Everything You Need To Know About Amanah Saham Bumiputera (ASB)


Launched in 1990, Amanah Saham Bumiputera (ASB) changed the landscape of investment for Bumiputera in Malaysia. It is one of the best performing fund under PNB management.

An income equity fund with a fixed price per unit at RM1.00, it is one of the few funds that offers a capital guarantee. It provides an avenue for Bumiputera to save and invest in a relatively low risk and long-term investment instrument, with consistent and competitive return of investment.

Even during the 2008 economy downturn where the KLSE crashed to a low of 876.75 points, ASNB were able to declare positive dividend returns for all their funds!

However, each eligible investor is limited to a maximum investment of RM200,000.

Why should you invest in ASB?

ASB should be the answer to any first time investors who have a low risk appetite due to these advantages:

  1. There is no upfront payment such as processing fee or management fee.
  2. Money invested (capital) will not depreciate as investment returns are guaranteed by the government and the investment made by the ASB is also controlled by the government.
  3. Monthly benefits of the average percentage of annual interest will be applicable for investment as early as the first month.
  4. ASB’s returns has been quite consistent, with an average rate of income distribution per unit or investment interest between 7.30% – 7.65% (2009-2011). This rate is expected to increase each year in line with the economic development of Malaysia.
  5. In addition to the investment dividends, ASB also give investors a bonus for each unit of investment. Bonus units will be calculated at the same time investment interest calculation is performed, usually on December 31 of each year.
  6. Withdrawal of investment in the event of emergency can be done immediately during working hours without the need to wait for the money for two to three weeks.
  7. ASB Certificates can also be used as in local banks as security to get a loan in the form of bank overdraft.

No capital? What to do?

Sounds like a good deal? Most people are skeptical towards investment due to the lack of knowledge first and then usually lack of capital when they want to start. Money makes money, after all.

However, ASB provides a few options for those who are keen to invest but have not saved up any money to kick-start their financial dreams.

EPF Members’ Investment Scheme

This scheme allows EPF members with savings that exceed their Account 1 basic savings amount by at least RM5,000 to withdraw 20% from the excess savings to be invested in Ministry of Finance approved Fund Management Institutions (FMI), such as ASB.

For more information on this scheme, go here.

Salary Deduction Scheme

This scheme is applicable for ASB’s unitholders only — for both public and private sectors.

For more information on this scheme, go here.

ASB Loan

Some local banks provide ASB loans for investors who are interested to invest in ASB but do not have to resources to do so. However, is it worth it?

Here’s what ASB loan all about:

Maximum loan tenure: 30 years

Interest rates: From as low as BR + 1.20%

Maximum loan amount: RM400,000

Here’s the math:

ASB loan amount: RM200,000.00

Interest rate: (BR) + 2% p.a.

Loan tenure: 25 years

Monthly instalment: RM1,193

Total paid for first year: RM14,316

Return from ASB:

Average rate of dividend: 8%

RM200,000 x 8% = RM16,000

Your return in the first year: RM16,000 – RM14,316 = RM1,684

If you are confident that you will are able to consistently service your ASB loan for the first year, getting a loan to invest in ASB is quite an attractive way to get your foot in.

asb table


The best part is that you only need to service it for the first year as long as you ensure your annual repayments are less than the expected returns. Since the returns are pretty consistent you can easily plan it out so you only service the loan for the first year then let the ASB returns from subsequent years pay off the loan while also bringing it some extra returns on after that!

It is undeniable that we need to invest our savings to protect it from being eroded by the ever-increasing inflation, and also to achieve our long-term financial goals.

If you are eligible, why not?

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