Amanah Saham 1 Malaysia *UPDATED 3 AUG 2009

*Original article*

Finally, the most awaited moment had arrived. PM Dato Seri Najib had make the announcement today, 31 July 2009 on the launching of the biggest ever trust fund so far with the size of 10 billions. Dear readers, mark your calendar on 5 August 2009, Wednesday to do camping again to buy these units. For employees, hope it is not too late to apply leave now. A shocking news is that Najib also announced that 50,000 fresh undergraduates of local public institutions of higher learning will get 100 units of this newly launched Amanah Saham 1 Malaysia. Though the amount is not that big, it however provide a starting point or catalyst for the students to learn how to save their money and generate some income through long term investment plan. In another view, it make the students easier to make additional investment in the future by having an account now. Let's have a look to this plan.

From what I can see, this plan is exactly the same like Amanah Saham Malaysia which I bought few weeks ago. It just differs in terms of the date of birth and the fund size. Haha.

On the maximum investment, there is a difference from ASM. Initially, ASM was sold to all and later on a new system of selling based on race quota was introduced. For this plan, the new system is used. Though it is stated unlimited investment, I think the maximum investment or limit will still apply even after the initial sales period.

As stated, those aged 55 years and above can only purchase a maximum of 100,000 unit per unit holder whereas those bellow 55 years old can only purchase a maximum of 50,000 units. Such limitation is of course a good news to all poor to moderate income Malaysians but not to the big tauke or big boss. They no longer can enjoy the luxurious of putting their 'side income' amounting hundred thousands ringgit and buy all the units within days of launching.

Another difference is that there is a new ruling stating that 1% of amount invested may be charged after initial sales period. Not to bias, this system seem targeted to charge the Chinese for buying the additional units after initial sales period ended. Why such ruling never been implemented before but now?

As usual, from the 10 billions fund size, there will be 50% allocation to the Bumiputras, 30% to the Chinese, 15% to the Indians and 5% to the other races. So, there will be 3 billions allocated for the Chinese. The Chinese who are well known to buy all the allocation within days may have a better chance among them. This is due to the maximum limit that one can buy. Judging into this, we can expect more people will but this units and hence there will be a longer queue.

The time frame for this allocation to finish up is predicted to be about 2 days with extension of another half day. So, dear friends, are you interested to start your an investment for your own future? As for me at the time of writing, I am still unsure whether to buy or not as I need to consult with my 'financial supplier' first. Most probably I will start it small if I do not get allocation this time. However, this is a golden opportunity to all Malaysians and I foresee to have a better dividend payout looking to the current economic that is slowly recovering. I would like to share a tip for buying this units.

QUEUE up as early as possible. It's better for you to suffer from getting up early than having a super long waiting time till the end of the day should you come on or after 9-10 am. If your number is still far away, don't be silly to stand at the banks. Go to have your breakfast and estimate the time. Last time when I bought ASM, it was about 6-8 people in 1 hour. If your investment is low lets say RM 1000, take the money out and buy at post office. it will be much faster. If possible, take the application form from the banks and filled before you come so that you won't be lost on that super crowd day.

Bring a headset and enjoy to your music or bring a book. Ask some friends to accompany you and a light meal before you start queuing. if you don't mind people laughing at you, bring a movable stool so that you can sit while waiting. A newspaper is a good companion. Find banks located in a less denser population or lesser Chinese populated area. That's all from now. So, any friends want to camp with me??



*Latest update as on 5 August 2009 together with exclusive clarification of the plan, click HERE*

*Latest update as on 3 August 2009*

I went to Maybank today and the first word they said to me was 'no capital guaranteed, think first before you buy. Apparently, the whole Malaysians was confused and assume this new AS 1 Malaysia to be same as ASM. Well, it is NOT.

Accordingly, this new plan is based on market value and the expected dividend payout is 3.7 to 4%. which is not a guaranteed. (might have loses as well). After the initial sales period, the price per unit is not fixed at RM 1.00 but will shoot up or down depends on the market value. Hence, it poses a risk in the investment but it is not something new in mutual funds like those offered by banks.

Besides, it has also additional charges namely management fees (if not mistaken 5% of the investment value) and also trustee feees (if not mistaken 0.5 % of investment). Such 'new' plan makes the buyers to have a second thought on the reliability and risks of this investment. I am not sure about mutual funds, but if it same like them in terms of risks and return rates, question arise is why don't I invest in established mutual funds? Comments from experts are essential HERE ASAP in helping us making a decision.

For the form, it will be only distributed on Wednesday during launching. TQ.

*UPDATE ENDS*