KUALA LUMPUR (Oct 21): A government backbencher has called on Putrajaya to open the government bond market to retail investors to boost market activity and provide safer investment options for Malaysians.

"This will increase participation, broaden the funding base, enhance market liquidity, and offer citizens a secure investment option," Datuk Mohd Shahar Abdullah (BN-Paya Besar) said during a debate on the Supply Bill 2025 in the Dewan Rakyat on Monday.

Currently, retail investors can only invest in unit trusts and exchange-traded funds (ETFs), he noted.

Citing an increase in retail participation on Bursa Malaysia from 20.8% in 2019 to 32.4% in 2020, with retail purchases amounting to RM14.3 billion, Mohd Shahar said retail investors' interest could be harnessed to support government bonds.

"We once issued the Prihatin Sukuk worth RM666 million, which saw strong interest from retail investors, indicating potential for government bonds," he said, adding that the country could follow the example of Singapore and Indonesia, where government bonds are available to retail investors.

In addition, Mohd Shahar also urged the government to establish a new long-term economic plan, akin to Vision 2020 or National Transformation 2050, to provide a clear direction for the country's future.

While acknowledging existing frameworks such as the Madani Economy and the National Energy Transition Roadmap, he emphasised the need for a comprehensive vision that extends 30 years ahead.

“This would give us continuity, especially with the mention of the Shared Prosperity Vision,” Mohd Shahar added. 

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