Malaysia to issue RM500 million bonds to rebuild economy

(NST) – The government will issue Islamic bonds to allow the rakyat and businesses to support the country’s economic recovery efforts.

The Prihatin sukuk will be issued in the third quarter of the year, with a fund size of RM500 million.

The sukuk is part of the RM35 billion Economic Recovery Plan (ERP) announced by Prime Minister Tan Sri Muhyiddin Yassin today.

The prime minister said the Prihatin sukuk stemmed from the rakyat’s interest in helping to rebuild the economy.

“Since the spread of Covid-19, the government has received contributions in cash and equipment via funds managed by the National Disaster Management Agency and the Health Ministry.

“Until now, we continue to receive requests from the rakyat and businesses who are keen to contribute to the recovery efforts,’ Muhyiddin said in his speech at the ERP presentation here today.

“Hence, the government will issue Sukuk Prihatin with a size of RM500 million in the third quarter of the year to fulfil the requests.”

He added that the RM500 million raised will be used to help micro enterprises especially those which are run by businesswomen.

The proceeds will also be used to improve broadband coverage in schools particularly in rural areas, as well as grants for research in infectious diseases.