PUTRAJAYA: The Malaysian Indian community will be able to invest in Permodalan Nasional Berhad’s (PNB) Amanah Saham 1Malaysia Scheme (AS1M) from Jan 29, onwards.
Some 50,000 Malaysian Indians are expected to benefit from the investment and savings through the subscriptions of an additional 1.5 billion units of the AS1M, said MIC president Datuk S Subramanian.
"The purpose of this initiative is to encourage Malaysian Indian to invest in this unit trust fund, up to a maximum limit of 30,000 units per investor.
"This is inclusive of the units purchased before this.
"The initiative under the Budget 2018, demonstrates the government's commitment to resolve issues pertaining to the Indian community.
"I hope this would also encourage the saving and investment habit among Indians to elevate their social economic status," he said at press conference yesterday.
With the additional 1.5 billion units allotted under the AS1M which was launched in 2009, it would further increase the opportunity for equity participation by the Indians, Dr Subramaniam said.
Investors can subscribe to unit trust by visiting the nearest ASNB branches or its agents which includes Maybank, CIMB, RHB, Pos Malaysia, Affin Bank, Alliance Bank, AmBank, Bank Muamalat.
The investment scheme is aimed at achieving the target earmarked in the Malaysian Indian Blueprint (MIB), which is to ensure at least 50 per cent of registered poor households can demonstrate increased savings within 10 years of MIB implementation.
Apart from the 1.5 billion units under AS1M, Prime Minister Datuk Seri Najib Razak also announced another RM500 million fund, which will be allocated for a five-year period for the bottom40 (B40) group, in tabling the 2018 Budget last year.
Dr Subramaniam said the special interest-free loan scheme over a period of 5 years, will be introduced to encourage and enable participation of some 100,000 Indian household in the B40 group.
"To ensure equitable representation in this investment scheme, the loan will be offered to eligible and qualified B40 families.
"Families registered under the E-kasih system as well those who are outside the system, will be selected and vetted to be given the loan. Some 20,000 families are expected to benefit from this every year.
"This scheme will be able address the lack of participation of the Indian community in the equity capital market. Current representation only stood between 1.1 to 1.2 per cent," he added.
Dr Subramaniam said the scheme will be officially launched by the prime minister next month.
PNB chairman Tan Sri Abdul Wahid Omar who was present at the press conference said investors could enjoy returns up to six per cent per annum.
It was reported that distribution rate for the AS1M in the three years are; 6.4 cents per unit in 2015, 6.1 cents in 2016 and 6 cents last year.