SHAH ALAM, July 28 — The state government will assess the potential risks if the Menteri Besar Selangor (Incorporated) (MBI) plans to subscribe to Islamic bonds or sukuk.
Dato’ Seri Amirudin Shari said the risk assessment includes the total cost that would be incurred in addition to using the state government’s assets as collateral.
The Menteri Besar said MBI also has to convince the State Executive Council Meeting to ensure that the move would not burden the state, particularly the loss of assets.
“Certainly, we will discuss all potential risks including charges and pledging our assets to banks or financial institutions.
“To subscribe to sukuk, it would depend on the rating given by banks to our institutes, such as state subsidiaries,” he said when answering a supplementary question from Gombak Setia state assemblyman Hilman Idham on the risks when subscribing to sukuk.
Previously, Amirudin said as of now, he was not informed on whether MBI has the plan to subscribe to sukuk to raise funds for high-capacity projects.
