Economists Tout Malaysia’s Issuance of MYR 500 Million Sukuk Prihatin a Positive Move

August 21, 2020

The Government of Malaysia’s recent issuance of MYR 500 million Sukuk Prihatin (Sukuk) to raise funds for COVID-19 recovery efforts has been touted as a positive move to support the economy, according to chief economists in the country.

According to Dr Anthony Dass, Chief Economist and Head of Research of AmBank Group, the Sukuk was considered an attractive means for investors to diversify their portfolio given that it was issued by the Government, and as such, was considered a risk-free asset or on par with Malaysian Government Securities and Government Investment Issue bonds. Dass added that the corporate sector was expected to invest in the bulk of the issuance, rather than the retail sector.