Frequently Asked Questions of Sukuk Simpanan Rakyat (SSR) 01/2009

The following information is to help you understand better the features of SSR 01/2009:

1. Who is eligible for the SSR 01/2009?
Malaysian citizens who are 21 years old and above

2. When is the offer period for the SSR 01/2009?
The SSR 01/2009 is offered to the public from 14 April to 13 May 2009.

3. When is the SSR 01/2009 application form made available to the public?
The SSR 01/2009 application form will be made available to the public before the sales period at branches of the agent banks, and can be downloaded from www.treasury.gov.my and www.bnm.gov.my/sukuksimpanan.

4. Can agent bank accept application and payment for SSR 01/2009 from the public before the sales period?
No. Agent banks can only accept application and payment for SSR 01/2009 from the public during the sales period commencing from 14 April 2009.

5. What is the basis of the allocation of the SSR 01/2009?
The allocation of SSR 01/2009 to the applicant is based on a first-come first-served basis and is subject to such terms and conditions specified. The payment for the application of the SSR 01/2009 during the sales period does not imply that the applicant would be successful in the allocation of the SSR 01/2009.

6. What is the frequency of issuance for the SSR in 2009?
There will be two issuances of the SSR in 2009.

7. What is the tenure of the SSR 01/2009?
The SSR 01/2009 will have a maturity of three years.

8. What will the minimum and maximum amount of subscription be?
The minimum amount of holding per SSR 01/2009 holder is RM1,000 per application and in multiples of RM100, e.g. RM1,100, RM1,200, etc. The maximum aggregate holding per SSR 2009 holder for the two series is RM50,000.

9. Why is the maximum holding per SSR 2009 holder fixed at RM50,000 only?
The maximum holding of RM50,000 per SSR 2009 holder is to allow a wider distribution of the SSR 2009, so that more citizens can benefit from it.

10. Would profit be paid on the applicant’s investment from the date of application to the date of issuance of SSR 01/2009?
* For SSR 01/2009 holder who chooses to open or maintain a savings account with agent bank for the purpose of receiving quarterly profit payment, early redemption and final redemption:
o The agent banks will pay the SSR 01/2009 holder the prevailing savings account rate for the period between the date of application and the date of issuance of SSR 01/2009.
o For example, if you apply for the SSR 01/2009 on 14 April 2009, you will receive the savings account rate from 14 April to 13 May 2009.
* If however, for SSR 01/2009 holder who chooses to open or maintain a current account with agent bank for the purpose of receiving quarterly profit payment, early redemption and final redemption, the SSR 01/2009 holder will not be receiving any profit for the period between the date of application and the date of issuance of SSR 01/2009.


11. What is the profit for the SSR 01/2009?
The profit for the SSR 01/2009 is 5% per annum. This means the profit is approximately 1.25% (5% divided by 4) of the holding amount at the end of each quarter.

12. When and how will profit be paid to the SSR 01/2009 holder?
Profit will be paid on a quarterly basis. The profit from the SSR 01/2009 will be credited directly into the SSR 01/2009 holder’s savings or current account maintained with the agent banks.

13. Will the returns on SSR 01/2009 be subject to tax?
No, returns on the SSR 01/2009 are exempted from tax.

14. Can the SSR 01/2009 holder exercise early and partial redemption of the SSR 01/2009?
* The SSR 01/2009 can be redeemed early at the nominal value and including the profit amount due before the maturity date but after the first profit payment. The profit payment will be apportioned based on the number of days the SSR 01/2009 is held. Minimum redemption amount allowed is RM100.
* SSR 01/2009 holder may redeem the SSR 01/2009 in multiples of RM100.


15. When and how can SSR 01/2009 holder redeem the SSR 01/2009 at maturity?
Redemption proceeds (including the last profit payment) will automatically be paid by crediting directly into the SSR 01/2009 holder's account maintained with the agent bank at maturity.

16. Is the SSR 01/2009 transferable?
The SSR 01/2009 is non-negotiable, non-transferable and non-assignable. In the event of the demise of the SSR 01/2009 holder, the SSR 01/2009 held by the deceased SSR 01/2009 holder shall form part of his estate.

17. What documentation is required when applying for subscription of the SSR 01/2009?
An original or a certified copy of the Identity Card (I.C.).

18. Where can the SSR 01/2009 be subscribed?
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.

The application form for Sukuk Simpanan Rakyat is available here.