Sukuk 1Malaysia 2010 With Guaranteed Return of 5% per Annum
The Sukuk 1Malaysia 2010 amounting to RM3 billion will be issue by the Malaysian government on 21 June 2010.
Bank Negara Malaysia has been appointed to issue the sukuk on behalf of the government.
The Sukuk has offer a Guaranteed profit margin of five per cent per annum and have maturity of three years tenure.
This is equivalent to 1.25% (5% divided by 4) per quarter. It means that the Sukuk 1Malaysia 2010 holder will receive 1.25% of the holding amount as profit at the end of each quarter.
You may start subscribing it now as the Subscription Period is from 20 May to 9 June 2010.
It can be subscribed at most commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Bhd, Bank Simpanan Nasional and Agrobank.
The Sukuk, is based on Shariah principles and in scripless form.
Only Malaysian citizens who are 21 years and above are eligible to apply.
The minimum subscription amount will be RM1,000 and in multiples of RM100, e.g. RM1,100, RM1,200, etc. The maximum subscription amount will be RM50,00 per subscriber.
You may sell and purchase, either fully or partially, the sukuk before the maturity date as it has a flexible resaleable feature.
Please note that the minimum selling amount allowed is RM100.
Allocation of the Sukuk will only take place after the close of the subscription period. All subscribers will be allocated with an amount less than or up to the amount subscribed, depending on the total number of subscribers and the total subscriptions received.
Only successful applicants will be notified by their agent banks on the amount of Sukuk 1Malaysia 2010 allocated to them. Profit payments will be made on quarterly basis through the sukukholder’s savings or current account maintained with their agent bank.
For example, if the profit payment date falls on 21 September 2010, then the agent bank is required to credit the quarterly profit payment in the Sukuk 1Malaysia 2010 holder’s deposit account on 22 September 2010.
All the profit received would be exempted from tax.
For those who think stock market investing is risky and wish to get higher return compare to FD (fixed deposit), may invest in this Islamic bonds.
At this moment, the interest rate for FD is only 2.5% for a year.
There is no harm buying the bonds if one has the extra money
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Key Features of Sukuk 1Malaysia 2010
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| Sukuk type |
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| Profit to investors |
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| Tenure |
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| Eligible buyers |
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| Form of instrument |
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| Tax exemption |
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| Transferability and assignability |
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| Initial subscription amount |
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| Resaleable feature of Sukuk 2010 (Commencing 22 June 2010) | |
| Allocation of Sukuk |
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| Resaleable Amount |
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| Pricing |
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List of Agent Banks for Sukuk 1Malaysia 2010
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Commercial Banks
- Affin Bank Berhad
- Alliance Bank Malaysia Berhad
- AmBank (M) Berhad
- Bangkok Bank Berhad
- CIMB Bank Berhad
- Citibank Berhad
- EON Bank Berhad
- Hong Leong Bank Berhad
- HSBC Bank Malaysia Berhad
- Malayan Banking Berhad
- OCBC Bank (Malaysia) Berhad
- Public Bank Berhad
- RHB Bank Berhad
- Standard Chartered Bank Malaysia Berhad
- The Bank of Nova Scotia Berhad
- United Overseas Bank (Malaysia) Bhd.
Islamic Banks
- Alliance Islamic Bank Berhad
- Affin Islamic Bank Berhad
- AmIslamic Bank Berhad
- Bank Islam Malaysia Berhad
- Bank Muamalat Malaysia Berhad
- EON Capital Islamic Bank Berhad
- Kuwait Finance House (Malaysia) Berhad
- Hong Leong Islamic Bank Berhad
- Maybank Islamic Berhad
- OCBC Al-Amin Bank Berhad
- Public Islamic Bank Berhad
- Standard Chartered Saadiq Berhad
Development Financial Institutions
- Bank Kerjasama Rakyat Malaysia Berhad
- Bank Simpanan Nasional
- Agrobank
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Schedule of the Quarterly Profit Payment of S1M 2010
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|
Profit Period |
Days |
Profit Payment Date |
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21/06/2010 – 20/09/2010 |
92 |
21/09/2010 |
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21/09/2010 – 20/12/2010 |
91 |
21/12/2010 |
|
21/12/2010 – 20/03/2011 |
90 |
21/03/2011 |
|
21/03/2011 – 20/06/2011 |
92 |
21/06/2011 |
|
21/06/2011 – 20/09/2011 |
92 |
21/09/2011 |
|
21/09/2011 – 20/12/2011 |
91 |
21/12/2011 |
|
21/12/2011 – 20/03/2012 |
91 |
21/03/2012 |
|
21/03/2012 – 20/06/2012 |
92 |
21/06/2012 |
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21/06/2012 – 20/09/2012 |
92 |
21/09/2012 |
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21/09/2012 – 20/12/2012 |
91 |
21/12/2012 |
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21/12/2012 – 20/03/2013 |
90 |
21/03/2013 |
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21/03/2013 – 20/06/2013 |
92 |
21/06/2013 |
|
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1,096 |
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BUDGET: Government To Issue RM3 Bln 1Malaysia Sukuk
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KUALA LUMPUR, Oct 23 (Bernama) — The government will issue 1Malaysia sukuk totalling RM3 billion to give opportunity for the rakyat to increase their income, Prime Minister Datuk Seri Najib Tun Razak said on Friday.
Najib, who is also Finance Minister said that the sukuk would be offered to all Malaysians aged 21 and above, with a minimum investment of RM1,000 and a maximum of RM50,000.
“This sukuk has a maturity period of three years with a five per cent annual rate of return paid quarterly,” he said when tabling the Budget 2010 in Parliament.
This will gave opportunity for individuals who were not able to subscribe the earlier, syariah-compliant savings bond totalling RM5 billion launched under the Second Stimulus Package.
Najib said the syariah-based savings bond received overwhelming response.
To ensure rapid development of financial services, particularly Islamic finance, the government has proposed that the existing tax incentives to be extended to 2015.
These include stamp duty exemption of 20 percent on Islamic financing instruments, tax exemption on banking profits derived from overseas operations which is also extended to profits of insurance and takaful companies as well as deduction on expenditure incurred in the establishment of Islamic stock broking companies.
Besides that, the Ar-Rahnu micro credit programme, which uses gold as collateral to secure financing, is expected to be expanded to all syariah-compliant financial and banking institutions such as Bank Muamalat and Bank Islam.
fr:bernama.com/bernama/v5/newsbudget.php?id=449151
Survey shows lukewarm response to 1Malaysia sukuk so far
PETALING JAYA: Response has been lukewarm to the Sukuk 1Malaysia 2010, according to local banks polled by StarBiz yesterday.
However, the sukuk, which was available since yesterday, has been attracting customers above 40 years old, a bank personnel said.
“Response is not that good. We received less than 10 depositors today,” said a Public Bank Bhd representative in Mont’Kiara.
He said customers were between 40 to 50 years old.
A customer service representative from an EON Bank Bhd branch in Petaling Jaya said it received 30 applications yesterday.
“The customers are 45 to 50 years old. We feel the sukuk is attractive to this age group because these people do not have a fixed income and want better fixed returns than the conventional fixed-deposit returns,” she said.
A representative from a HSBC Bank (M) Bhd branch in Kepong said the bank had received about 10 applications, also from customers aged 40 to 50 years.
The Ministry of Finance will issue the RM3bil sukuk on June 21. Bank Negara will issue the sukuk on behalf of the Government.
According to the central bank’s website, the sukuk, which is based on syariah principle, is eligible for Malaysian citizens aged 21 years and above. It has a three-year tenure and offers a return of 5% per annum.
It has a resaleable feature which provides the flexibility for investors to sell and purchase before the maturity date. The application ends on June 9.
The minimum subscription is RM1,000 and the maximum is RM50,000 per person.
The sukuk can be subscribed at most commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Bhd, Bank Simpanan Nasional and Agrobank. Allocation of the sukuk will take place after the subscription period ends.
A bank representative from Affin Islamic Bank Bhd said the bank had yet to receive any applications for the sukuk.
An official of an Alliance Islamic Bank Bhd branch in Klang said response was “good” and comprised senior citizens, but decline to give any figures.
fr:biz.thestar.com.my/news/story.asp?file=/2010/5/21/business/6304235&sec=business
This scheme is definitely not an investment to invest for long term accumulation purpose targeting for higher ROI. If you have some FD and saving account money for short term emergency cash purpose, this scheme might be good for you to park some money. It will give you higher ROI than FD and also reasonable liquidity.
Maximum holding period is only 3 years. how can that be investment for long term?
Thanks for asking. What I meant is that we should not put money intended for long term investing purpose like retirment planning into this scheme. By doing that, one will put the medium to long term money into the short term money bucket. That’s wrong money into the wrong bucket.
3 yrs is not long term but I am sure there will be more Sukuk scheme to come. I invested in the Sukuk Simpanan Rakyat in 2009 and will mature in 2012. I put a bit more in this 2010 sukuk. Probably will be another one next year or so.
However, the stock market has taken a beating these few days and some of the REITs are looking better in terms of dividend yield, i.e. closed to 8% nett. I have the bulk of my investments in REITs and will put in more as well. REITs is my long-term investment vehicle.
Not my kind of investment. 5% per annum for me is very low for my liking. I still prefer the equity market. For those who don’t know any other investment tools, then the Sukuk 1Malaysia is a good idea for you to park your money.
It gives better return compared to FD.
Just 2 cents… ^^
I have reservation about putting in money to these schemes introduced by Govt. However, I agree with Yap Ming Hui that this can be used as a short term bucket and 5% is not sufficient to hedge against the high inflation rate in KL City meaning no growth of value of money over time.
Investment less than 10% per annum will not preserve the value of our hard earn money especially if you are staying in City. Besides, need to add in personal inflation rate too depending on lifestyle and spending habits. For long term, better look into investment that can deliver more than 10% per annum. I classified my investment portfolio to 2 classes which I call SOLID and LIQUID. SOLID would consist of investments that provide capital growth and/or consistent returns which contribute to my passive income planning. LIQUID will be investments that are more market related (with higher risk), which needs more effort in managing but with easy accessibility to the fund. Each person portfolios might differs, depending on risk appetite and I believe that personal finance knowledge/base must be firm before anything else.
As an investor, the first thing that we must know is that there is no perfect investmentt in this world. Every investment has its advantages and disadvantages. So, we need to put the right money into the right investment. For short term money that we can’t take much risk, we will put into fixed deposit or sukuk earning 3-5%. For long term investment targeting for higher ROI like 10%, we must take risk to invest into the right properties and shares. Therefore, there is no perfect investment. There is only the right investment for the right purpose.
1Malaysia sukuk subscription falls short
KUALA LUMPUR, June 23 – Take up of the 1Malaysia sukuk issued by the Ministry of Finance fell short as only RM2.4 billion out of the RM3 billion sukuk was subscribed as of June 21.
Last year’s Sukuk Simpanan Rakyat, also issued by the Ministry of Finance, was fully subscribed after nine days of sale and the initial amount of RM2.5 billion was upsized to RM5 billion by using the allocation of the second series.
Both sukuks offered a five per cent return per annum for three years to investors.
The Ministry of Finance said today that Sukuk 1Malaysia 2010 amounting to RM2.4 billion was allocated to 74,781 investors who will be notified by their agent banks.
It added that beginning 22 June, investors can sell and purchase the sukuk at agent banks.
The purchase of the sukuk is based on a first-come first-served basis, with no maximum limit, subject to the availability of the sukuk sold by existing sukukholders. The minimum sale or purchase is RM100 and transactions are in multiples of RM100. An administrative cost of 0.1 per cent of the nominal purchase value is payable to the agent banks.
The selling and buying prices are calculated based on principal at par plus accrued profit.
Information on the availability of Sukuk 1Malaysia 2010 and daily prices can be obtained from bondinfo.bnm.gov.my or checking with agent banks.
fr:themalaysianinsider.com/business/article/1malaysia-sukuk-subscription-falls-short/