Malaysia launches Sukuk Prihatin, maiden digital Islamic bond - NST

https://www.nst.com.my/news/government-public-policy/2020/08/617391/malaysia-launches-sukuk-prihatin-maiden-digital-islamic

KUALA LUMPUR: The government has launched 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.

Prime Minister Tan Sri Muhyiddin Yassin said the Sukuk Prihatin was part of the 6R initiative launched by the government to help tackle issues faced during the Covid-19 pandemic.

He said the fund raised from the bottom up initiative would be used to modernise telecommunications network in the rural area to help students get access to education through digital channel.

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.

"The Sukuk Prihatin, a bottom up assistance, was launched on the back of overwhelming support from the public and corporates to help the groups who are affected by Covid-19 pandemic and movement restrictions.

"In response to this support, we are launching Sukuk Prihatin to allow the public as well as corporates who wished to help us in combating this pandemic and helping towards the recovery of the economy.

"It is a reflection of solidarity among Malaysians in joining hands towards this mission," he said at the launching ceremony in Putrajaya today.

The ceremony was witnessed by Yang di-Pertuan Agong Al-Sultan Abdullah Ri'ayatuddin Al-Mustafa Billah Shah.

Also present were Finance Minister Tengku Datuk Seri Tengku Abdul Aziz and Bank Negara Malaysia governor Datuk Nor Shamsiah Mohd Yunus.

Tengku Zafrul said the shariah-compliant sukuk was the first of its kind that are open to be subscribed by the public and corporates via online banking channels.

The two banking channels are JomPAY and DuitNow.

He said the minimum subscription for the first investment is RM500 with an interest of two per cent per annum for a tenure of two years.

Interest will be credited to subscribers or investors account every quarter for the period of the tenure.

After the tenure ends, subscribers or investors can opt to fully donate the interest to Covid-19 Fund and will be given a tax relief depending on the size of the donation.