The central government of Malaysia issues bills and bonds that are facilitated by Bank Negara Malaysia (BNM). Central government bonds are issued to raise funds from the domestic capital market and for development expenditure. BNM also issues its own treasury bills and bonds for liquidity purposes.

Khazanah Berhad and Cagamas Berhad are the major issuers of quasi-government bonds. Financial institutions, non-financial institutions, and corporations issue private debt and asset-backed securities, commercial papers, and medium-term notes under conventional and Islamic principles.

The central government, Bank Negara Malaysia (BNM), and quasi-government institutions such as Khazanah and Cagamas are the main issuers of public debt. Bonds are issued under conventional or Islamic principles.

Financial institutions, non-financial institutions, and corporations issue private debt and asset-backed securities (ABS), commercial papers (CP), and medium-term notes (MTNs) under conventional and Islamic principles.

CPs and MTNs are short- and medium-term promissory notes used to finance short-term capital needs. MTNs have various forms, including conventional fixed rate, convertibles, low coupons with equities attached, and zero coupon Islamic bonds. Corporate bond structures also vary in terms of coupons: such as fixed or floating-rate, step-up, zero coupon, and with warrants attached. CPs, MTNs and asset-backed securities are also issued by Malaysian corporations.

In November 2004, the Asian Development Bank (ADB) issued a new asset class, Putra bonds, which were MYR400 million fixed-rate bonds. It was the first MYR-denominated bond issued by a foreign entity in Malaysia.

In December 2004, the International Finance Corporation (IFC) issued Wawasan bonds, which were MYR500 million 3-year bonds issued under the Islamic principle of bai bithaman ajil.

For foreign issuers, the Quick Reference for Information on Cross-Border Bond Issuance and Investment, which is linked below, contains information on bond issuance by nonresidents in Malaysia.