How to Buy Bond and Sukuk From As Low As RM 1,000

How to Buy Bond and Sukuk From As Low As RM 1,000

The Fixed Income market is the most important part of Malaysia’s Capital market. As of date, Malaysia has RM1.4 trillion bond and sukuk currently outstanding in the capital market. This market provides an avenue for both the corporations for funding and the financial institutions for its fixed income return. Historically, this asset can only be purchased by institutional investors or high net worth individuals due to its high barrier of entry. While we can purchase stocks for 100 unit per lot, 1 lot for bond & sukuk stays at RM5 million and lowest RM250,000 odd lot for high net worth individual investor. 

However, Securities Commission Malaysia (SC) launched its seasoned bond framework which facilitates access for retail investors to purchase bonds & sukuk that were originally issued for institutional investor in the primary market. You can read more on the framework here but some of the highlights from the guideline are as below:
  1. Denominated in Ringgit Malaysia
  2. The bond must have a remaining tenure of more than 1 year
  3. The bond must have been issued for at least 1 year
  4. The bond must have a minimum credit rating of A (Read more about rating here)
In 2019, iFAST becomes Malaysia’s first retail bond eligible distributor in transacting bond and sukuk with retail investors. The names of distributors in the Eligible Distributors List here are approved by the Securities Commission Malaysia and will continue to be updated when new distributors come into the market. Investors can now find all the information needed in regard to Bond & Sukuk investing in Malaysia in one free website at Retail investors can now make an informed decision when investing in Bonds & Sukuk by using BIX Malaysia which centralized data from SC, Bank Negara Malaysia, Bursa Malaysia and other related parties.

Click this link or you can find it under the News & Announcement tab to start investing in bond & sukuk.  You can also read other articles to learn more before investing in Bond & Sukuk.

This report has been prepared and issued by Bond and Sukuk Information Platform Sdn Bhd (“the Company”). The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile.
The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, the Company does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
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