Treasurt Bills and Malaysia Government Securities

CONTENTS

1.0 MEANINGS OF GOVERNMENT SECURITIES 1

1.1 Treasury Bills 2

1.2 Malaysian Government Securities 3

2.0 BACKGROUND OF THE MARKET IN THE CONTEXT OF MALAYSIA 4

2.1 Treasury Bills 4

2.2 Malaysian Government Securities 5

3.0 CHARACTERISTICS OF THE FINANCIAL SECURITIES 6

3.1 Treasury Bills 6

3.2 Malaysia Government Securities 7

4.0 PROCESS OF THE ISSUANCE AND TRADING 8

4.1 Treasury Bills 8

4.2 Malaysian Government Securities 9

5.0 DATA AND STATISTICS 10

6.0 MARKET PERFORMANCE OF THE SECURITY 14

6.1 Malaysian Government Securities 15

6.2 Treasury Bills 16

7.0 DIFFERENCES TYPES OF FINANCIAL SECURITY 17

7.1 Treasury Bills 17

7.2 Malaysian Government Securities 17

a) Callable MGS 17

8.0 PROSPECTUS/ INDENTURE OF MALAYSIAN GOVERNMENT SECURITIES (MGS) 18

9.0 CONCLUSION 19

REFERENCES 20

1.0 MEANINGS OF GOVERNMENT SECURITIES

Government securities are a bond or debt obligation issued by a government authority. It will issued by the government itself or one of the government agencies. Government securities ability refund of principal upon maturity as well as coupon or interest payments periodically. Government securities include savings bonds, treasury bills and notes. It usually used to increase funds that pay for the government’s several expenses, which related to infrastructure development projects. Nevertheless, the return for this securities is low because it is low risk.

In Malaysia, the Government of Malaysia have the responsibilities issued Malaysian Government securities which are the marketable debt instruments. Therefore, Government of Malaysia issued it to increase funds from the domestic capital market to invest the Government’s development expenses and working capital. Besides, Bank Negara Malaysia, which is the central bank in Malaysia acts a role as a banker and adviser to the Government. Bank Negara Malaysia responsible to recommend on the details of Government securities issuance and assists some issuance through several market infrastructures that it owns and operates. At this time, there are various form of Government securities in