Saturday, April 11, 2009

Sukuk Simpanan Rakyat 2009 with 5% annual return

Have you heard about Sukuk Simpanan Rakyat (SSR) or seen its advertisement in mass media recently?

Sukuk Simpanan Rakyat (SSR) 2009 is an RM5 billions national Islamic savings bond issued by government of Malaysia and offerred to Malaysian citizens aged 21 or above. It is part of the Malaysian RM60 billions economic stimulus package announced in March 2009.

Bank Negara will issue the SSR in 2 phases. The issuance of SSR 01/2009 amounting to RM2.5 billion is on 14 May 2009 and will be offered to the public from 14 April to 13 May 2009 on a first-come-first-served basis and subjected to terms and conditions specified.

This SSR 01/2009 will have a maturity of 3 years, with profit rate of 5% per annum. The tax exempted return is paid quarterly (amounting to about 1.25% each payment). Minimum holding per person is RM1k and maximum holding is RM50k. It is is non-negotiable, non-transferable and non-assignable. This mean that this bond cannot be traded in any way.

During the sales period, the SSR 01/2009 can be subscribed at all agent banks, i.e. commercial banks, including Islamic banks, Bank Kerjasama Rakyat Malaysia Berhad, Bank Simpanan Nasional and Bank Pertanian Malaysia Berhad.

Click here for more information about Sukuk Simpanan Rakyat (SSR) 2009.


Anonymous said... Reply To This Comment

do u think it's a good investment tool?

Voyager8 said... Reply To This Comment


I would see this a savings rather than an investment.

5% is a good savings, but might impose opportunity cost for investment.

Kristy said... Reply To This Comment

how about the Etiqa Takaful??is it also a good saving tool ??

Boon Chuan said... Reply To This Comment

Do you think this savings have any risk?

Voyager8 said... Reply To This Comment

Hi Boon Chuan,

For any bond, the risk will be:
1. "interest" (could be other name for Islamic product) not paid by issuer.
2. issuer not buy back the bond upon maturity.

But since this is a government bond, the risk should be very very minimal.

This is considered a low risk low return product for investors. For fixed deposit savers, it could be viewed as a better return product with a little bit more risk than FD.

Anonymous said... Reply To This Comment

TQ for yr reply
How about ASM & ASW 2020 since the interest rate is higher (base on past record). What kind of risk does ASM & ASW have???

Voyager8 said... Reply To This Comment


ASM & ASW 2020 are unit trust investment in equity market.

The return is not said upfront like Sukuk, and will solely depend on the fund's performance.

Boon Chuan said... Reply To This Comment

Thanks for the information! Anyway, this scheme already sold out.

Anonymous said... Reply To This Comment

hi there!

abt the sukuk simpanan rakyat, is the buying of the shares subject to approval? and besides the normal requirements of being abv certain age, malaysian and all, do they have any othr requirements that they are lookin into? what if the buyer is currently the prime guarantor to someone who had failed to pay amount owed to a govt body like maybe perkeso...thanks for yr help

Anonymous said... Reply To This Comment


whats the difference between opening a savings account in a say.. alliance bank bhd and alliance islamic bank bhd? well, i wanted to open a normal savings a/c at the bank, so the cust service personnel did not ask me anything but had given me the islamic bank savings a/c eventhough im not a muslim... can u pls help explain..

Voyager8 said... Reply To This Comment


Islamic banking is a kind of banking method whereby the way it operated is compliance to Islamic rules. It is open to all, and you don't need to be muslim for that.

The Islamic rules don't allow collection of "interest", so they use "dividend" instead.

For alliance bank's basic savings account, you can check the information on their website:

Basic savings:

Islamic basic savings:

Anonymous said... Reply To This Comment

thanks Voyager8... appreciate ur feedback. And, will check out the link given..
have a pleasant evening and a blessed weekend!

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