IslamicFinance.de

The Malaysian government has launched the RM500 million Sukuk Prihatin which aims to raise funds from the public and corporates who wish to help contribute towards the Covid-19 Fund. Prime Minister Tan Sri Muhyiddin Yassin said the fund would be used to modernise telecommunications network in the rural area to help students get access to education through digital channels. It is also to provide further assistance to the micro, small and medium enterprises, as well as the healthcare sector's research on infectious diseases. The minimum subscription for the first investment is RM500 with an interest of 2% per annum for a tenure of two years. After the tenure ends, subscribers or investors can opt to fully donate the interest to Covid-19 Fund and will be given a tax relief depending on the size of the donation.

THE Covid-19 fund, launched by Malaysian Prime Minister Tan Sri Muhyiddin Yassin on March 11, received a RM5 million contribution yesterday. The donations came from Spanco Sdn (RM2 million), followed by DRB-Hicom, MMC Corp and YTL Corp who contributed RM1 million each. Property developer Titijaya Land has contributed 520,000 face masks for frontliners. With the above donations, the fund has amassed a total of RM8.13 million in contributions. The government has launched the Covid-19 fund to help affected Malaysians. Similarly, the Malaysian Department of Islamic Development has also launched another fund to help the Muslim communities affected by the outbreak. Separately, some Malaysians are criticising the setting up of funds and are calling on ministers to take pay cuts instead.

Deputy Prime Minister Tan Sri Muhyiddin Yassin has launched a new National Higher Education Savings Scheme (SSPN-i), the SSPN-i Plus, a scheme which incorporates education savings with affordable and comprehensive takaful coverage. Muhyiddin, who is also Education Minister, said SSPN-i Plus was an initiative under the National Higher Education Fund Corporation (PTPTN), aimed at promoting the habit of saving for higher education among Malaysians. Depositors in this syariah-compliant scheme not only invest for their education but will also receive takaful coverage, coupled with competitive dividend returns and tax relief of up to RM12,000 a year.

Malaysia remains a forerunner in global sukuk with the global outstanding sukuk amounting to over US$148 billion as at June 2013, which represents 60.4 per cent of the total global sukuk. Deputy Prime Minister Tan Sri Muhyiddin Yassin said credit must be given to Bank Negara Malaysia, the Securities Commission Malaysia, Shariah scholars and the Islamic financial industry community for their efforts to bring Malaysia's Islamic finance marketplace to the current level of sophistication. Muhyiddin, who is also Education Minister, also pointed out that shortage of qualified experts in Islamic finance was the constraining factor for the innovation of new products and services in most countries.