A Beginner’s Guide to ASB Financing in Malaysia (2022)

What is Amanah Saham Bumiputera (ASB)? 

Amanah Saham Bumiputera (ASB), which was established in 1990, altered the environment for Bumiputera investors in Malaysia. It is one of the most successful funds managed by Amanah Saham Nasional Berhad (ASNB) also known as ASN Equity Global, a subsidiary of Permodalan Nasional Berhad (PNB), and is approved by the Securities Commission Malaysia.

ASB is a trust fund with ASB units that are fixed at RM1 each. The maximum investment that may be made by any eligible investor is 200,000 units.

It gives Bumiputera citizens a way to save and invest in a long-term, relatively low-risk investment vehicle that also offers a competitive and reliable return on investment. Even in the midst of the 2008 financial crisis, when the KLSE hit a record low of 876.75 points, ASNB was nevertheless able to announce positive dividend returns for all of its funds!

ASB Savings vs. ASB Loans 

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You might be wondering how it is that, when they have the option of making ASB savings, many investors choose to make ASB loans. What distinguishes ASB loans from ASB savings?

ASB Savings

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You invest your own money when you create ASB savings. You can choose how much of your monthly salary you want to put into the ASB investment each month.

For instance, you can put RM 200 each month into an ASB account until the dividend is declared. It should be noted that the dividend rate from your personal funds may be lower than the dividend return from the ASB loan.

If you save RM 200 per month for a year, your total savings would be RM 2,400. Let’s assume that the ASB dividend rate for the entire year is 5%. Your dividend return for the year would be RM 120.

ASB Loan 

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ASB Financing is different because you would use the money borrowed to invest. When compared to ASB savings, the dividend rate that would be earned is considerably higher.

Once your loan application has been granted, you must pay back the amount in monthly installments. Otherwise, if you skip a payment, it can have an impact on your CCRIS record.

Why Choose to Invest in ASB Financing? 

1. No upfront fees

When you invest in ASB Financing, there are no up-front costs. This indicates that more of your money goes toward investing rather than paying fees.

2. Cheap management fees

The ASB Financing fund only charges a 0.35 percent yearly management charge. Other equity unit trust funds, may charge yearly management fees of as much as 1.5 percent.

3. Consistent and reliable annual dividend

Since 1990 and past performance, ASB Financing has produced distribution payable ranging from 5% to 14% annually.

4. Quick withdrawal process

ASB Financing funds are readily available and liquid. ASB Income Distribution and bonus Earned Automatically credited into the respective ASB unit holder’s account. Online withdrawals are limited to RM500 per month. For larger withdrawals and immediate money transfers, visit an ASNB counter or branch.

5. Useful when applying for an overdraft facility

When applying for an overdraft facility (a sort of loan where the bank permits you to take more money than what is in your account), you can use your ASB Financing funds as collateral.

What are the requirements for the ASB loan?

There are a number of requirements that you must fulfill in order to apply for ASB Financing. Each bank that provides an ASB loan has its own set of requirements. As a result, you should check with your agent to make sure you are eligible to apply for an ASB loan. The conditions of ASB loans are generally as follows:

  • Bumiputera or Malay
  • 18 years of age or older
  • Fixed income, minimum 3-month pay stub, and company statement due within 6 months if conducting business
  • not on any bank’s blacklist, despite CTOS and CCRIS records

Regarding the necessary paperwork, you should prepare these:

  • Application form 
  • Copy of IC
  • Copy of your most recent three-month pay stub or bank statement
  • Latest EPF statement
  • Copy of the ASB book’s cover

How to Apply for ASB Loans?

If you’re eligible and interested in applying for the ASB loan, here are some banks which you can apply to: 

1. BSN

Image source: QueenBee by Mek

  • Financing amount:
  • Loan tenure:
  • Stamp Duty: As per the Stamp Duty Act 1949 (revised 1989)
  • ASNB Certificate Fee: RM50 per certificate
  • Insurance (Optional)
  • Will Fee (If any): RM371
  • Late Payment Financing Rates: Monthly installments in Arrears × 1% × Number of Days Overdue / 365

2. RHB

Image source: RHB Bank

  • Financing amount:
  • Loan tenure:
  • Endorsement Fee:
    • ASB Term Loan: RM50 per certificate
    • OD against ASB: RM100 per certificate
  • Stamp Duty: RM10 for Letter of Offer
  • Commitment Fee: 1% on the unutilized portion of the overdraft facility for amount above RM250,000
  • Exit Fee: An exit fee based on the difference between the ASB Board Rate and the Promotion / Special rate is applicable for complete payback of the outstanding ASB Financing made within the first two years of the loan’s disbursement date.
  1. Maybank 

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  • Financing amount:
  • Loan tenure:
  • Stamp Duty:
  • Letter of Offer: RM10
  • Variable Standing Instruction: RM10
  • ASNB Certificate Fee: RM50 per certificate

Please read and comprehend the Product Highlights Sheets and Prospectuses, which are available on the ASNB website (www.asnb.com.my), at branches, and with agents. After receiving the registration form referred to and included with the prospectuses, the unit will be issued.

Monthly Investment Worth Investing

Cara Daftar ASB Online, Semakan Dividen ASB 2021 - Pesan by Qoala

Image source: Qoala Malaysia

Regardless of future performance, it has a low level of risk and consistently yields profits. For those interested, do take a look at ASB Mixed Asset Balanced first.

Undoubtedly, we must invest our savings in order to attain our long-term financial objectives as well as to keep them from being eroded by the rising cost of living.