ASB Financing for Beginners and Should You Consider It

Amanah Saham Bumiputera (ASB) is a well-known unit fund trust for Malaysian Bumiputeras. This page describes how to invest in ASB ASB financing in further detail.

If you want to determine your estimated monthly payment amount if you choose ASB financing, check out this ASB loan calculator from RHB group. Note that the calculated repayment schedule is only for illustration purposes. The payment amount and interest charges applicable to the loan facilities are only accurate if interest rates remain unchanged.

ASB was introduced on January 2, 1990, by Amanah Saham Nasional Berhad, or ASNB, for all Malaysian Bumiputeras to provide an alternative savings vehicle to most people. ASNB is a unit trust management firm owned by Permodalan Nasional Bhd (PNB).

This unit trust fund seeks to provide investors with stable, competitive returns. Consequently, ASB was created as a fixed price equity income fund with a unit price of RM1.00 and no sales charges or redemption fees.

ASB has a maximum input restriction of RM200,000, beyond which investors cannot increase their investment amounts. However, the fund does not impose a cap on the account’s worth. Consequently, capital gains kept in an ASB account can surpass RM200,000. Investors can choose their investment amount at any time and purchase additional units through the relevant ASB agents.

The ASB dividend is distributed annually but calculated monthly based on the month’s minimum amount.

How do I purchase shares in the ASB fund in Malaysia?

Banks and non-banks are the two sorts of approved agents from whom you can purchase ASB. 

Currently, most agent banks offer internet banking services for ASB investors to replenish or subscribe for additional units. Online banking also permits investors to make investments on behalf of a third-party ASB account.

Pos Malaysia is the only nonbanking agent. Pos Malaysia has partnered with several banks to provide Shared Banking Service (SBS) at most of PosNiaga’s locations. Consequently, investors can check the status of their ASB fund application approval via the kiosk service at Malaysian PosNiaga locations.

Current trends

In December 2020, the Chairman of PNB, Tan Sri Zeti Aziz, announced an ASB distribution of 5 sen per unit, totaling RM7.6 billion paid out to more than 10.2 million unitholders.

This is a competitive number that ASB continues to provide despite the volatile market situation. Considering how devastating Covid-19 has been for Malaysia’s economic performance and compared to other low-risk assets on the market, ASB’s performance has been surprisingly strong.

The fact that ASB can still pay a dividend of 5 cents per share, or 5 percent, despite a market downturn and a global pandemic is an impressive feat in and of itself.

Should one continue to invest in ASB?

As long as the returns on ASB exceed the inflation rate, it remains an excellent investment. As of June 2020, the inflation rate in Malaysia is 4.5%; thus, returns on your ASB investment is still a good result.

You can use an online asb loan calculator to determine your estimated monthly payment amount. The calculation gives you a ballpark if you can repay the loan within your specified tenure.

Some individuals aspire to invest in ASB but do not have sufficient funds, especially given the current economic crisis that happened between 2020-2021. The good news is that several Malaysian banks, like the RHB Group, offer ASB loans for investors to finance their investments.