Market Structure

Malaysian Government securities are marketable debt instruments issued by the Government of Malaysia to raise funds from the domestic capital market. The central bank (Bank Negara Malaysia) acts as banker and adviser to the Government and assists in planning and facilitating issuances through market infrastructure that it owns and operates. Currently, the various forms of Government securities in Malaysia are:

• Malaysian Government Securities (MGS) - long-term interest-bearing debt securities issued by the Government of Malaysia to raise funds from the domestic capital market for development expenditure.
• Malaysian Government Investment Issues (MGII) - long-term Islamic Government securities, issued based on established Shariah principles
• Malaysian Treasury Bills (MTB) - short-term discount securities issued by the Government of Malaysia for working capital
• Malaysian Islamic Treasury Bills (MITB) - short-term Islamic Government securities, issued based on established Shariah principles

Besides Malaysian Government securities, local corporates also tap the bond market for financing through issuance of bonds, medium-term notes and commercial papers.