For one and all
A NEW facility to allow low-income earners to invest in the 1Malaysia Unit Trust Fund is in the works. The scheme was discussed by the prime minister and Permodalan Nasional Berhad (PNB), one of the country's top asset managers. Incorporated in 1978, PNB was "conceived as a pivotal instrument of the government's New Economic Policy to promote share ownership in the corporate sector among Bumiputeras". It manages some RM189 billion in various programmes and is no longer exclusive to Bumiputeras. Its accumulated capital accounts for 15 per cent of investments in the Kuala Lumpur Stock Exchange. The plan for the facility has been submitted to the Securities Commission and Finance Ministry for due diligence and approval.
The fund and the proposal for its extension add to a long list of government initiatives to encourage saving, and give ordinary people a tangible, reasonably high-yielding and virtually risk-free stake in the economy. It is aimed at broadening the base of investors and is part of PNB's effort to educate and engage citizens who might otherwise be woefully short of investment opportunities. Besides enabling the low-income investor to buy in at smaller sums, he will also be given a leg up through special loans to take part in the scheme. To the critics who will point an accusing finger at the government for fostering indebtedness, let it be known that repayment is deducted from annual dividends. To all intents and purposes, the 1Malaysia Unit Trust Fund is another wealth redistribution mechanism. Like all such measures, it does not attempt to level things up by forcibly transferring incomes from one part of society to another. Rather, gains are spread more widely by a greater sharing in a growing economy. It also has a significant psychological dimension: teaching even the poor to manage money wisely and save for the future.
Like other unit trusts run by PNB for over three decades, this fund should also bring predictably good returns. To date, PNB has paid out some RM82 billion in dividends and bonuses. Malaysia is unique among developing countries in its market-friendly strategies for aiding the low-income groups. As the frequently long queues at public offers of Amanah Saham funds attest, Malaysians are thankful for the chance to put their spare cash to good use. Whereas once PNB's agenda was to promote share ownership among Bumiputeras, now that agenda has become inclusive and focused on the low-income groups. For its part, the government is obviously demonstrating its unwavering commitment to making 1Malaysia a reality in substance as well as spirit.
Like other unit trusts run by PNB for over three decades, this fund should also bring predictably good returns. To date, PNB has paid out some RM82 billion in dividends and bonuses. Malaysia is unique among developing countries in its market-friendly strategies for aiding the low-income groups. As the frequently long queues at public offers of Amanah Saham funds attest, Malaysians are thankful for the chance to put their spare cash to good use. Whereas once PNB's agenda was to promote share ownership among Bumiputeras, now that agenda has become inclusive and focused on the low-income groups. For its part, the government is obviously demonstrating its unwavering commitment to making 1Malaysia a reality in substance as well as spirit.
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