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PETALING JAYA: Malaysia’s US$1.5bil (RM6.14bil) global sukuk issuance attracted overwhelming demand from international investors, with an oversubscription rate of 4.7 times.
Finance Minister II Datuk Seri Amir Hamzah Azizan (pic) said the strong response underscored global confidence in Malaysia’s economic direction under the Madani Economy framework.
“We have strengthened public finances, ensured sustainable economic growth and laid a strong foundation for Malaysia’s long-term resilience,” he said in a statement yesterday.
“The strong oversubscription, together with the tightest spreads ever achieved, reflects global investors’ continued confidence in Malaysia’s economic prospects and policy credibility.
“It demonstrates that our reform agenda, prudent debt management strategy and commitment to sustainable growth continue to resonate with high-quality investors despite a challenging global environment,” he added.
The Finance Ministry said robust investor demand enabled the government to tighten pricing by 30 basis points (bps) from the initial price guidance, to Treasury plus (T+) 15bps for the 5.75-year tranche and T+25bps for the 10-year tranche.
The issuance comprised two tranches: US$850mil (RM3.48bil) with a tenure of 5.75 years and US$650mil (RM2.66bil) with a 10-year tenure.
The ministry said the issuance reaffirmed Malaysia’s presence in the international capital market by maintaining the sovereign benchmark yield curve.
“It will serve as an important pricing benchmark for Malaysian issuers, including government-linked entities and corporates, while supporting continued engagement with a broad and diversified global investor base,” it said.
It noted that the fiscal deficit had narrowed to 3.7% of gross domestic product (GDP) in 2025 from 6.4% in 2021, while government borrowings declined to 9% of GDP from 13.6% over the same period.
“Malaysia’s stronger fiscal position has been supported by economic growth of 5.2% in both 2024 and 2025, followed by 5.4% growth in the first quarter of 2026.
“The advance estimate of 5.8% growth for the second quarter also points to stronger-than-projected economic performance,” the ministry said.
Disclaimer
This report has been prepared and issued by Bond and Sukuk Information Platform Sdn Bhd (“the Company”). The information provided in this report is of a general nature and has been prepared for information purposes only. It is not intended to constitute research or as advice for any investor. The information in this report is not and should not be construed or considered as an offer, recommendation or solicitation for investments. Investors are advised to make their own independent evaluation of the information contained in this report, consider their own individual investment objectives, financial situation and particular needs and should seek appropriate personalised financial advice from a qualified professional to suit individual circumstances and risk profile.
The information contained in this report is prepared from data believed to be correct and reliable at the time of issuance of this report. While every effort is made to ensure the information is up-to-date and correct, the Company does not make any guarantee, representation or warranty, express or implied, as to the adequacy, accuracy, completeness, reliability or fairness of any such information contained in this report and accordingly, neither the Company nor any of its affiliates nor its related persons shall not be liable in any manner whatsoever for any consequences (including but not limited to any direct, indirect or consequential losses, loss of profits and damages) of any reliance thereon or usage thereof.
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