The coupon payments will credit into the respective currency cash account automatically upon receipt from issuers. Generally, it takes 1 - 5 working days to process the coupon payment.

FSMOne acts as an intermediary in the bonds market and we do not participate in the primary market. Kindly refer to the transaction flow below.

Primary Bond Market

Bonds that are issued to the public for the first time in the primary bond market. For example, Malaysian Government Securities are sold at auctions through primary dealers in the primary bond market.

Secondary Bond Market

After the bonds have been sold in the primary market, they can be traded in the secondary market. The secondary market may be the exchange where the bonds are listed (for retail bond issues), or the over-the-counter (OTC) market.

There are no restrictions on non-Malaysia residents in purchasing bonds except for U.S. citizens / residents.

No. You can sell your bonds before it matures and the selling price is subject to market conditions.

Bond prices are available on the individual bond factsheets. 

For Bond orders, the prices shown on FSMOne are for indicative reference only. The actual transacted price might not be the same. However, you could place a limit order if you wish to transact at a particular price.

While for Bond Express, you will trade based on the displayed prices published on the screen.

Accrued interest is the accumulated interest from the last coupon payment date until the settlement date of the bond (i.e. the date which the bond transaction completes).

If you are purchasing a bond, you will pay the existing bondholder (i.e. the seller) the accrued interest first and in the next coupon payment, you are entitled to receive the full coupon based on the nominal you invest, effectively receiving the amount pro-rata.

You may view your bond holdings by logging into your investment account and click on Holdings >> Bonds.

Are coupons or sales proceeds from bond investments taxable for individual investors in Malaysia?

Generally, no. The interest income (coupons) and sales proceeds received by resident individuals from most bonds in Malaysia are exempt from income tax.

This includes:

• Ringgit-denominated Government bonds

• Corporate bonds and sukuk approved by the Securities Commission (SC)

However, it's important to note some exceptions:

• Non-resident investors: Interest earned by non-residents may be subject to withholding tax.

• Specific bond types: There may be specific exemptions or tax implications for certain types of bonds.

What about capital gains?

• Selling a bond for a profit (capital gain) may be subject to tax, but specific exemptions or tax reliefs might apply for long-term investments.

Where can I find more information?

For detailed information and to confirm your specific tax liability, it's recommended to:

• Consult a tax professional: They can provide personalized guidance based on your situation.

• Refer to the Malaysian Inland Revenue Board (IRBM) website: https://www.hasil.gov.my/

Additional Points:

• Corporations: While individuals are exempt, companies incorporated in Malaysia are generally subject to income tax on their bond earnings depending on their tax bracket.

• Tax Incentives: The Malaysian government offers tax incentives for bond investment. However, details can get complex. To understand these incentives, refer to a tax advisor.

• Sukuk: Tax treatment for Islamic bonds (Sukuk) might differ. For specific information, consult the SC website: https://www.sc.com.my/development/icm/incentives

Remember, tax laws can change. Stay updated with the latest information from reliable sources like the IRBM.

Not applicable.