Sukuk investors are maintaining support for Malaysian Prime Minister Najib Razak as he sacrifices budget deficit targets to sustain development spending.

Funds accepted a lower yield when the nation kicked off 2015's Islamic bond issuance on Jan 14, even as slumping oil prices strained government finances. The seven-year debt was sold at 4.19 percent, versus 4.22 percent in the secondary market. Bids totaled 2.53 times the 4 billion ringgit ($1.1 billion) on offer, the strongest demand since August. The ringgit fell 1 percent on Tuesday when Najib raised the deficit goal to 3.2 percent of GDP from 3 percent.

A plan by Barclays Plc to include Malaysian sovereign sukuk in its benchmark global index will widen the investor base and bring in more overseas cash, according to CIMB Group Holdings Bhd and Malayan Banking Bhd.