Sukuk Prihatin: Response to people’s desire to help rebuild economy – PM Muhyiddin

PUTRAJAYA, Aug 18 — The issuing of the RM500 million Sukuk Prihatin Islamic bonds today is in response to the people’s desire to help the government rebuild the economy in the post-COVID-19 pandemic era, said Prime Minister Tan Sri Muhyiddin Yassin.

He said the government decided to implement a ‘bottom-up’ approach in the issuance of Sukuk Prihatin to open opportunities for the public and the corporate sector to subscribe.

“This is a form of resource consolidation that reflects the solidarity of Malaysians in rebuilding the country’s economy,” said Muhyiddin at the launch of Sukuk Prihatin here today. Also present was Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

The Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah, who witnessed the launch of the Islamic bond, also agreed to become its earliest subscriber.

Sukuk Prihatin, which is a syariah-compliant investment instrument, can be subscribed starting with RM500 with a profit rate of two percent per annum, for two years. There is no maximum limit to its subscription.

The subscription period starts today until Sept 17, with profit to be paid every quarter of the year and is tax exempted. It can be subscribed only through digital banking services, using JomPAY and DuitNow facilities.

“I am moved when informed that the government has received many offers from honest and sincere people who want to support the government’s efforts to revive the country’s economy,” said Muhyiddin.

He said the subscription from Sukuk Prihatin would be channeled into the COVID-19 Consolidated Fund and programmes to be funded by sukuk were for the benefit of those affected by the pandemic.

The programmes included improving connectivity for rural schools, funding grants for research into infectious diseases, and financing micro-small and medium enterprises, especially women entrepreneurs, he added.

Muhyiddin said the government would also allocate some of the proceeds from Sukuk Prihatin for health, including research on infectious diseases.

“This will benefit efforts by the Ministry of Health and public research institutions, as well as institutions of higher learning, in their study of infectious disease or epidemic,” he added.

Since the focus of the Sukuk Prihatin fund is for the needy, he said, the government promised to ensure that no one will be left behind in the economic recovery efforts following the COVID-19 outbreak.

He said the Sukuk Prihatin initiative met the three focus of the Shared Prosperity Vision and is part of an approach that would benefit the most target group that is worst affected by Covid-19.

The three focus of the Shared Prosperity Vision are to restructure economy by ensuring development for all, addressing inequality by bridging the income gap and building the country towards a united, prosperous and dignified nation.

“I am confident that this noble effort will ensure the people get to enjoy a decent standard of living through the best approach through cooperation between the government and the people,” he added.

Source: Prime Minister's Office of Malaysia