Budget 2027: Malaysia plans tokenised government sukuk for retail investors

KUALA LUMPUR, 9 OCTOBER 2026 —

KUALA LUMPUR, Oct 9 (Fintech News Malaysia) – Prime Minister and Finance Minister Anwar Ibrahim unveiled a plan to issue tokenised government sukuk for retail investors as part of the Budget 2027 presentation on Thursday.

The proposal creates a blockchain‑based channel for individual savers to purchase government‑backed Islamic bonds, allowing them to direct their funds toward specific social priorities. Under the scheme, participants will be able to choose whether their investment supports education, healthcare or social protection programmes for low‑income groups, the budget speech said.

The move builds on a series of tokenisation pilots that have already taken place in Malaysia’s sukuk market. In April, Khazanah Nasional priced a RM100 million tokenised sukuk in collaboration with the Securities Commission Malaysia, launching a pilot that targeted institutional investors. The transaction was completed in May, with V Systems providing the underlying technology platform, according to the announcement at the time.

A second pilot was completed in August by CIMB, which used tokenised deposits to settle RM1.38 billion of tokenised sukuk. The CIMB exercise demonstrated the operational feasibility of using digital tokens to settle large‑scale Islamic debt instruments, further cementing the role of blockchain in the country’s financial infrastructure.

The budget speech did not disclose a specific launch date for the retail tokenised sukuk, nor did it set a minimum investment threshold or outline the expected return profile for participants. The absence of these details leaves the precise mechanics of the retail offering to be defined in subsequent regulatory guidance and market arrangements.

By extending sukuk access to the retail segment, the government aims to broaden participation in Islamic finance and align sovereign borrowing with the digital transformation agenda that has been promoted by the Securities Commission and other policy bodies. The initiative is expected to complement existing avenues for retail investors, such as conventional bond funds, while leveraging the transparency and efficiency attributes of blockchain technology.

The involvement of Khazanah Nasional, the Securities Commission, V Systems and CIMB in earlier pilots signals strong institutional backing for the tokenisation framework. Their participation illustrates a coordinated effort among sovereign wealth, regulator and private‑sector players to develop the technical standards and operational processes required for a retail‑focused tokenised sukuk market.

The next steps will involve the issuance of detailed guidelines on investor eligibility, token issuance mechanics and settlement procedures. While the budget did not set a timetable, the government’s commitment to the tokenised retail savings sukuk shows a strategic push to integrate fintech solutions into Malaysia’s Islamic finance ecosystem, positioning the country as a regional leader in digital sovereign debt offerings.

Related: Khazanah Nasional · Anwar Ibrahim · Kuala Lumpur