the normal government bonds with equivalent tenor has coupons of around 3% - 4%

If sukuk prihatin can be made to subscribe so easily, I wish the same can be done for the other Government bonds like the MGS and MGII. Probably just need to build a robust secondary market platform and retail player can finally enter the bond market rd.

Still for country, I might subscribe RM500. Though I prefer to keep the principal

damn... was expecting better rate. Long time no see sukuk since the last one by bijan.

this is more legit to 'help' the country than the dubious Tabung Harapan.

careful...if politized...
"more legit" is the word used by the beholder or its supporters...
for the opposite camp will said....what is legit when it came from the backdoor?

2% only, I think put in ASNB better. I expect them to still give at least 4% this year.

LOL... Testing123

This post has been edited by IamNOT: Aug 18 2020, 03:52 PM

well it's true. this sukuk is for all to see and vet through. tabung harapan already up in smokes.

eh how u bought

What is the meaning of " rights to waive the principal
upon maturity"?

If the money keep inside the fund without withdraw at the maturity, what will the government use for the fund since the fund already ended (one-off sukuk)?

https://www.hlb.com.my/en/connect/sukuk-prihatin-tnc-en.html

OH LOL

it's the actual website. thought you trolling

tabung harapan is "donation",...where you contribute without expecting anything but just for the "shiok" of it....and tax deductible.
this sukuk is the same expectation too?

Actual website only punny ma...

Sukuk PRIHATIN T&C:

https://av.sc.com/my/content/docs/my-gom-su...prihatin-tc.pdf

Sukuk PRIHATIN Knowledge Pack:

https://av.sc.com/my/content/docs/my-gom-su...wledge-pack.pdf

This post has been edited by GrumpyNooby: Aug 18 2020, 07:53 PM

why would anybody choose this 2% pa for 2 years over regular FD? unless one is expecting OPR to further drop for the next 2 years

Because of the minimum amount needed? RM500 to join this, nobody cares about return. Join for fun.

hmm, rm500 vs rm1000 for fd, okay la

It means you agreed to donate the principal for the government to help the economy, and the sum can be used for tax deduction, same treatment as donations.

Already said this is not for profit.

And 2% is fair, if OPR drops again you might come out on top

Ah that's a good point. God knows how much more will be cut.

Assuming the bonds are issued at par, then the yield is actually not bad and is even slightly better then existing sukuk of the same tenure too


These bonds are non-trad-able, so no secondary markets unfortunately

haha even worse

I see. Thanks. Checked out the FAQ sheet as well.

The non-tradable provision is very disturbing. What happens if interest rate rises above 2% 1-2 years later? If bonds can be traded, market can price in accordingly (by selling the bond in secondary market until yield goes up to market-clearing level), but with non-tradable provision, you are stuck with low rate. Can't even sell back to government before maturity. A 2% return for such an illiquid asset is not really enticing to me.

Let Tabung Haji, LTAT and KWAP buy up all

some ppl say this is national service wor

I mean. This is supposed to be a charitable investment It wasn't designed for profit making anyway. Kinda like war bonds

for me, I won't at least until I know to whom the money goes to help - knowing the current gov ....

Ha ha malaysia gov start to borrow $$ as next year revenue will be lower.

Corporate tax rate collection lower, GDP lower 17% and more, foreign investor moving out..

Maybe not enough $$ to fund the gov. Next year.

definitely more transparent than the previous tabung harapan

GST needs to come back. and windfall tax on billionaires in malaysia i guess. foreign investors are slowly moving back to our stock markets actually.

Tabung Harapan Malaysia donations used to pay-off 1MDB debts
https://www.nst.com.my/news/nation/2019/11/...-pay-1mdb-debts

the setup of the Tabung Harapan Malaysia on May 30, 2018 to provide Malaysians with a platform for them to play their part in helping to ease the government’s burden in dealing with the RM1 trillion national debt.

the RM500 million Sukuk Prihatin which aims to raise funds from the public and corporates who wish to help contribute towards the Covid-19 Fund.
It is also to provide further assistance to the micro, small and medium enterprises, as well as the healthcare sector's research on infectious diseases.

https://www.nst.com.my/news/government-publ...-sukuk-prihatin

how transparent when it comes to that "selection" will it be biased or impartial or limited to some "good" few?

haha I don't think u can compare donation and bond fund actually. I see ppl commenting they get nothing back when giving donation vs some returns im bond fund. funny ppl. haha.

up in smoke because the donated money had been USED to pay off 1MDB debts (see below news link by MUM)

more transparent than previous Tabung Harapan?
read below post?
Tabung Harapan has only 1 clear objective
Sukuk Prihatin has multiples objectives, which could be "subjective" in the views of many.

so, which one looks more dubious now?

This post has been edited by yklooi: Aug 19 2020, 10:28 AM

No need to discuss politics here.
Tabung Harapan is donation. This is government bond. It is like compare apple with orange.

As far as return rate concern, as pointed out by member here, it is on par with market rate with 2 years tenure. One drawback would be cannot sell before the maturity date. The major advantage would be the minimum to subscribe is very low.

You can skip it, you can subscribe the minimum, but not advisable to subscribe a lot of units for investment.

2% p.a. for 2 years is the same as MBB board rate for FD 2 years apparently. the intention is noble, I'm sure there are people with large pockets who are interested in the tax benefit of this. but I wish the FAQ is more detailed on how the proceeds will be used (which company? where? when?).

Govt ran out of cash and now want to collect money from people

got tax relief?

For any principal amount waived (in full or in part) by the Eligible Buyer/Applicant on maturity date, the waived amount will be allowed as a deduction in the basis period for the year of assessment where the redemption of the Sukuk Prihatin is made.
https://www.maybank2u.com.my/maybank2u/mala...k_prihatin.page?

Sukuk holders have the option of donating the principal amount upon its two-year maturity...donate get tax benefit

Frequently Asked Questions for Sukuk Prihatin
https://www.mybsn.com.my/formdownload?formDownloadId=2474

owh, better directly donate to organizations that have tax rebate. at least i know it will go to reputable organizations.

Just 2% only..
No thanks..
Dump in ASNB also can get around 4% this year (expected) vs 6% normally...

If 5% like previous Sukuk Simpanan with 3 years maturity.. then might consider 😁

2% + tax relief sounds good
other donation only tax rebate but no 2% pa right?

what MUST you do to get that tax benefit for Sukuk Prihatin?

hmm i guess u have a point there, but personally i'm not too keen as we dunno who gets the money - if u know what i mean.

https://www.malaysiakini.com/news/539251

just to add on

https://www.malaysiakini.com/news/539015

This post has been edited by !@#$%^: Aug 20 2020, 12:17 PM

I just placed RM 500 after receiving some salary money. Will see if successful or not.

You will get back the money if you choose not to donate. I don't know why many members using this reason to attack this bond.

This is a bond.

im talking about the donation part, for some members who compared tabung harapan and tabung prihatin.

also bond can default right? if im not mistaken.

unless we end up like lebanon the chances of it going default probably less than 1%?

This post has been edited by zstan: Aug 21 2020, 02:03 PM

For donation I don't comment anything, as I don't opt for that option. But I guess if this bond yields 6%, nobody talk about politics and fully subscribed in one day.

And yes, bond can default. It is government bond, if default means Malaysia bankrupted, or soon. PIDM also not safe, cash in MYR also not safe.

well, that's how the convention. bond funds are not capital guaranteed, all over the world same disclaimer I think.

as for the bond part itself, 2% is comparable to capital guaranteed FD. and as to why only 500 mil, I think there's a lot more money wastage in the administration as pointed out by the audit general.

And you know exactly where Tabung Harapan money goes, do you?

And the knowledge pack already mention where the funds will be channeled to.



Also this sukuk is insured by PIDM, if its not safe then your FD in banks are equally risky as well.

Please stop looking at everything with political lenses.

At the same profit rate, putting in RM10,000 would mean a total profit of RM200 per year, which will then be divided into four to be paid to you in sums of RM50 for each quarter or every three months.
You get paid each quarter rather than upon maturity.

OPR might drop again ...
https://www.theedgemarkets.com/article/bnm-...-%E2%80%94-hlib

https://m.malaysiakini.com/news/537645

yup, those are the areas of concern. as to whom and which company, hahaha this is malaysia. as I have pointed out above.

yup, assuming opr continue to drop then this is good.

Subscription period: 18th August to 17th September 2020.

Interested parties do take note.

To me the logic behind of this sukuk prihatin is the government is asking for donations in the name of nation building.

First, they have tabung covid 19 and many corporates donated towards it.. we need to know that it was an initiative from a new government. And now sukuk prihatin, it opens to retail investors as well as corporate and sme with options you can claim all money back upon maturity or waive part or in full of your investment amounts!

For the sake of nation building, what would the corporate world think what the government wants in the end?

the donation is only from the interest received. you will still get your money back in full after 2 years. it's a loan to the government, not a full donation unlike Tabung Harapan.

interesting that it u mention it is insured by pidm though.

PIDM insures up to RM250,000 worth of principal and profit for deposits
placed with licensed financial institutions. The Profit Payments and the
principal amount under this Sukuk Prihatin is a direct obligation of the
Government as the Issuer.

yup, there 2 part to this. sukuk and donation.

Well, MBB and PBB 12 months FD is < 2% now

Supposedly there's another OPR cut, it might go down to 1.6 or 1.5 :|

is it?

Option to Waive Principle on Maturity Date

Sukukholders may waive the principal amount due (in part or in full) on maturity date, as a contribution to any Government trust account, approved by the Government (“Government Trust Account”).

Sukukholders may waive the principal amount due (in part or in full) on maturity date, as a contribution to any Government trust account, approved by the Government (“Government Trust Account”).
https://www.maybank2u.com.my/maybank2u/mala...k_prihatin.page

You have the option to waive partially of your principal amount if you choose to do so, not the interest ... you get your interest paid quarterly.

yes my bad.

"The government will continue to pay the profit payments to you every quarter until the end of the two-year period for Sukuk Prihatin (September 22, 2022), which will be also when you get your initial investment sum or principal back, unless you choose to donate either all or some of the principal to the government for spending related to Covid-19."

it's a loan, not a donation, regardless.

talking about PIDM..

do u guys think they really have the financial strength to cover if anything were really happens??

it's just some "feel good selling point" so that u guys won't be so worried...

so for me personally..
PIDM covered or Not. don't give damn about it.
it's the $$$ returns @ yield that matters most... in this hard moments... every $$$ is counted....

This post has been edited by nexona88: Aug 21 2020, 03:53 PM

Exactly...

https://www.pidm.gov.my/en/media/press-rele...al-report-2018/
"In 2018, PIDM reported a total income of RM588.5 million with an operational net surplus of RM488.2 million, increasing its total funds and reserves to RM4.1 billion."

4.1b / how many people have saving accounts or FD. Do the math yourself for PIDM strong believers.

If you are looking for return, Sukuk Prihatin is not for you. Even the knowledge pack already stated very clearly this is not for profit. Why are people here so adamant of profiting from this Sukuk? Go play elsewhere?

And do you even know how PIDM works? Financial banks will band together to provide support for the member bank should one of them fails.

How likely will that happen? Very unlikely. But if it happens you’ll be glad that your investment are PIDM insured. It serves to protect the wild cards of the curve, the low probability but high impact risk.

This post has been edited by victorian: Aug 21 2020, 04:09 PM

PIDM and government bond is under same risk category, no doubt.

nope. FD and bonds not same risk category.

I'm talking about PIDM overall....

not just Sukuk Perihatin only..
since some u guys says confidently it's Protected by PIDM. don't worry. $$ won't be loss, get missuses by governments etc.

and yes. I'm playing elsewhere... happy for now..
but worry the future...
esp reaching year end...

government has tonnes of way to print money, don't have to worry about them. reintroducing GST aat 3% is already good enough to cover more than what SST can cover.

haha it's a gimmick la. ex-pm tax bill already cover this double.

This become a politics thread again.

reality of malaysia. did u not think ASx is political? haha

Sukuk perhatin is also political gimmick...
Why just small amount..
Should go big like 5bil straight 💪

2% not much people want la.. 500m took time to fully subscribe... Or even can't fully subscribed...
If >=6% 5b will oversubscribed within one day. Nobody cares was it political gimmick.

It is political, so you don't park money there, information not transparent there as well, invest a lot of GLC that you hate.

Put in PIDM protected FD instead.

wrong, u don't see the point. this 2% fund is political gimmick. also as I have mentioned u have to know what this fund is about. there are 2 pays to it ie sukuk and donation.

sukuk - I have no issue about it, just as mentioned 2% - at the end of the day still likely get back the money.

donation - I won't, just as u won't, because I don't wanna donate to any tom dick harry company.

the bold part..

even I would subscribe.
easy money & many says it's PIDM protected too
then government headache.. needed to limit 10k per person

I will too, but I won't donate my principle to gov. haha.

same here..

just hope the option to donate, just stay as option till the end... not after maturity become compulsory to donate for all

This post has been edited by nexona88: Aug 21 2020, 06:15 PM

just to add on, I have nothing against GLC but cronies. there's a difference.