The Exempt Regime of Bursa Malaysia Securities Berhad (“Bursa Malaysia” or “the Exchange”) today recorded the listing of 76 government instruments comprising 41 Malaysian Government Securities (“MGS”) and 35 Malaysian Government Investment Issues (“MGII”).
MGS (conventional bond) and MGII (Islamic sukuk) are two types of long-term government bonds issued by the Malaysian Government to fund the Government’s development expenditure. In addition, these instruments were also issued to finance the stimulus packages and economic recovery plan under the COVID-19 Fund. While the issuances and trading will remain over-the-counter, the listing of MGS and MGII on the Exempt Regime provides greater visibility and transparency for investors.
“We are encouraged by the Government’s decision to list all their existing and future issuances of MGS and MGII on the Exempt Regime. It signifies the support for the Exchange, and augurs well for the many initiatives we have taken to expand our portfolio of fixed income-based instruments offered and listed on the Exchange,” said Datuk Muhamad Umar Swift, Chief Executive Officer of Bursa Malaysia.
Launched in December 2008, the Exempt Regime was introduced to promote the debt securities market while enhancing the breadth and depth of investment options in the Malaysian capital market. The Exempt Regime provides an avenue for issuers to acquire a listing status for its sukuk or debt securities on Bursa Malaysia. It is also a platform that will provide higher visibility and profiling for its issuers. An issuer of the Exempt Regime can be a listed entity or otherwise. At the same time, the sukuk or debt securities may be denominated in Ringgit or any foreign currency permitted by the Controller of Foreign Exchange. The targeted group of investors for such sukuk or debt securities are sophisticated investors, and trading will take place outside the Exchange on an over-the-counter basis.
As at end-November 2020, the Exempt Regime recorded 27 Programmes worth approximately RM316.14 billion, with 87 issuances of sukuk or debt securities amounting to approximately RM180 billion in nominal value from 23 issuers. The profile of this platform is now significantly enhanced through the listing of the 76 MGS and MGII, which collectively carry an outstanding amount of approximately RM811.02 billion. The full list of sukuk or debt securities listed on the Exempt Regime is available on Bursa Malaysia’s website below:
Apart from listing all the existing MGS and MGII on the Exempt Regime, the Malaysian Government has committed to list all future issuances of MGS and MGII on the Exempt Regime.
“Moving forward, we will continue collaborating with our regulators and stakeholders to deepen and widen the domestic capital market as well as to enhance fixed income-related educational and awareness programmes for retail investors,” added Datuk Umar.
