Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

GOVERNMENT OF MALAYSIATERMS AND CONDITIONS OF SUKUK PRIHATIN
1.

Issuer

Government of Malaysia (“Government”)

2.

Instrument

Sukuk Prihatin (Scripless)3.

Utilisation of Proceeds

Proceeds from the Sukuk Prihatin will be channelled
to the Kumpulan Wang COVID-19 to financemeasures announced in the economic stimulus
packages and recovery plan to address the COVID19 crisis.

4.

Sukuk Size

Up to RM500 million in nominal value

5.

Issue Date

22 September 2020

6.

Islamic PrincipleCommodity Murabahah (via Tawarruq)

7.

Tenure/ Maturity DateThe Sukuk Prihatin will have a maturity of 2 years andwill mature on 22 September 2022.

8.

Eligible Buyer/Applicant.

1)

A Malaysian who is at least 18 years old at theclosing date of the offering; or2)

A company or corporation incorporated in
Malaysia (excluding all Financial Institution(s) (asdefined herein) and Capital Markets and Services
License holder carrying on the business of fundmanagement under the Capital Markets andServices Act 2007); or

3)

A cooperative, foundation, sole proprietorship,partnership, association or other incorporated
bodies operating in Malaysia; or

4)

A trustee that is registered as a member of the
Association of Trust Companies Malaysia(“Registered Trustee”), who acts on behalf ofEligible Buyer/ Applicant that falls under item (1),(2) and (3) above.

Notes:(a)Application from persons under 18 years of age
and entities other than company or corporations
referred to in (2) and (3) above will not be
accepted.

(b)

Application made by a Registered Trustee shallbe subjected to the terms and condition set out inOther Terms and Conditions.

Page 1 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

(c)

Any application for a third party by any person
who is not a Registered Trustee will not beallowed.

Notwithstanding the above, the Government at its
discretion may include any Financial Institution(s)incorporated in Malaysia as Eligible Buyer/Applicant
for the Sukuk Prihatin for the purpose of underwriting
any amount required for the issuance of Sukuk
Prihatin, as it deems necessary.
In respect of the eligibility, it is the sole responsibilityof the Applicant to ensure that they fall within theabove eligibility criteria before making any application
for subscription of the Sukuk Prihatin. Any applicationthat does not meet the above eligibility criteria will berejected and refund will be made by the PrimaryDistribution Bank in accordance with the Notifications
provision below.
9.

Profit Rate

2.0% per annum (fixed throughout the tenure).

10.

Frequency of Profit Payments to Investors

Quarterly from the Issue Date. The first profit payment
will be on 22 December 2020.




11.

Minimum subscription amountProfit payment will be credited directly into the
Sukukholders’ account by the Primary Distribution
Bank.
Each subscription/ application (initial or any
subsequent subscription/ application thereafter) shallbe at least a minimum of RM500 and in multiples of
RM100.
Any subscription/ application which is not in multiples
of RM100 will be automatically rounded down to thenearest RM100 multiple by BNM and the excess shallbe refunded by the Primary Distribution Bank to theApplicant via online transfer. Any subscription/
application that does not meet the minimum
subscription/ application amount required shall not be
accepted and shall be refunded to the Applicant
accordingly by the Primary Distribution Bank.

12.

Maximum amount of Subscription

13.

Subscription Period

18th August to 17th September 2020

14.

Redemption

Sukukholders may redeem the Sukuk Prihatin atnominal value only on the stated maturity date. The
principal amount will be credited directly to
Sukukholders’ account on the maturity date by thePrimary Distribution Bank.

No maximum amount.

Sukukholders may also waive the principal amount (inpart or in full) due on maturity date as a contribution
to any Government trust account, approved by theGovernment (“Government Trust Account”).

Page 2 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

15.

Transferability and Assignability



The Sukuk Prihatin are non-tradable,transferable and non-assignable.

16.

Option to Waive the Principal Amount due
on Maturity Date as a Contribution to theGovernmentSukukholders may exercise their discretionary right towaive the principal amount due (in part or in full) on
maturity date, as a contribution to any Government
Trust Account, either upfront during the application
process (choose to donate in full) or within forty-five(45) calendar days of the said 21st monthly estatement date (choose to donate in part or in full).






non-

The Sukukholders will be reminded in their 21 stmonthly e-statement to make a final decision either towaive the principal amount (in part or in full) or toreceive the principal amount due (in part or in full).
The Sukukholders may contact their respective
Distribution Banks (please refer to the respective
Distribution Banks’ website for further information)
within forty-five (45) calendar days of the said 21 stmonthly e-statement date to exercise the option or opt
out from making the contribution or make changes tothe amount that the Sukukholders intend to waive andcontribute in respect of the principal amount due on
the maturity date.
Should there be no changes made by the
Sukukholders relating to the waived principal amountof the Sukuk Prihatin (option as selected during theapplication process) the Primary Distribution Bank will
act in accordance with the confirmation it received
during the application of the Sukuk Prihatin in relation
to the principal amount due on maturity date.
Applicant is advised to read and understand themechanism for waiver of the principal amount due on
the maturity date in the Frequently Asked Questions(“FAQs”) section of the Knowledge Pack.

17.

Tax Treatment Accorded to the
Sukukholdersa)In respect of Profit from the Sukuk Prihatin: (i)All profit from the sukuk will be tax
exempted.

(ii)

This exemption is only applicable to Eligible
Buyer/Applicant stated herein and is notapplicable to:1) All Financial Institution(s) (as defined
herein) and Capital Markets andServices License holder carrying on thebusiness of fund management under the
Capital Markets and Services Act 2007;
and2) Registered Trustee who acts on behalfof Eligible Buyer/ Applicant.

(iii)

b)

Each Sukukholder is required to keep the estatement of the Sukuk Prihatin for tax
exemption purposes.

In respect of waiver of the principal amount of
Sukuk Prihatin:(i)Applicable
only
to
the
Eligible
Buyer/Applicant stated herein who chooses
to waive the principal amount (in part/ in full)

Page 3 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

as a contribution to the Government on thematurity date and is not applicable to: 1) All Financial Institution(s)(as defined
herein) and Capital Markets andServices License holder carrying on thebusiness of fund management under the
Capital Markets and Services Act 2007;
and2) Registered Trustee who acts on behalfof Eligible Buyer/ Applicant.
(ii)

The waived amount in (b)(i) will be allowed
as deduction in the basis period for that yearof assessment where the redemption of
Sukuk Prihatin is made.

(iii)

Each Sukukholder is required to keep
records on confirmation of the application to
exercise the option to waive the principal
amount as proof for tax deduction claim
purposes18.

Primary Distribution Bank

Malayan Banking Berhad (“Maybank”)

19.

Distribution Banks

The participating banks as listed in Appendix I to theTerms and Conditions herein.

20.

Payment Service Provider

Payments Network Malaysia Sdn Bhd (“PayNet”), theoperators of JomPAY and DuitNow.

21.

Distribution Channels of the Distribution
Banks

Internet and mobile banking platform of theDistribution Banks via JomPAY or DuitNow. Applicant
has to be existing customer of the relevant
Distribution Banks and is to follow the instructions as
required depending on the respective internet
banking platform of the relevant Distribution Banks forthe subscription of the Sukuk Prihatin. Please refer tothe FAQs in the Knowledge Pack.
The Applicant is advised to read the Knowledge Packcarefully and make the application for the Sukuk
Prihatin offering only via the Distribution Banks andusing the distribution channels offered by therespective Distribution Banks.

22.

Payment Method

The respective Distribution Banks will immediately
debit the Applicant’s account with the respective
Distribution Banks the amount equivalent to thesubscription amount applied for the Sukuk Prihatin.

23.

Notifications(i) For unsuccessful/ rejection to the application,
notice shall be sent by the Primary Distribution
Bank to the email registered by the Applicant
during the application process via either JomPAY
or DuitNow of the respective Applicant’sDistribution Banks’ internet banking platform
within fourteen (14) business days from theclosing of the offering date of the Sukuk Prihatin.
Pending receipt of such official notification fromthe Primary Distribution Bank, refund amountarising thereof, will be credited to the Applicant’s

Page 4 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

account within five (5) business days from thedate of application of the Sukuk Prihatin(ii) For successful applications, notice shall be sentby the Primary Distribution Bank to the email
registered by the Applicant during the application
process via either JomPAY or DuitNow of therespective Applicant’s Distribution Banks’internet banking platform within fourteen (14)business days from the closing of the offering
date of the Sukuk Prihatin (“Subscription
Notice”). Refund amount (if any) arising from therounding down of the application amount to meetthe multiples of RM100 requirement, will becredited to the Applicant’s account within five (5)business days from the date of application of the
Sukuk Prihatin
Disclaimer: The Primary Distribution Bank shall not
be liable for any information error(s)transmitted by the Distribution Banks orerror(s) made by the Applicant in thecourse of making application via
JomPAY/ or DuitNow (as the case maybe)24.

Proof of Application /Certificates/ e-Statements

An Applicant’s application for the Sukuk Prihatin is
confirmed when the completed transaction noticeappears on the screen once the payment iscompleted. A copy of the transaction notice can be
printed from the online banking platform of therespective Applicant’s Distribution Banks as a proof
for application made for the Sukuk Prihatin (“Proof ofApplication”).
Proof of Application is not by itself conclusive of
successful subscription of the Sukuk Prihatin. Only
upon receipt of the Subscription Notice will an
applicant be deem a successful Sukuk Prihatin
Applicant (“Successful Sukuk Prihatin Applicant”)
and also a Sukukholder of the Sukuk Prihatin.
The Proof of Application and the Subscription Noticeneeds to be kept as a record by the Applicant and theSuccessful Sukuk Prihatin Applicant (as the case maybe) at all times, to facilitate any refund claims or as
proof of successful subscription of the Sukuk Prihatin(as the case may be).
To evidence the investment/ownership of the Sukuk
Prihatin and the Sukukholders’ entitlement to theProfit Payment, each Sukukholder will receive
monthly e-statement via e-mail registered by the
Applicant during the application from the PrimaryDistribution Bank. This e-statement is essential to the
Sukukholders for tax claim purposes (equivalent totax voucher).

25.

Governing Laws

Laws of Malaysia

Page 5 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

OTHER TERMS AND CONDITIONSTHIS OTHER TERMS AND CONDITIONS SHALL BE READ IN CONJUNCTION WITH THE TERMS AND
CONDITIONS OF THE SUKUK PRIHATIN. THE SUKUKHOLDERS SHALL BE BOUND BY THE TERMS STATEDHEREIN THROUGHOUT THE TENURE OF THE SUKUK PRIHATIN
Definitions
In this Terms and Conditions, the following shall have the following meanings:“Anti-Corruption Laws” means all applicable laws, rules and regulations relating to bribery and corruption including
Malaysian Anti-Corruption Commission Act 2009, the US Foreign Corrupt Practices Act of 1977, the UK Bribery Act
2010;“Anti-Money Laundering Laws” means all applicable laws and regulations relating to anti-money laundering, antiterrorism financing and proceeds of unlawful activities including the Anti-Money Laundering, Anti-Terrorism Financing
and Proceeds of Unlawful Activities Act 2001;“Authorities” means BNM, the SC, the Police or any other regulatory authorities;“CMSA” means Capital Markets and Services Act 2007;“BNM” means Bank Negara Malaysia, the central bank of Malaysia;“Commodity(ies)” refers to a Shariah compliant commodity as BNM deems fit for the Commodity Murabahahtransaction;“DNFBP and NBFI” means Designated Non-Financial Businesses and Professions and other Non-Bank Financial
Institutions in Malaysia;“Distribution Banks” refers to the participating banks where distribution of the Sukuk Prihatin will be made andauthorised as a depository institution solely for the Sukuk Prihatin transaction in accordance to the GFA;
“Financial Institution(s)” means licensed banks licensed investment banks and licensed insurers under the
Financial Services Act, 2013, licensed Islamic banks, licensed takaful operators and licensed international takaful
operators under the Islamic Financial Services Act, 2013 or prescribed development financial institutions under theDevelopment Financial Institutions Act 2002 and those entities as listed in Part 1 of Schedule 4 of the CMSA;“GFA” means Government Funding Act 1983 and any orders, rules, regulations or instrument made thereunder;“Insolvency Matter” means:
(i)
(ii)
(iii)

an act of bankruptcy or insolvency has been committed by the Sukukholder;a petition for winding up or bankruptcy which has been presented against the Sukukholder, its director(s)(ifapplicable) or its partner(s)(if applicable); or
the Sukukholder, its director(s) (if applicable), partner(s)(if applicable) is wound up or adjudicated bankrupt;“Knowledge Pack” refers to the information disclosure pack dated 18 August 2020 in relation to the Sukuk Prihatin;“Murabahah (Cost-Plus Sale)” - A contract that refers to the sale and purchase of assets whereby the cost andprofit margin (mark-up) are made known.
“PDPA” means the Personal Data Protection Act 2010 and any orders, rules, regulations or instrument madethereunder;“Primary Distribution Bank”, “us” or “we” means Malayan Banking Berhad (Registration No: 196001000142) asappointed and authorised as a primary investing institution solely for the Sukuk Prihatin transaction in accordance to
the GFA;“Police” refers to the Royal Malaysian Police;“SC” means the Securities Commission Malaysia;“Sukukholder(s)” means the holders of the Sukuk Prihatin;“Tawarruq (Tripartite Sale)” - Purchasing a commodity on a deferred price and then selling it to a third party forcash.
“Terms and Conditions” means these terms and conditions of the Sukuk Prihatin

Page 6 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

1.

Change of email addresses/ bank accountdetails (from the same bank)a) The Sukukholders shall immediately notify any
changes to the Distribution Banks by contacting
them accordingly (please refer to the respective
Distribution Banks’ website for further information)
where request for such changes can be made within
forty-five (45) calendar days from the closing of theoffering date of the Sukuk Prihatin (the “Period”).
Such notification shall be effective only upon receipt
of such request via maintenance form by the PrimaryDistribution Bank from any of the Distribution Banks
on behalf of the Sukukholders. Upon receipt of such
request, the Primary Distribution Bank shall reflect
such changes in its database accordingly. The
respective Distribution Banks is responsible toperform the required validation process upon receipt
of such request from the Sukukholders at their end
before submitting the maintenance form to thePrimary Distribution Bank for processing andupdating of the information accordingly.
b) The Government and its agent (as may be appointed
for the Sukuk Prihatin) are entitled to assume thatsuch particulars provided at the point of applicationof the Sukuk Prihatin is correct, valid and accurate ifno notification is received informing otherwise within
the Period.

2.

Privacy Acta) Each Applicant to the Sukuk Prihatin acknowledges
and agrees that they shall be bound by therespective PDPA policies of the relevant Distribution
Banks, Primary Distribution Bank, BNM & PayNet(the “Parties”). The Primary Distribution Bank’s
PDPA
policies
can
be
found
at
https://www.maybank2u.com.my/iwovresources/maybank/document/my/en/personal/PDP
A-mbb.pdfb) When the Applicant apply for subscription of the
Sukuk Prihatin, they are deemed to have consented
to the use, processing, sharing, maintaining, storing
and retaining of their personal and other disclosed
data for the Sukuk Prihatin. The consented usage
includes by the Issuer, Distribution Banks, PrimaryDistribution Bank, BNM and PayNet and otherparties involved in the Sukuk Prihatin.
c) If the Sukukholders disclose information of otherindividual apart from themselves for the Sukuk
Prihatin, they hereby warrant that they have obtained
the consent of all such individual to the provision of
their data to the Parties for the aforementioned
purposes and for disclosure to such aforesaid
parties. Apart from the purpose for which disclosure
is made, the only other instances where the
Sukukholders’ information will be disclosed are when
it is:
(i)

(ii)

(iii)

required by law including under any legislation
or regulation, government agency or court
order; orrequired by BNM or the Primary Distribution
Bank for the purposes of completing, verifying
or restricting any transaction made by them; or
authorised by the Sukukholders for clarificationof their transaction records; orPage 7 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

(iv) made to the Credit Bureau pursuant to any
requests by BNM.
The consent given herein shall survive the Sukukholders’demise, insolvency, incapacity and the termination of thisTerms and Conditions.
3.

4.

Distribution Banks and Primary Distribution
Banks’ right to debit or credit the respective
account of the Sukukholders (as the case maybe)Communications/ Informationa)

The Sukukholders agree that the Distribution Banks
have the right to withhold and/or debit the
Sukukholders’ account with the respective
Distribution Banks in such manner the Distribution
Banks deem fit, any sum that has been credited by
the Primary Distribution Bank or the Distribution
Banks (as the case may be) into the Sukukholders
account as and when ordered to do so through any
court order and/or where required by any law,regulations, directions and/or requirements of any
authorities.

b)

The Sukukholders agree for payments or transfersthat they make/receive through any channels of the
network operated by PayNet shall be processed
under the rules and operating procedures of PayNet(collectively “Rules”).

c)

The Sukukholders also acknowledge that for any
disputed transfer or payment (e.g. due to error,
wrong or misleading information or due to scams),
the Distribution Banks or the Primary Distribution
Bank (as the case may be) shall follow the Rules andshall exercise such rights given by the Rules
including debiting the disputed amount from the
Sukukholders’ account and remit it back to thetransferor if the Sukukholders failed to substantiate
the ownership to such amount. The Distribution
Banks or the Primary Distribution Bank also will havethe right to earmark the disputed amount upon
notice of the dispute.

d)

The Sukukholders agree that neither the Distribution
Banks nor the Primary Distribution Bank shall be
liable for any claim, loss, damages, penalty,
charges, cost and expense suffered or incurred by
the Sukukholders in relation to Distribution Banks or
the Primary Distribution Bank complying with theRules.

a) The Sukukholders agree that, at their request, theDistribution Banks are authorised to release
information relating to their account and holdings of
the Sukuk Prihatin via telephone, telex or facsimile
to the Sukukholders.
b)

The Sukukholders authorise the Primary Distribution
Bank to send any account information, updates andreminders pertaining to their holdings of the Sukuk
Prihatin via email to the email address which havebeen provided to the Primary Distribution Bank,
including any other updates that the PrimaryDistribution Bank may make available from time totime during the tenure of the Sukuk Prihatin. BNM
shall not be made liable for the Primary Distribution
Bank’s failure to send any such information, updates
and reminders pertaining to the holdings of the
Sukuk Prihatin.

Page 8 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

c) The Primary Distribution Bank is authorised to rely
and act on confirmation received from theDistribution Banks, on any information provided andauthorised to treat any confirmation which thePrimary Distribution Bank in its discretion believes
came from the Sukukholders (via the Distribution
Banks), as fully authorised by the Sukukholders andto rely and act on it and the Primary Distribution Bank
shall not be liable for any loss suffered by the
Sukukholders if such confirmation did not in fact
come from them.
5.

Statement of holdings of Sukuk Prihatina) A statement of holdings of the Sukuk Prihatin (“estatement”) will be sent via email by the PrimaryDistribution Bank to the Sukukholders via email onmonthly basis.
b) The Sukukholders agree that all e-statements andany other documents that may be related to theholdings of Sukuk Prihatin shall be retained by theIssuer and Primary Distribution Bank in accordancewith their respective retention policy.

6.

Anti- Corruption, Anti-Money Laundering and
Sanctions Law

The Sukukholders hereby represent and warrant to theIssuer, Primary Distribution Bank, Distribution Banks,
PayNet and BNM that:a) Anti-Corruption Laws
It shall at all times operate the accounts registered
for the purpose of its holdings of the Sukuk Prihatin(“Account”) in compliance with all applicable AntiCorruption Laws, policies and regulations.
b) Anti-Money Laundering Laws
(i)

None of the funds moving to and from the
Account represent proceeds of, or will be used
for an unlawful; activity as defined in the AntiMoney Laundering, Anti-Terrorism Financing
and Proceeds of Unlawful Activities Act
2001[Act 613].

(ii) During the tenure of these Sukuk Prihatin, they
will not operate the Account to:1) engage directly or indirectly, in atransaction involving an unlawful activity;
2) conceal or disguise the true nature of any
unlawful activity; and/or
3) utilise any monies from the Account for any
money laundering or other unlawful
purpose.
c) Sanctions(i)

To the best of its knowledge that it is not (i)currently subject to any sanctions administeredor enforced by Malaysia, the United States ofAmerica, OFAC the United Nations Security
Council or other relevant sanctions authority(collectively “Sanctions”), or (ii) located or
resident in a country or territory that is the
subject of United States of America OFAC
Sanctions.

Page 9 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

(ii) It will not directly or indirectly, make available inany way any proceeds of any cash withdrawal
to any individual or entity which is a subject of
the Sanctions.
7.

Agency Agreement for the Commodity
Murabahah transaction of the Sukuk Prihatin(i) Pursuant to the Agency Agreement for the
Commodity Murabahah transaction of the Sukuk
Prihatin, the Sukukholders hereby agree to appoint
BNM to act as its agent on their behalf to undertake
the Commodity Murabahah transaction and to act on
its behalf for all matters relating to the purchase orsale of the Commodity(ies) in relation to the issuanceof the Sukuk Prihatin.
(ii) Please refer to the Agency Agreement for the
Commodity Murabahah Transaction for the Sukuk
Prihatin (as attached herein as Appendix II) for thefull terms and conditions governing the appointmentof BNM as agent for the Sukukholders.
(iii) The Commodity Murabahah transaction will be donein the following manner:a)

BNM shall act as agent of the Sukukholders topurchase the Commodity(ies) on spot basis.

b)

upon completion of the purchase, BNM on
behalf of the Sukukholders will sell the
Commodity(ies) to the Government at a costplus mark-up price to be paid on deferredpayment basis.
1)

the obligation in contract form of theGovernment to settle the sale price isevidenced in the form of the Sukuk
Prihatin issued to the Sukukholders; and2)

profit from the sale represents the profit of
the Sukuk Prihatin, will be paid
periodically on quarterly basis. On thematurity date of the Sukuk Prihatin, theGovernment will pay the principal amountand final profit payable to the
Sukukholders, to redeem the Sukuk
Prihatin; and(iv) BNM as the agent of the Government will sell the
Commodity(ies) at cost price on spot basis and remit
the cash to the Government.
8.

Miscellaneousa)Enquiries/ Complaints

Should the Sukukholder have any queries, concerns orcomplaints in relation to their holdings of the Sukuk
Prihatin, they may contact the respective Distribution
Banks (via the Distribution Banks’ call centre) whereapplication for the subscription was made as listed in the
Appendices of the Knowledge Pack.

b)

Other Terms Specific to the Holdings of Sukuk
Prihatin(i) Any application and/or subscription of the Sukuk
Prihatin by a partnership or sole proprietorship shallbe dealt with based on the details as provided to thePrimary Distribution Bank at the point of application
is made via the respective Distribution Banks and thePrimary Distribution Bank is entitled to assume that

Page 10 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

there’s no change in the membership of the firm
whether by death, bankruptcy, retirement orotherwise and/or the admission of new partner(s)and/or termination of any power(s) of any partner(s)of the partnership firm.
The Sukukholders hereby agree that upon death of
any one of the partnership member, the PrimaryDistribution Bank shall decide on the next course ofaction in relation to the holding of the Sukuk Prihatin
at its discretion.
(ii) In the event of death, bankruptcy or insanity of anyof individual Sukukholder, the holdings of the Sukuk
Prihatin may be claimed and paid to the survivor(s)subject to any statutory compliance (if required) withthe relevant legislation prevailing at such time or any
court order subject to the Primary Distribution Bank
being indemnified by the survivor(s) against any
claim that may be made against the PrimaryDistribution Bank as a result of the PrimaryDistribution Bank making such payment.
(iii) The Primary Distribution Bank may reasonably at its
discretion, suspend any payments to be madepursuant to any holdings of the Sukuk Prihatin by any
Sukukholder for any reason, unless it is prohibited bylaw. Those reasons include:a) a report has been lodged to the Authorities
against the Sukukholder or the Account by any
person including the Primary Distribution Bankand the Primary Distribution Bank is expressly
instructed to suspend the payment;b) an investigation is being conducted by the
Authorities or by the Primary Distribution Bankagainst the Sukukholder or the Account andpayment is instructed to be withheld pending
completion of such investigation;c) failure to inform the Primary Distribution Bank ofany change in the Sukukholder’s personalparticulars such as the contact numbers andemail address;d) the death of the Sukukholder, where theprevailing inheritance law will take precedence;e) the Primary Distribution Bank received directivefrom any Authorities, a court order or other legal
documents prohibiting the Account from being
operated or payments to be made to the Account.
(iv)The Primary Distribution Bank will exercise its
reasonable discretion whether to notify the
Sukukholder on the above suspension. The
suspension can only be uplifted at the discretion of
the Primary Distribution Bank and substantiated by
the relevant documents as may be requested by thePrimary Distribution Bank.
c)

Subscription by a Trustee on behalf of thebeneficiary(ies) to the Sukuk Prihatin(i) Only application made by the Registered Trustee will
be accepted for the purpose of the Sukuk Prihatin.
(ii) In relation to any subscription of the Sukuk Prihatin
by a Registered Trustee on behalf of any of its
beneficiary(ies), the Primary Distribution Bank, thePage 11 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

Distribution Banks, BNM and the Issuer shall beentitled to rely on the following:-d)Obligations Several(a)That the Registered Trustee has confirmed to
the Distribution Banks on the required “KnowYour Clients” (“KYC”) checking pursuant to
AMLA requirements and/or AML/CFT policy
documents issued for the DNFBPs (AntiMoney Laundering, Countering Financing ofTerrorism and Targeted Financial Sanctions
for Designated Non-Financial Businesses andProfessions (DNFBPs) & Non-Bank Financial
Institutions (NBFIs) (AML/CFT and TFS forDNFBPs and NBFIs) and other relevant
documents issued by BNM during the onboarding process;(b)That pursuant to any declaration made / issued
to the respective Registered Trustee in relation
to the KYC requirement during the on-boarding
process to the Distribution Banks, thebeneficiary(ies) is neither engaged in any
unlawful activity nor are the monies obtained
from any illegal source or related to any illegal
activity; and(c)

The beneficiary(ies) subscribing to the Sukuk
Prihatin satisfies the eligibility criteria stated inthis Terms and Conditions of the Sukuk
Prihatin.

(d)Each of the Distribution Banks and the PrimaryDistribution Bank shall not be responsible andliable for any loss or damages incurred by any
party involved in the Sukuk Prihatin in the event
the Registered Trustee applying/ subscribing to
the Sukuk Prihatin fails to comply with the
obligations under paragraph (c) above in
relation to such application / subscription (asthe case may be).

Each of the Distribution Banks and the PrimaryDistribution Bank have their respective roles andobligations which are distinct separate and several andshall not be joint or joint and several.
None of the banks shall be responsible for the
performance of the obligations of the other bank and any
breach, non-performance or default by one bank shallnot constitute a breach, non-performance or default by
the other. Each bank shall be responsible and liable only
for its own actions and omissions and one bank shall not
be responsible for the failure by the other banks to meettheir obligations under this Terms and Conditions.
Nothing in these Terms and Conditions shall be
construed as constituting and evidencing a partnership
between the banks.
Without prejudice to the generality of the above, theobligation on conducting the KYC background check andcustomer due diligence shall be the responsibility of therespective Distribution Banks through their existing
internal on-boarding process and procedures, including
undertaking the background check in accordance with
the Anti-Money Laundering Laws.
The Primary Distribution Bank will assume that all
personal data or such other data disclosed on the

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Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

Applicant is true and correct when received and will
make reliance on the relevant checking done by therespective Distribution Banks and shall not be
responsible and/or accountable for any error(s) or
inaccurate data provided in relation the Applicant by theDistribution Banks.
END OF TERMS AND CONDITIONSPage 13 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

APPENDIX I
LIST OF DISTRIBUTION BANKS

Distribution Banks

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
Notes:

E-Channels Offered
JomPAY
DuitNow
RetailCorporate
RetailCorporate

Affin Bank Berhad
Agrobank
Alliance Bank Malaysia Berhad
Al-Rajhi Banking & Investment Corporation(Malaysia) Berhad
AmBank (M) Berhad
Bank Islam Malaysia Berhad
Bank Muamalat Malaysia Berhad
CIMB Bank Berhad
Hong Leong Bank Berhad
Malayan Banking Berhad
MBSB Bank Berhad
Public Bank Berhad
RHB Bank Berhad
Bank Kerjasama Rakyat Malaysia Berhad
Bank Simpanan Nasional
Bank of China (Malaysia) Berhad
MUFG Bank (Malaysia) Berhad
BNP Paribas Malaysia Berhad
Citibank Berhad
Deutsche Bank (Malaysia) Berhad
HSBC Bank Malaysia Berhad
Industrial and Commercial Bank of China(Malaysia) Berhad
Mizuho Bank (Malaysia) Berhad
OCBC Bank (Malaysia) BerhadStandard Chartered Bank Malaysia Berhad
Sumitomo Mitsui Banking Corporation Malaysia
BerhadUnited Overseas Bank (Malaysia) Berhad
Please refer to the Knowledge pack for further details on the Distribution Banks’ respective transaction
limit

Page 14 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

APPENDIX IIAGENCY AGREEMENT FOR THE COMMODITY MURABAHAH TRANSACTION FOR THE SUKUK PRIHATIN
We, the successful applicants for the Sukuk Prihatin (hereinafter referred to as “Successful Sukuk Prihatin
Applicants”) hereby appoint Bank Negara Malaysia (BNM) as our agent to act on our behalf for all matters relating to
the purchase or sale of commodities in relation to the issuance of the Sukuk Prihatin subject to the following terms
and conditions:
1.

The Sukuk Prihatin is issued by the Minister of Finance, pursuant to section 3 of the Government Funding Act
1983 based on Shariah principles of Murabahah.

2.

The Government of Malaysia and BNM have entered into a legally binding Commodity Murabahah Agreement
for the Sukuk Prihatin which governs the roles and obligations of the Government of Malaysia and BNM withrespect to the issuance of the Sukuk Prihatin.

3.

BNM is hereby authorised and shall, as our agent-4.

a)purchase such commodities as BNM thinks fit on wholesale basis using the proceeds of the Successful
Sukuk Prihatin Applicants; orb)sell the purchased commodity to the Government of Malaysia based on Shariah principles of Murabahah.

BNM may appoint another financial institution or any other institution as BNM deems appropriate to act on its
behalf.

Liability
5.

BNM shall not be liable for any loss, costs, liabilities or expenses arising under this Agency Agreement for the
Commodity Murabahah Transaction for the Sukuk Prihatin (hereinafter referred to as the “Agreement”) unlessit acts grossly negligent in performing its obligations under the Agreement.

Termination
6.

This Agreement shall be terminated in accordance with the following terms and conditions:(a)by BNM giving the Successful Sukuk Prihatin Applicants seven (7) Business Days prior written notice;or(b)by mutual agreement of the parties; or(c)where the Commodity Murabahah Agreement for the Sukuk Prihatin is terminated in accordance with
its terms.

The termination of this Agreement shall not affect the parties’ accrued rights and obligations hereunder.
Force Majeure
7.

If the fulfillment of the terms and conditions of this Agreement is rendered impossible due to force majeure
events, i.e. extraordinary and unforeseen circumstances which are beyond BNM’s reasonable control, BNM
shall not be liable for any delay in performance of its obligations, but shall not be released from the obligations
under this Agreement. BNM shall promptly inform the Successful Sukuk Prihatin Applicants of thecircumstances and shall use all reasonable endeavours to comply with its obligations or provide alternate
performance reasonably acceptable to the Successful Sukuk Prihatin Applicants. In the event suchincapacitation continues for a period of fourteen (14) days from the date of the first such force majeure event,the parties shall have the right to terminate the Agreement after making mutually agreeable reasonable
settlements. For avoidance of doubt, force majeure events shall include war or hostilities, any state of riots,
civil commotion, earthquake, flood, fire, tempest, pandemic and any other natural disaster or any event beyond
the reasonable control of the parties.

Page 15 of 16

Detailed below are the terms and conditions governing the Sukuk Prihatin (“Terms and Conditions”). Investors are advised torequest, read and also understand the information disclosed in the Knowledge Pack before deciding to invest. All the terms used inthis Terms and Conditions shall have the same meaning as defined in Other Terms and Conditions stated herein.

Governing Law
8.

This Agreement shall be governed by and construed in accordance with the laws of Malaysia.

No waiver of rights
9.

A failure or delay in exercising any right, power or privilege in respect of this Agreement will not be presumed
to operate as a waiver and a single or partial exercise of any right, power or privilege will not be presumed topreclude any subsequent or further exercise of that right, power or privilege or the exercise of any other right,
power or privilege.

Severability
10.

If at any time any provision of this Agreement becomes illegal, unlawful, invalid or unenforceable in any respect
under the laws of Malaysia, the legality, validity or enforceability of the remaining provisions hereof shall notin any way be affected or impaired thereby.

Entire Agreement
11.

This Agreement constitutes the entire agreement and understanding of the parties with respect to its subject
matter.

Page 16 of 16