INCENTIVES

SRI Sukuk and Bond Scheme

As part of ongoing efforts to encourage green financing, the SC established the SRI Sukuk and Bond Grant Scheme (formerly known as the Green SRI Sukuk Grant Scheme) in 2018. The Scheme, administered by Capital Markets Malaysia (CMM), covers up to 90% of the costs incurred by issuers on independent expert reviews of sustainable sukuk issuances under the SC’s SRI Sukuk Framework, ASEAN Bonds under the ASEAN Standards and SRI-linked Sukuk under SRI-linked Sukuk Framework. As of June 2022, it had benefited 15 issuers involved in renewable energy, green building and sustainable projects.

  • Objective
    To incentivise eligible issuers in defraying the external review costs incurred for the issuances under the SC’s SRI Sukuk Framework, ASEAN Bonds under the ASEAN Standards and SRI-linked Sukuk under SRI-linked Sukuk Framework.
  • Claim
  1. Issuer can claim for the Grant based on an issue or programme.
  2. Should there be more than one issuance requiring a separate external review, the issuer is able to claim on that review cost incurred.
  • Claim amount
    90% of the actual external review cost subject to a maximum of RM300,000.
  • Eligibility for issuances that qualify for the SRI Sukuk and Bond Grant Scheme
  1. SRI Sukuk issued from 25 August 2020
  2. Bond issued under the ASEAN Standards from 29 October 2020
  3. SRI-linked Sukuk issued from 8 August 2022 onwards
  • Application period for the SRI Sukuk and Bond Scheme
    From January 2021 until fully utilised. Application form is available here. The grant will be paid on a reimbursable basis within 60 days upon complete submission.
  • Tax incentive
    As announced in the Malaysian 2021 Budget, income tax exemptions are provided for the recipient of the SRI Sukuk and Bond Grant Scheme for five years from Year of Assessment (YA) 2021 until YA 2025.

Tax Deduction on SRI Sukuk and Bond Issuances

A tax deduction is applicable for expenditures from the issuance of all types of bonds and sukuk that achieve green, social and sustainable standards in Malaysia that are approved by the Securities Commission Malaysia, up till year of assessment 2025.

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