Malaysia has no immediate plans to issue a second global Islamic bond sale despite a successful US$600 million (RM2.3 billion) issuing in 2002, Second Finance Minister Nor Mohamed Yakcop said today.

"The first Sukuk, Islamic bond, was very successful. Raising a second Islamic bond will depend on the needs of the country," he told reporters on the sidelines of the two-day Islamic Development Bank governors meeting.

"At this point of time, a second Sukuk is not on the calendar," he said, responding to market expectations that another round would be in the offing.

Cut in budget deficit

In June 2002, Malaysia sold US$600 million of five-year bonds based on Islamic law. It was the first US-dollar debt to be sold by a government in line with the Islamic ban on the payment or receipt of interest.

Malaysia has so far relied on the domestic sale of bonds to fund its budget deficit.

But it has vowed to reduce its deficit, estimated at about RM17.6 billion this year or 3.8 percent of gross domestic product, by cutting development projects and reducing fuel subsidies.