Best Sukuk Bonds In Singapore (2025 Guide)

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The best Sukuk investment options in Singapore:

MAS Sukuk. Issued by Singapore’s central bank, offering 2.0–3.0% return over 5–10 years with a SGD 500 minimum.
Eastspring Sukuk Fund. Invests in Malaysian sovereign and corporate Sukuk, entry at SGD 1, returns based on NAV.
MAMG Global Sukuk Fund. Maybank’s USD-based fund yields 6.21% with ~4.1 years duration, USD 1,000 minimum.
Franklin Global Sukuk Fund. Offers ~4.5% annual return, with 4–5 years maturity and USD 1,000 minimum.
AIA Shariah Diversified Fund. Mixed assets with high short-term returns, accessed via ILPs starting at SGD 1,000.

Among secular markets in Asia, Singapore stands out for having a government-backed sukuk program supported by a full legal and tax framework. Since 2009, issuances have been handled under the Singapore Dollar Sukuk Facility with central bank oversight. These products are legally recognized as bonds but follow an asset-backed model with fixed returns that align with Islamic principles. As the market evolves toward foreign currency offerings, sukuk in Singapore now include flexible-income models designed for global investors. Through listed funds and ETFs, investors gain exposure to sukuk bonds in Singapore across both SGD and USD markets, without religious restrictions. This article highlights the available options, structures, and key risks to consider when investing in one of the most popular halal investment options.

Risk warning: All investments carry risk, including potential capital loss. Economic fluctuations and market changes affect returns, and 40-50% of investors underperform benchmarks. Diversification helps but does not eliminate risks. Invest wisely and consult professional financial advisors.

Top shariah-compliant sukuk funds available in Singapore

Retail investors in Singapore can access a growing suite of Shariah-compliant fixed-income products through sukuk funds and ETFs denominated in SGD and USD. These options are available via regulated platforms such as POEMS, Fundsupermart, Saxo, and the brokerage arms of major banks via i-trust accounts. Whether you're seeking long-term portfolio stability or faith-aligned income, several accessible instruments provide efficient entry points into the sukuk market.

Below is a curated list of top sukuk investments available to retail investors in Singapore. The table includes sovereign, corporate, and global funds — each compliant with Islamic finance principles and available in local or foreign currency denominations.

Key sukuk investment options
Investment Option	Provider/Issuer	Type	Yield/Return (%)	Duration/Maturity	Minimum Investment
MAS Sukuk	Monetary Authority of Singapore	Sovereign Sukuk (SGS-linked)	~2.0–3.0	5–10 years	SGD 500 (per tranche)
Eastspring Wholesale Sukuk Fund	Eastspring Investments	Malaysian Govt + Corporate Sukuk	~NAV S$1.0468*	3–5 years (rolling)	SGD 1
MAMG Global Sukuk Income-I Fund	Maybank Asset Mgmt Group	Global Sukuk (USD)	6.21	~4.1 years	USD 1,000
Franklin Global Sukuk Fund – A (Mdis)	Franklin Templeton	Global Sukuk (USD)	~4.5 (1‑yr avg)	4–5 years	USD 1,000
AIA Shariah Global Diversified Fund	AIA Singapore/Franklin	Multi-Asset (Sukuk + Equity)	8.98 (6m) / 11.12 (1‑yr)	Variable (ILP**)	SGD 1,000 (via ILP)

* NAV: Net Asset Value as of the most recent reporting period ** ILP: Investment-Linked Plan

Why sukuk make sense for retail portfolios

Sukuk instruments are known for:

Low volatility during market turbulence.
Asset-backed income, not interest-based returns.
Minimal correlation with traditional bonds.
Faith-compliant structures based on profit-sharing, not debt obligations.

This makes them especially attractive to conservative or ethically driven investors looking for fixed-income exposure without violating Islamic finance principles.

If you're considering additional halal investment options in Singapore, you may also want to explore:

Halal stocks in Singapore.
Halal ETFs and index funds in Singapore.
Halal mutual funds in Singapore.

Sukuk market in Singapore: Basic facts

Sukuk are Islamic financial instruments backed by tangible assets, designed to generate returns through profit-sharing rather than fixed interest. Unlike traditional bonds, sukuk reflect partial ownership in a real underlying asset, not a loan obligation. This structure aligns with Islamic financial principles while offering practical value to global investors.

Among non-Muslim-majority countries, Singapore stands out for its leadership in establishing a formal regulatory framework for sukuk. In fact, it became the first secular jurisdiction to introduce a state-backed system for sukuk issuance. The Monetary Authority of Singapore (MAS) launched the Singapore Dollar Sukuk Facility on 19 January 2009, allowing for sovereign sukuk bonds in Singapore to be issued within the domestic market under Singapore’s own legal and regulatory framework, without the involvement of religious bodies.

Examples of issuances include:

City Development Ltd’s Ijara sukuk in 2009.
A sovereign sukuk worth SGD 1.5 billion by Khazanah Nasional in 2010.
Swiber Capital’s SGD 150 million corporate sukuk issuance in 2013.

It’s important to note that what is commonly called sukuk in Singapore differs from conventional Islamic bonds. These instruments are tailored for integration into the global capital system and possess unique structural features that distinguish them from typical debt instruments found in other jurisdictions.

Regulatory structure. The issuing authority is MAS, a secular financial regulator. Shariah compliance is incorporated through contractual and legal provisions, rather than overseen by religious institutions or clerics.
Tax treatment. MAS grants sukuk the same tax treatment as conventional bonds. This includes exemptions from stamp duty and access to standard tax deductions, ensuring a level playing field for investors.
Capital market function. The sukuk framework is primarily geared toward supporting the development of a liquid Islamic finance market within Singapore. These instruments serve a market-building purpose, rather than being tied to local infrastructure projects.
Investor access. There are no restrictions on who can invest. Sukuk issued in Singapore are open to both conventional and Shariah-compliant investors, regardless of religious affiliation or the source of capital.
Certification process. Each issuance undergoes a compliance check conducted by independent Shariah advisors appointed by the participating financial institutions. There are no centralized fatwa boards or religious authorities involved in the certification process.

In essence, the sukuk framework in Singapore is structured through legal, tax, and institutional mechanisms designed to work seamlessly with international finance. It reflects a modern approach to Islamic investing, integrating Shariah compliance within a globally accessible and secular regulatory system.

Regulation and taxation of sukuk bonds in Singapore

Sukuk in Singapore are treated under the Income Tax (Qualifying Debt Securities) Regulations, meaning they enjoy the same income tax, stamp duty, and GST treatment as conventional bonds, as long as they meet prescribed criteria. This 2024 update makes sukuk bonds in Singapore tax-neutral, encouraging more issuers to use Islamic finance without worrying about extra costs or complex tax rules.

These sukuk bonds in Singapore benefit further through incentives for infrastructure-related issuances made before 2025. If a sukuk finances qualifying infrastructure projects, its income may be fully exempt from tax. That positions Singapore as a prime hub for sovereign or corporate green sukuk, especially as global issuance grew to USD 160–170 billion in 2024.

Singapore’s Monetary Authority (MAS) issued the first sovereign sukuk in 2009 through Singapore Sukuk Pte Ltd, marking a significant step in integrating Islamic finance instruments into a secular legal framework. By 2013, domestic firms had followed suit with sukuk based on Ijara structures, signaling growing acceptance of Shariah-compliant models within Singapore’s capital markets. Notably, MAS treats these sovereign sukuk similarly to Singapore Government Securities (SGS) for capital and liquidity purposes, allowing Islamic instruments to operate on equal footing with conventional debt products. This regulatory approach has helped sukuk blend seamlessly into the mainstream financial system.

However, despite this progress, certain structural distinctions persist. Under Singaporean law, sukuk certificates are classified as securities, and their returns are often equated with conventional bond interest. Yet the core advantage of sukuk lies in their asset-backed structure, which links returns to the performance of tangible assets rather than mere issuer obligations. This shift in risk and value basis can influence credit ratings, legal enforceability, and investor protection — particularly in default scenarios. As a result, sukuk offers an added layer of transparency and real asset exposure not typically found in traditional fixed-income instruments.

If you're interested in going beyond sukuk and other halal investment offerings in Singapore and exploring halal investments on a global scale, there’s a diverse and growing universe to consider. From ethical stock trading and Shariah-compliant ETFs to halal-friendly forex and crypto platforms, investors now have access to a range of options that align with Islamic financial principles. These platforms are specifically designed to avoid interest-based transactions and ensure compliance with ethical investing standards. If that resonates with your goals, explore the curated list of global halal investment platforms below and discover one that suits your strategy.

Best brokers that offer Islamic account
	Currency pairs	Min. deposit, $	Regulation	TU overall score	Open an account
OANDA	68		FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA	6.8	Open an account Your capital is at risk.
Plus500	60	100	FCA, CySEC, MAS, ASIC, FMA, FSA (Seychelles)	6.83	Open an account Your capital is at risk.
RockGlobal	50	200		1.97	Study review
Pepperstone	90		ASIC, FCA, DFSA, BaFin, CMA, SCB, CySec	7.17	Open an account Your capital is at risk.
FOREX.com	80	100	CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC	6.95	Study review

Boost sukuk returns in Singapore by targeting hybrid structures and reinvestment cycles

A lot of people judge sukuk by their surface-level returns, but there’s a smarter play. Some high-performing sukuk in Singapore quietly use a mix of leasing and cost-plus models. This blend helps cushion your earnings when interest rates jump around. Instead of getting hit by every rate change, your payouts stay smoother because the structure balances things on the inside. These sukuk don’t usually make headlines, so they’re easy to miss unless you really dig into the documents.

There’s also a trick with reinvesting. A few sukuk let you take the profits they pay out and automatically roll them into other upcoming Islamic bonds from the same group. And they often give you better terms for doing that. It’s a quiet way to stack your returns over time without having to hunt for new investments every few months. Set it up once through your broker or wallet, and the compounding just builds in the background.

Conclusion

Sukuk in Singapore functions as a debt financing instrument within a secular and regulated jurisdiction. Issuances follow procedures aligned with government bonds, using SPV structures and without centralized fatwa certification. Products are accessible through fund and exchange platforms, settled in SGD or USD. The structure supports use in fixed-income portfolios with hard currency exposure and standard tax treatment. Market expansion is linked to the growth of ESG-linked issuance and institutional demand beyond traditional Islamic finance regions. Existing platforms and legal frameworks are used for execution and compliance.

FAQs

What types of assets are most commonly used to back sukuk in Singapore?

Typically, sukuk are backed by real estate, leased facilities, or infrastructure assets with predictable cash flow. These assets allow income distribution in line with Shariah principles.

Can currency risk be hedged when investing in sukuk singapore?

Yes, currency exposure can be managed using Shariah-compliant hedging tools such as non-interest forward contracts or fixed-margin agreements approved under Islamic finance rules.

What hidden risks might investors face in sukuk singapore?

Some issuances use complex SPV structures or synthetic lease models that meet formal compliance but carry legal or operational risks not evident at first glance.

How do sukuk payment structures differ from traditional bonds?

Sukuk payouts are linked to asset performance and not fixed in advance. Returns come from actual profits generated by the asset, not from interest-based obligations.

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