Debt securities in Malaysia's local currency (LCY) market are classified by type of issuer—government, quasi-government and corporate. Lists of debt securities available in this market are provided below.

The types of government debt securities include:

Malaysian Government Securities (MGS)—coupon-bearing, long-term bonds issued by the Government to raise funds from the domestic capital market. They are the most actively traded bonds. In addition, there are callable MGS which gives the government an option to redeem the bond ahead of its maturity date.

Malaysian Treasury Bills (MTB)—short-term securities issued by Bank Negara Malaysia (BNM) on behalf of the government. Treasury bills are used for working capital.

Government Investment Issues (GII)—non-interest-bearing government securities based on Islamic principles issued by the government and placed on a competitive tender with maturities of three to ten years. Funds are used for development expenditures.

Bank Negara Monetary Notes (BNMN)—discounted or coupon-bearing government securities with maturities of 91-, 182-, 364-days and one to three years. BNMNs are issued by BNM to manage liquidity in both conventional and Islamic markets, and have replaced BNM Bills and BNM Negotiable Notes beginning December 2006. BNMNs are offered through competitive auction through principal dealers.

Sukuk BNM Issues (SBNMI)—zero coupon bonds with maturities of one-to-two years. SBNMI are based on al-Ijarah (sale and lease back concept).

Merdeka savings bonds—targeted at retirees by offering a slightly higher return than the market rate, and a tax exemption. A unique feature of Merdeka savings bonds is that they are all based on the Islamic banking concept of bai' al-inah (sell-and-buy-back arrangement).

Other types of government bonds include:

Khazanah bonds—issued by Khazanah National Berhad and guaranteed by the Government, these zero-coupon bonds are based on Islamic principles.

The National Mortgage Corporation (Cagamas) is the major issuer of asset-backed securities in Malaysia. Securities issued by Cagamas are called Cagamas bonds in the domestic market.

There are five types of Cagamas issues:

Cagamas fixed-rate bonds —have tenures of between 1.5 and 10 years with fixed coupon rates determined through tenders submitted by principal dealers. Interest is paid semi-annually.

Cagamas floating-rate bonds—have tenures of up to 10 years and an adjustable interest rate pegged to the 3-month or 6-month Kuala Lumpur interbank offer rate (KLIBOR). The interest rate is reset every 3 or 6 months, with interest paid at those intervals.

Cagamas notes—short-term instruments with maturities of between 1 and 12 months, and issued at a discount from face value to reflect the implied interest rate.

Sanadat Mudharabah Cagamas—Islamic bonds issued under the Islamic principle of Mudharabah (profit-sharing) to finance the purchase of Islamic home-financing debts, granted on the basis of bai bithaman ajil and the purchase of Islamic hire-purchase debts, which are granted under the principle of ijarah thumma al-bai. They are redeemable at par at maturity unless there is principal diminution. Tenures extend up to 10 years.

Sanadat Cagamas—Islamic bonds issued under the Islamic principle of bai bithaman ajil to finance the purchase of Islamic home-financing debts and Islamic hire purchase debts. The bonds are redeemable at par together with the dividend due on maturity date. They also have tenures of up to 10 years.

Khazanah bonds—unsecured zero coupon bonds under the Islamic principle of murabahah, with maturities of 3, 5, 7 or 10 years.

The types of corporate bonds issued on the Malaysian capital market are classified as straight, convertible, bonds with warrants, floating rate, zero coupon, mortgage bonds, Islamic bonds, secured and unsecured bonds, and guaranteed bonds.

Commercial papers (CP) —short-term revolving promissory notes with maturities from 1 month to 1 year.

Medium-term notes (MTN) —have tenors from 1 to 5 years and may be issued both on conventional or Islamic principles, and by direct placement or tender.

Quarterly statistics of corporate debt securities approved by the Securities Commission are available through the web link below.