The RM60 billion stimulus package announced by Datuk Seri Najib included the launch of RM2.5 billion worth of Islamic bonds or Sukuk Simpanan Rakyat (SSR) 01/2009 which offer a 5% per annum.

Application for the bonds are on a first-come-first-served basis for individuals over 21 years of age and will be open from today until May 14 or until the total bond amount runs out. Minimum investment starts at RM1,000 to a maximum of RM50,000 per individual. Interest is paid quarterly and the bonds can be redeemed as early as after the first profit is paid without incurring any early exit fees.

How to apply and are they worth investing in? Read on below.

How To Apply For The Sukuk Simpanan Rakyat (SSR) 01/2009 Islamic Bonds?

• You can apply at any commercial or Islamic bank, or development financial institution in Malaysia from today to May 14.
• You can print the form from Bank Negara’s website here or obtain the form from the banks.
• Fill it out and bring your original IC.
• Depending on the bank, they may debit your account immediately with the amount or place a charge over it until May 15 when the final allotment of bonds are done by Bank Negara.
• It is important to remember that this is just the application period and you may not receive the full amount of bonds that you are applying for. If you are alloted less than your application amount on May 15, the excess funds will be returned to your bank account and the charge will be withdrawn.
• Interest will be paid quarterly into the account that you have specified in your application form.

Is It Worth Investing In The The Sukuk Simpanan Rakyat (SSR) 01/2009?

• The Sukuk Islamic Bonds offer an annual rate of 5%, paid annually which is approximately 3% over the fixed deposit rate. If you have excess funds sitting in fixed deposit, it will make more sense to transfer your funds from your term deposit into the sukuk bonds to earn a higher interest.
• The flexibility of withdrawing your bonds anytime in the 3 years of investment without penalty also offers more flexibility than a term deposit.
• Investment options in this current state of economy is also quite slim so considering the investment period and interest rates, the Sukuk bonds might be worth investing in. However, please invest according to your personal investment policies and risk appetites.

More information can be obtained here.