Subscribe in a reader | Subscribe by Email This news is a bit of a revelation. As expected the Chinese quota was sold out within hours. For the bumiputra (Malays to be precise), its about 0.45% (7.65 million out of 1.665 Billion) and for the Indians, its 10.71% (53.5 million out of 499.5 million units).
Let’s look at the poor take up of the bumiputra group. Possible reasons:
– no money/cash
– not able to secure loan
– have other avenue of investment that gives better return (like ASN, Tabung Haji, Bank Coperatives etc)
– Most have already invested all the available funds
I think perhaps theres too many options for the bumiputra until there’s a glut – less people, more units and products.
How about the Indians? Why only 10% have taken up the offer?
– no money/cash
– not able to secure loan
– already invested in other funds (like unit trust or share market)
– lack of awareness
The return from the units is between 6.5 and 8.5% per annum, which is higher than goverment bond, EPF, and fixed deposits. But being in an unequal playing field, the funds that are specifically for bumiputras get a higher return of between 10 -13% annum. So, one can understand the lack of take up of ASW and ASM funds by that group.
Despite the lack of take up by the community, MIC is proposing a bigger allocation, 25%, for the community:
THE MIC has asked the Government to reserve at least 25% of the 100 million units of the free Amanah Saham Wawasan (ASW 2020) shares for the Indians to realise the community’s 1.5% equity participation target, as outlined in the Ninth Malaysia Plan, by next year.
Tamil Nesan, in its front page, reported party president Datuk Seri S. Samy Vellu as saying that the MIC would also ask the Government to allocate at least 20% from the 49% of the two billion units of ASW 2020 set aside for non-bumiputras to the Indian community.
What MIC can also propose is a scheme just like for the Malays, low interest (or better still, interest-free) loan for Indians to buy the units under ASW/ASM. This can be done under tie-up with banks like BSN, Agrobank, Bank Rakyat, etc. Then maybe can see some increment in the equity participation.
