Posts Tagged ‘Economy’

Amanah Saham 1Malaysia (AS1M) for Indian Community

January 26th, 2018
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According to the Malaysian Indian Blueprint, one of the initiatives planned for the Indian community is a special allocation to invest in Amanah Saham 1Malaysia (AS1M). This was also mentioned in Budget 2018 speech by Prime Minister. A total of RM1.5billion is allocated via AS1M fund to the community, with a maximum limit of 30,000 units per person. That means about 50,000 people if everyone fully utilise their allocation.

The agency in charge is SEDIC, an unit under the Prime Minister’s Department. You can find SEDIC’s FB post on AS1M here.

To help those in low income category, specifically the B40 group (having household income below Rm4680 as of 2017), the government is given a soft loan of RM5,000 per person. RM500 million is allocated for 100,000 families via interest-free loan for five years (monthly repayment of RM83++ for 5 years). It is expected that the return from the investment will be sufficient to pay for the loan.  However based on the dividend rates for past few years, assuming return of 6.5%, the dividend will be RM325 while repayment for 12 months will be RM1,000.

[click to enlarge]

 

The procedure to apply for the RM5,000 soft loan will be announced in February and remember it is for the low income category define as in B40 group. However, regardless of being in B40 group or not,  you can start buying the AS1M units starting from Monday 29th January 2018.

The units can be bought beginning 29 January 2018 from ASNB branches  (click here to see list of branches) or its agent banks (Maybank, CIMB, RHB, POS Malaysia, Affin Bank, Alliance Bank, Am Bank, Bank Muamalat or Bank Simpanan Nasional).

For those already having invested in AS1M before, you can top-up until reach 30,000 unit at the branches or via online at myasnb.com.my .

If you are wondering about the unit prices, AS1M trades at RM1 per unit as shown below (price from ASNB website:

Let’s do a rough calculation for 5 years with 6.5% return per annum:

Year Investment Value (RM) Dividend (RM)
2018 5000.00 325.00
2019 5325.00 346.13
2020 5671.13 368.62
2021 6039.75 392.58
2022 6432.33 418.10
6850.43

With RM5,000 investment, you can get RM6,850.43, a return of 37% or average of 7.4% per year.

Its obviously better than FD rates, but face competition from unit trusts which tend to offer better returns (Disclaimer: I’m not promoting any unit trust products).  For those looking to diversify their investments, can consider investing some amount in AS1M or even other unit trusts under ASNB provided you are qualified.

Read the  ASNB Statement on AS1M.

And finally, some info on eligibility:

 

    1. Kriteria Kelayakan
      1. Apakah kriteria–kriteria kelayakan untuk memohon Skim ini?
        • Permohonan terbuka kepada masyarakat India warganegara Malaysia:
          • Akaun Dewasa (18 tahun ke atas)
          • Akaun Bijak (ibu bapa atau penjaga sah yang melabur bagi kanak-kanak warganegara yang berumur 18 tahun dan ke bawah serta mempunyai sijil kelahiran yang sah).
        • Pemohon tidak mempunyai pegangan unit AS 1Malaysia atau telah menjadi pemegang unit namun mempunyai pegangan unit kurang daripada 30,000 unit.
        • Pemohon tidak diisytiharkan muflis semasa memohon serta sepanjang tempoh penyertaan dalam Skim.
    1. Cara-cara Memohon
      1. Bagaimanakah saya membuat permohonan untuk melanggan unit-unit tambahan AS 1Malaysia ini?

Pemohon yang berminat bolehlah datang ke Cawangan ASNB atau mana-mana Ejen ASNB di seluruh negara:

        • Maybank
        • CIMB
        • RHB
        • Pos Malaysia
        • Bank Simpanan Nasional (BSN)
        • Affin Bank
        • Alliance Bank
        • AmBank
        • Bank Muamalat Malaysia Berhad

 

      1. Selain daripada Cawangan ASNB dan Ejen ASNB, apakah saluran lain untuk saya melanggan unit-unit tambahan AS 1Malaysia ini?
        1. Portal myASNB: Pemegang unit sedia ada yang mempunyai baki kurang daripada 30,000 unit dalam AS 1Malaysia dan telah mendaftar sebagi pengguna Portal myASNB boleh menambah pelaburan AS 1Malaysia di Portal myASNB, tertakluk kepada unit-unit yang masih ada untuk dilanggan.
        2. Perbankan Internet: Tambahan pelaburan juga boleh dilakukan secara atas talian menerusi Maybank2u, CIMBClicks, AffinOnline dan RHBNow, tertakluk kepada terma dan syarat serta unit-unit masih ada untuk dilanggan.
        3. Bentuk bayaran: Pemohon boleh membeli unit-unit tambahan AS 1Malaysia menggunakan Tunai/ Bank Deraf/Cek/Banker’s Cheque, tertakluk kepada unit-unit yang masih ada untuk dilanggan.

 

         Perhatian:

 

  • Pelaburan melalui cek atau bank deraf atau Banker’s Cheque hanya boleh dilakukan di ASNB Kaunter Utama Kuala Lumpur atau cawangan ASNB sahaja.

 

  • Cek pelaburan tambahan hanya diterima atas nama ‘Amanah Saham Nasional Berhad’.
  • Pelaburan melalui cek atas nama `Pemegang Unit’ atau Penjaga Berdaftar’ dibenarkan sekiranya cek dikeluarkan oleh yang berikut:

 

 

            1. Kerajaan Malaysia
            2. Syarikat di bawah Kumpulan PNB
            3. Syarikat Berkaitan Kerajaan (GLCs)
            4. Syarikat Penerima Labur PNB (Investee Company)

         Permohonan melalui Cek/Bank Deraf/Banker’s Cheque adalah tertakluk kepada tarikh Cek/Bank Deraf/Banker’s Cheque dijelaskan.

        1. Skim Pelaburan Ahli KWSP : Pemohon boleh membeli unit-unit tambahan AS 1Malaysia melalui Skim Pelaburan Ahli KWSP, tertakluk kepada unit-unit yang masih ada untuk dilanggan. Transaksi langganan unit hanya akan disahkan apabila ASNB menerima pembayaran dari pihak KWSP (mengambil masa 7 hari bekerja daripada permohonan pelabur diterima hingga pembayaran oleh KWSP).

 

Walau bagaimanapun langganan unit-unit tambahan AS 1 Malaysia ini berdasarkan ‘siapa cepat dia dapat’ dan tertakluk kepada unit-unit yang masih ada untuk dilanggan.

Read more at ASNB page.

Housing Income Index: RM14,500 income to buy house in Klang Valley

February 18th, 2014
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The Star frontpaged an interesting article today. How much should a family earn in order to afford a house in Klang Valley? A question that we all wonder about. Well, according to a survey done by Sime Darby Property Bhd in collaboration with the Faculty of Built Environment of Universiti Malaya, its….RM14,580!

The survey covered 1,529 respondents, of whom 1,183 were home owners at 12 locations: Bukit Jelutong, Denai Alam, Bukit Subang, Bandar Bukit Raja, Subang Jaya, USJ, Putra Heights, Ara Damansara, Mont Kiara, Melawati, Kajang and Nilai. I suppose the balance 346 respondents were (i) renting, (ii) not from those areas, or (iii) refused to divulge house ownership info.

Wonder why areas like Puchong, Cheras, Dengkil, Banting, Kapar, Putrajaya, Cyberjaya, Semenyih, Serdang, Klang, Shah Alam, Sg Buloh, Rawang etc not covered. Hope they conduct a second round of survey to cover these areas.

Average household income

Average household income

[image from The Star] [click on image to view larger size]

Some analysis of the respondents: 94% are married. 73% are male. 59% work in private sector; 20% are self-employed, and 14% work in government. No mention if the income is from both spouse or single spouse.

13% have post-grad qualifications, 40% have bachelor degree, and 21% have a diploma. 68% are Malay/bumiputra; 30% Chinese and just 2% Indians.  Looks like not many Indians live in these places. And seems like the affluent Malays/bumiputera are quite alot.

Quite importantly, the age group of respondents is missing. Show this info to any adult below age 30 and see if they fit into this income group. If the respondents are into their late 30s  or more, then the young adults can’t even think about buying houses in these places. 10-15 years down the lane, how would it be? As it is, our parents could afford to buy house in these locations when they were young. Read another article in the Star where Mr Gill (age 63) bought house in SS12 Subang Jaya way back in 1985 (age 34) for RM200k that took quarter of his combined income with wife. Now at age 34, what can you buy?

It will interesting to also identify the household size of the respondents. Does the average income consider the household size (kids, maid, parents, siblings etc)?

The other part of the survey covered their expenditure information. So, 12% of income goes into savings, translating into RM1749.60 on average.  How many percent can the rest of us save? Transportation is 16% (Rm2,332.80), Food 15% (RM2,187), mortgage 14% (RM2,041.20), another 15% for other loans (RM2,187), 13% for other expenses (Rm1,895.40), childcare/education 7% (RM1,020.60) and insurance 6% (RM874.80). Most likely these houses have two or more cars. How is your expenses like?

Ok, let’s look some other statistics from DOS and EPU which both refer to Household Income Survey (last done in 2012). All stats below refer to Klang Valley and/or urban figures wherever possible:

  • The top 20% of urban dwellers earned a monthly average of RM13,654 while the middle 40% earned average of RM5,294. Don’t bother looking at the bottom 40%, middle 40% already can’t own house in those 12 places (and I suspect many other places) even with double income).
  • 41% of urban dwellers earn RM5,000 or more.
  • The average monthly income for urban dweller is RM5,742. Selangor residents earned RM7,023 while KL residents RM8,586.

Looking at HIS statistics, using average salary earned by those staying in Selangor or KL and double it (both spouse working), then you can buy house in those areas. However taking into account that 41% earn more than RM5,000 and that the top 20% earn average of RM13.6k, then we are looking at a small pool of between 20-40% of people affording to buy houses.

The survey covers affluent areas, and I suspect its to plan for building more affordable homes for the those households who can afford to earn nearly triple the national average income.

BTW, looks like I can’t afford a house in Klang Valley if want to buy now.

Below is the article from the Star:

You must have an average household income of RM14,580 a month to afford a home in the Klang Valley, according to a recent study.

The study – spearheaded by Sime Darby Property Bhd in collaboration with the Faculty of Built Environment of Universiti Malaya – takes into account the current household spending trend, price of homes and mortgage rates.

It found that certain groups of buyers interested in strategic areas can have access to houses that are priced at 56 times their household income.

The study also found that this same group can afford to spend up to 26% of their monthly household income to service a mortgage.

It identified strategic areas in the Klang Valley that are considered not only accessible but have the potential to appreciate in value. They include Nilai, Denai Alam, Bukit Jelutong and Bukit Subang.

A report of the study said that houses in selected areas in the Klang Valley remain accessible to homeowners who may be looking to invest in a second home.

The Housing-Income Index which was launched here yesterday by Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan, who said the survey results would be useful for potential house buyers.

“The Index and its key findings had been reviewed by the ministry, and we find that the information is valuable as it can help policy makers and developers work hand-in-hand to build more houses that are not only accessible. but which can appreciate in value,” he said.

Abdul Rahman hoped that other property developers and the academia can carry out similar surveys in the country.

Based on the findings, Sime Darby said that 68% ofplanned housing schemes in the Klang Valley were in the accessible range.

“We intend to utilise the results to develop innovative, high quality products that are accessible and meet market needs,” said Sime darby Property managing director Datuk Seri Abd Wahab Maskan.

Household Expenditure
[image from The Star]

The Housing-Income Index was developed to gain a better understanding of home-owner profiles, specifically household incomes and spending patterns in relation to owning a home.

The study covered 1,529 respondents, of whom 1,183 were home owners at 12 locations: Bukit Jelutong, Denai Alam, Bukit Subang, Bandar Bukit Raja, Subang Jaya, USJ, Putra Heights, Ara Damansara, Mont Kiara, Melawati, Kajang and Nilai.

source: http://www.thestar.com.my/News/Nation/2014/02/18/Klang-Valley-still-affordable-A-household-needs-monthly-income-of-RM14580-to-buy-a-home/

Welcome 2014!

December 31st, 2013
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Happy New Year Folks! Wishing everyone a great year ahead.

Its Visit Malaysia 2014 so let’s put up our best for our visitors.

Times are going to be hard so…

Tight belts

 

[image credit: http://andreasjenk.wordpress.com/2011/08/06/tightening-our-belts/]

My take on housing woes

October 17th, 2013
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This is some sort of a record. My last posting was on 30th August! Plenty of things I want to write about, but lack time for proper research and writing. End up tweeting those issues I wanted to blog about.

Anyway, I was responding to a posting in FB which stated “So HK and singapore house prices to come down by 20%. Malaysia how?”  and thought why not collect those responses and blog it. Basically, what I think should be done to curb prices. Apologies for the informal language.

in my taman which is abt 13 yrs old, the new phase being constructed which is 2.5 storey is frm 800k to 2.2mil. The land was bought so long ago. Building material n construction quality is average even though this company is top 20 in malaysia. First phase years ago was 140k. So what justifies the price? Labor? Material? Advertising? Value added stuff?

Govt is being too soft. Should review pricing structure. If developers threaten no prob, can take over projects. Deny license for houses that are too big. Why need 24*80 3 storey house when most families are getting smaller? Just for once in a while relatives visit? 20*70 or 22*75 is ok already.

Labors are moved around from project to project as well. Cost is the spread among projects.

House price should be on land purchase price, not land current price.

Limit an individual to own 3 house max.

Foreigners limit to 10% of any house project and house price min 1mil.

House below 5 yrs not allowed to be sold unless owner pass away or migrate or ill etc.

Stop building houses in hard to reach places for low income group. They r the ones who need public transport. Let bungalows or high condo be built in outskirts.

Houses in city area must not be cost more than affordable monthly repayment amount of 1/3 of salary of average msian.

 

Yes, construction and housing is one of the backbone of country development. But if things that are being developed is of little benefit, then no point developing them. We can’t wait for the “trickle down” effect to benefit the rest.

MALAYSIAN INDIAN AGRO FOOD AND INNOVATION SEMINAR MIFIS 2013

July 23rd, 2013
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Posting this on behalf of organisers. They are organising a seminar on agrofood industry (basically agriculture related to food production – fruits, vegetable, fisheries, animal rearing etc). Those interested can click on the link below or visit http://buoory.blogspot.com/2013/07/malaysian-indian-agro-food-innovation.html

Good opportunity for entrepreneurs to learn about agriculture industry and some of the schemes available.

MIFIS[click for larger image]