Unless the parties agree otherwise, the indebtedness arising from Leg 1 is to be secured against acceptable collaterals as set out below. The significance of the pledged collateral is to ensure the payment of the Leg 1 transaction by the Approved User to the Approved Supplier through the set-off settlement mechanism.

• Cash or cash equivalent instruments
• Shariah-compliant securities
• Sukuk (Malaysia)
• Sukuk (Foreign)
• Sovereign bonds (Foreign) – in the event of non-availability of (1) – (4).

Examples of cash equivalent instruments: Fixed deposit, bank draft, etc.

The collaterals given by the Approved User to the Approved Supplier should be managed as per the Policy Document on Rahn issued by Bank Negara Malaysia, which took effect from 1 August 2019.

(Refer to: Bank Negara - Rahn)