Friday May 21, 2010
Survey shows lukewarm response to 1Malaysia sukuk so far
PETALING JAYA: Response has been lukewarm to the Sukuk 1Malaysia 2010, according to local banks polled by StarBiz yesterday.
However, the sukuk, which was available since yesterday, has been attracting customers above 40 years old, a bank personnel said.
“Response is not that good. We received less than 10 depositors today,” said a Public Bank Bhd representative in Mont’Kiara.
He said customers were between 40 to 50 years old.
A customer service representative from an EON Bank Bhd branch in Petaling Jaya said it received 30 applications yesterday.
“The customers are 45 to 50 years old. We feel the sukuk is attractive to this age group because these people do not have a fixed income and want better fixed returns than the conventional fixed-deposit returns,” she said.
A representative from a HSBC Bank (M) Bhd branch in Kepong said the bank had received about 10 applications, also from customers aged 40 to 50 years.
The Ministry of Finance will issue the RM3bil sukuk on June 21. Bank Negara will issue the sukuk on behalf of the Government.
According to the central bank’s website, the sukuk, which is based on syariah principle, is eligible for Malaysian citizens aged 21 years and above. It has a three-year tenure and offers a return of 5% per annum.
It has a resaleable feature which provides the flexibility for investors to sell and purchase before the maturity date. The application ends on June 9.
The minimum subscription is RM1,000 and the maximum is RM50,000 per person.
The sukuk can be subscribed at most commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Bhd, Bank Simpanan Nasional and Agrobank. Allocation of the sukuk will take place after the subscription period ends.
A bank representative from Affin Islamic Bank Bhd said the bank had yet to receive any applications for the sukuk.
An official of an Alliance Islamic Bank Bhd branch in Klang said response was “good” and comprised senior citizens, but decline to give any figures. — By EUGENE MAHALINGAM