Theoretically, the main different is relying on sukuk trading shall be halal (Box & Asaria, 2005; Jobst, Kunzel, Mills & Sy, 2008) in transactions and fully compliant to shariah Islam (Saeed & Salah, 2014; Taqi Usmani, 2007) but for conventional bonds is not restricted to this constituent. The objective of this study is to investigate the mean different between performance of sukuk and conventional bonds. Throughout, this study focused on the sample of 256 tranche of issuances consists of conventional bonds and sukuk with number of observations of 112 and 144 respectively. Secondary data is gathered from Bank Negara Malaysia (BNM) bond information Hub for fifteen conservative year’s period from 2000 to 2014. The methods of independent sample T-test and Levene’s test are employed in order to test the hypothesis. Interestingly, results revealed there is a significant mean different between long-term conventional bonds and sukuk performance denoting that these two debt instruments are performed in different ways even though trading in the similar marketplace. \nKEYWORDS: [Conventional Bonds; Sukuk; Performance; Malaysia]

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