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.
