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By January 12, 2012 0 Comments

Skim Amanah Rakyat 1Malaysia (SARA 1Malaysia)

Skim Amanah Rakyat 1Malaysia (SARA 1Malaysia)  is a special Scheme initiated by the Government of Malaysia aimed at promoting the participation of the low-income group to save and invest; apart from to assist them in managing the impact of the rising current cost of living.

The Scheme will be implemented in collaboration with Permodalan Nasional Berhad (PNB) and selected financial institutions.

The newly launched Skim Amanah Rakyat 1Malaysia (SARA 1Malaysia) will be managed by a special purpose vehicle (SPV), Malaysian Development Holdings Sdn Bhd, a wholly owned subsidiary of Finance Ministry Incorporated.

The SPV will provide guarantee for the investments in SARA 1Malaysia, a special scheme aimed at encouraging the lower income group to save and invest.

The scheme is a hybrid of a unit trust investment and loan product, capable of generating consistent cash flow or monthly incentives.  SARA 1Malaysia will be implemented by PNB and the fund will be opened for application starting January 30.
 

Eligibility

Those with a gross income of between RM500 and RM3,000 a month qualify to apply for the investment and savings scheme.

Benefits of SARA 1Malaysia

Through SARA 1Malaysia, those who qualify would have the opportunity to apply for loans amounting to RM5,000 to also invest in the Amanah Saham 1Malaysia (AS 1Malaysia) fund and will receive attractive incentives on the investments they make.

Through the scheme, monthly incentives will be paid to participants in the form of additional AS 1Malaysia units and the investors would only have to ensure the payment of their minimum monthly payments for five years.

This will be unique as the SPV has been able to source the loans at a competitive rate from the participating financial institutions namely Maybank, CIMB, RHB Bank and Bank Simpanan Nasional.

As for the RM500 million financing, RM100 million will be provided by the government in the form of subsidy to SPV to pay the interest rates to the participating financial institutions. Considering the competitive interest rates for loans and the government's subsidy, the SPV will be able to generate good income and dividends.
 

For more details on how to apply for SARA 1Malaysia, kindly visit SARA 1Malaysia portal.

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