{"id":4471,"date":"2009-04-23T16:13:30","date_gmt":"2009-04-23T08:13:30","guid":{"rendered":"http:\/\/poobalan.com\/blog\/?p=4471"},"modified":"2009-04-23T16:13:30","modified_gmt":"2009-04-23T08:13:30","slug":"only-10-percent-of-asm-units-taken","status":"publish","type":"post","link":"https:\/\/poobalan.com\/blog\/indian\/2009\/04\/23\/only-10-percent-of-asm-units-taken\/","title":{"rendered":"Only 10 percent of ASM units taken"},"content":{"rendered":"

This news<\/a> is a bit of a revelation. As expected the Chinese quota was sold out within hours.\u00a0 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).<\/p>\n

Let’s look at the poor take up of the bumiputra group. Possible reasons:<\/p>\n

– no money\/cash<\/p>\n

– not able to secure loan<\/p>\n

– have other avenue of investment that gives better return (like ASN, Tabung Haji, Bank Coperatives etc)<\/p>\n

– Most have already invested all the available funds<\/p>\n

I think perhaps theres too many options for the bumiputra until there’s a glut – less people, more units and products.<\/p>\n

How about the Indians? Why only 10% have taken up the offer?<\/p>\n

– no money\/cash<\/p>\n

– not able to secure loan<\/p>\n

– already invested in other funds (like unit trust or share market)<\/p>\n

– lack of awareness<\/p>\n

The return from the units is between 6.5 and 8.5% per annum, which is higher than goverment bond, EPF, and fixed deposits.\u00a0 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.<\/p>\n

Despite the lack of take up by the community, MIC is proposing a bigger allocation<\/a>, 25%, for the community:<\/p>\n

\n

THE MIC has asked the Govern\u00adment 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\u2019s 1.5% equity participation target, as outlined in the Ninth Malaysia Plan, by next year.<\/p>\n

Tamil Nesan,<\/em> 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.<\/p>\n<\/blockquote>\n

What MIC can also propose is a scheme just like for the Malays, low interest (or better still,\u00a0 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.<\/p>\n","protected":false},"excerpt":{"rendered":"

This news is a bit of a revelation. As expected the Chinese quota was sold out within hours.\u00a0 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 […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[115,84],"class_list":["post-4471","post","type-post","status-publish","format-standard","hentry","category-indian","tag-economy","tag-funds"],"_links":{"self":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts\/4471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/comments?post=4471"}],"version-history":[{"count":2,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts\/4471\/revisions"}],"predecessor-version":[{"id":4483,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/posts\/4471\/revisions\/4483"}],"wp:attachment":[{"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/media?parent=4471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/categories?post=4471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/poobalan.com\/blog\/wp-json\/wp\/v2\/tags?post=4471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}