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What is Amanah Saham Bumiputera (ASB)?

Updated 25 Jun 2021 – By Team Loanstreet


 

People keep talking about “ASB this” or “ASB that”. But, what is it really? And, why is it so important?

Well, Amanah Saham Bumiputera (ASB) is a unit trust fund for Malaysian Bumiputeras and almost a must to own. However, not everyone understands what ASB is and what makes it so attractive. Here, we explain what makes ASB loans so attractive to investors.

 

What is Amanah Saham Bumiputera (ASB)?

ASB was launched by Amanah Saham Nasional Berhad (ASNB) on 2nd January 1990 for all Malaysian Bumiputeras. The fund’s objective is to provide an alternative savings vehicle for Malaysian Bumiputeras. It aims to generate long term, consistent and competitive returns for investors. As such, ASB was designed as a fixed price equity income fund where the price per unit of the fund is fixed at RM1.00 with no sales charges and no fees for the redemption of units.

ASB has an input limit up to RM200,000 meaning investors can only increase their investment amount until the input limit. However, the fund has no upper limit on the value of the account. Hence, capital gains that are retained in the ASB account is allowed to cause the total amount in the account to exceed RM200,000. Investors are free to decide the amount to invest at any time, and can top-up or subscribe to additional units via the relevant ASB agents.

The dividend of ASB is distributed on yearly basis but computed monthly based on the minimum amount of the month. Aside from being capital guaranteed, historically, ASB has never given returns below 8.5%p.a. (Click here for table of historical returns).This is what makes it so attractive to investors!

 

Where to Buy Into ASB Fund?

There are two types of authorized agents from which you can buy into ASB – Banks and Non-Banks. The agent banks for ASB fund are:

  1. Maybank
  2. RHB
  3. CIMB
  4. Affin Bank
  5. Bank Muamalat Malaysia Berhad
  6. Hong Leong Bank Berhad
  7. Hong Leong Islamic Bank Berhad
  8. Bank Simpanan Nasional
  9. Alliance Bank
  10. AmBank

The only non-bank agent is Pos Malaysia.

Nowadays, most agent banks extend internet banking services for ASB investors to top up or subscribe more units for their ASB investment. Investors are also allowed to make an investment on behalf of third party ASB account through online banking.

As the only non-bank agent, Pos Malaysia has partnerships with several banks to offer Shared Banking Service (SBS) in most PosNiaga’s outlets. Thus, investors may check their ASB fund application approval status through the kiosks service within the PosNiaga’s outlets in Malaysia.

 

Is there Financing for ASB Investment? And is it worth it?

For those who are short of money but want to invest into ASB, some agent banks offer ASB loans. And ASB loans are by default ALWAYS worth it. (Read here for why).

 

If you still have doubts with ASB...

There are arguments as to whether ASB is prohibited in Islam. According to the latest announcement by Muzakarah Jawatankuasa Fatwa MKI on this issue in 2012, the result of the meeting is that investments in ASB and other relative investments are “harus”, where ASB is neither prohibited nor allowed in the point of view of Islam. In the meantime, the Shariah panel in PNB is responsible for reducing the fund’s investments into that which is haram (prohibited).

ASB is attractive and well accepted by all Bumiputeras due to its low risk with high dividend returns and provides additional bonuses to the investors. Always buy into it if you can. And if you do not have sufficient savings to invest in ASB, you can always consider taking up an ASB loan. Remember to make use of Loanstreet's ASB Loan Comparison tool for the fastest and easiest way to get your loan.

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