Retail bonds and sukuk market in Malaysia
The framework for retail bonds and sukuk was developed pursuant to the Securities Commission Malaysia (SC) Capital Market Masterplan 2 to facilitate greater retail participation in the bonds and sukuk market. It is intended to meet retail investors' demand for access to a wider range of investment products.
Access for retail investors to bonds and sukuk was largely available through bond and sukuk unit trust funds and exchange traded funds. With the retail bonds and sukuk framework, retail investors will now have direct access to bonds and sukuk.
Under the retail bonds and sukuk framework, issuers may now choose to issue bonds and sukuk to retail investors either on the exchange (Bursa Malaysia) or over-the-counter1 (OTC) via appointed banks. This allows issuers to have access to a larger pool of investors.