AS 1 Malaysia fund

WE can expect our equity market to rise a bit in the next few months. This is because the Government will have more money to push up Index linked stocks, with the launch of the Amanah Saham 1 Malaysia or AS 1 Malaysia.

This fund is going to have a size of 10 billion ringgits, more than the money injected into valuecap earlier.

But stock performance in the long run  depends on the actual balance sheets which will depend on how the economy is doing. I believe the worst is over but the world is not out of the woods yet.

In the meantime, there will be high volatility in the world markets, which will have effects on our own equity market.

Even in the launch of this funds, there is a quota set: 50% for bumi, 30%, 15 %and 5 % for the CHinese, Indians and other races respectively.

It is ironical that quotas are set for this fund. From the quota set , we can have a glimpse of what 1 Malaysia is really like.

I would have thought it would be right for the PM to do away with quota for this fund, since this is called AS 1 Malaysia.

 Why set a quota for this fund? I do not see the rationale for doing so, except for the fact in  the minds of these leaders who decide on this fund, Malaysia is a country with quotas and so quotas must be set, even if this is the 1 Malaysia fund.

This sort of mindset should have been done away with if the government is serious about 1 Malaysia.

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33 Comments (+add yours?)

  1. AcHoo!
    Jul 31, 2009 @ 15:23:50

    Ideally there shouldn’t be quota but I don’t think we are ready for it yet!
    Assuming all Malaysians can and have the means you would expect the take up to be something like the ratios as per quota anyway!
    So it may be good to have this quota and hopefully all will be taken up!

  2. Ooi
    Jul 31, 2009 @ 15:41:34

    Dr Hsu, do you smell something fishy about this fund? 1)Is the government short of fund as they have ‘mismanaged” even with the petronas money. 2)According to the reports, in the last fund the 50% which was allocated to the Malay were not taken up and have to be offer to the others. This does not sound right at all.
    Therefore I would caution all parties to be careful if you are thinking of purchasing these fund. This could be a trap to siphone the money from the non malay…..

  3. Nick
    Jul 31, 2009 @ 15:55:01

    Dr. Hsu, my bro-in-law works in the fun business, I mean “fund”. The city already anticipated this RM 10 Bn news and the recent run up of the bourse is due mainly to this. So there may be profit taking when the retailers try to get in during this rally. Just be careful. Nothing certain. I have no problems with the quota system. In fact, this is how I think it should be done, not ‘overdone’.

  4. Dr Hsu
    Jul 31, 2009 @ 16:43:13

    dear readers,

    the Economist has a very good article on malaysia and anwar. The link is here:

    http://www.economist.com/world/asia/displayStory.cfm?story_id=14140818

    pls read the comments under that article too.

  5. Justin Choo
    Jul 31, 2009 @ 17:10:16

    Dr Hsu,

    1 for you, 1 for him, 1 for them, and 3 for me.

  6. klm
    Jul 31, 2009 @ 17:15:22

    I have mixed feeling of Anwar.

    Some on stories of what Anwar did when he was DPM and Finace Minister make my blood curdle. Many of there stories have not make it to the public arena. These stories are not rumour but from people who were right in the actions in those days.

    On the other hand, we need him to crush UMNO.

    Is he a saint or is he the devil?

  7. anonymous
    Jul 31, 2009 @ 17:52:27

    Dr. Hsu,

    I don’t see the Economist article as “very good”. A lot of factors being missed out intentionally, I opined.

    “Money being splurged to boost image of Najib administration”. Remember this? This may be the reason for this Economist article. Think about it.

    http://www.themalaysianinsider.com/index.php/malaysia/33550-money-being-splurged-to-boost-image-of-najib-administration

    He needs a lot of money to do this. From this new FUND? It’s better to spend for your own FUN. That’s more realistic.

  8. anonymous
    Jul 31, 2009 @ 18:03:52

    klm,

    “Is he a saint or is he the devil?”

    If he is a devil, I still go for him. The other one more devil, and he can crush him. Devil crush devil. Saint comes in.

  9. DG
    Jul 31, 2009 @ 20:29:09

    This way better. Don’t put all the eggs in one basketleh…

  10. Dr Hsu
    Jul 31, 2009 @ 21:22:39

  11. Justin Choo
    Jul 31, 2009 @ 23:05:06

    Klm,

    “Is he a saint or is he the devil?”
    Anwar was a real devil. After what he had gone through dished out to him by the old devil, I sincerely hope he has learnt his lesson. Even if not, then we still have no other choice at the present moment, but to put this devil in, just to send the existing devils to hell. Then we will deal with this new devil, if he still one.

    “On the other hand, we need him to crush UMNO.”
    YES, INDEED WE NEED HIM DESPERATELY!!!!! Especially our good Doctor here still insists to remain a small candle. SIGH!!

  12. disgusted
    Jul 31, 2009 @ 23:05:26

    Why quota? Tigers why striped?

    No change.

  13. Boo!
    Aug 01, 2009 @ 10:40:42

    Lim Si Pin and Gerakan Youth chicken out trying to deliver “anti-ISA” memo to palace. Actually, it is even not anti-Isa, just review ISA. Bloody shameful.

  14. klm
    Aug 01, 2009 @ 11:36:03

    I was reading about Andrew Sheng. In case you dont know him, he is Chief Adviser to the China Banking Regulatory Commission – one of the most power financial man in Asia, because he help control China’s money. He is Malaysian and he used to work for Bank Negara. Najib had appointed him as member of the National Economic Council.

    The question I have is with such globally recognised talent, could he have rise to the top in Malaysia. What Malaysia misses, HK and China gains.

    See the article below.

    http://www.limkitsiang.com/archive/2001/apr01/lks0924.htm

  15. puzzled
    Aug 01, 2009 @ 12:13:44

    What is 1Malaysia if we still have very very special previledge for a certain race!!!!!

    I arrived at the Klinik Kesihatan Ulu Tiram recently at about 10:00am with a very high fever and was given directly from the machine Q-number 2106 and printed current number as 2043. OK, I was late so I had to wait about 63 patients away. It’s my fault, right? A sign board says KPI max 90 minutes/ patient, so I was relieved so I thought. But I do not see 63 patients waiting! Estimated about less 20 waiting.
    I notice many of a particular elite race coming later than me went to newly register at the registration counter are having smaller Q-numbers, like 2055, 2067, 2075, 2081 ect ect. These numbers are already reserved in the drawer, so what is the purpose of having the Q-machine? It’s to ensure the elite few special particular race gets priority treatment? I do not mind if these are much elderly(older than 70 years) or newly leass than 6 months babies that jump Q. No, they are between 15~40 years old of a particular elite race. By 12:30pm, I noticed only the other races balance were still waiting and so my turn comes at about 12:50pm. Next we went to the phamacy, only the other races was waiting, without any elite race presence. This is 1Malaysia we should not support in the next general election.

  16. Yap
    Aug 01, 2009 @ 12:26:00

    Might as well buy a shoplot and rent it out. Big money and returns.

  17. Dr Hsu
    Aug 01, 2009 @ 16:07:21

    Yap,
    money is so small now, you need a lot of money to buy a shop lot… But on the other hand, use the money to pay for downpayment for a property is a good idea, but only if the property is in a good area. Location, location and location….

  18. Atila
    Aug 02, 2009 @ 01:58:02

    Dr Hsu,
    this is all bluff..to me its taking away rakyat’s money under the impression of 1Malaysia.

  19. Atila
    Aug 02, 2009 @ 02:05:09

    “..Even in the launch of this funds, there is a quota set: 50% for bumi, 30%, 15 %and 5 % for the CHinese, Indians and other races respectively…”

    The govt is unsure where the malay voters are going. Its all BN promotion tools.

  20. Atila
    Aug 02, 2009 @ 02:23:48

    What so great on this AS 1 Fund?

    Why UMNO never tell about amanah saham for the indian muslims in penang? this tribe wants all for themselves, “makan kanan kiri makan atas bawah”.

    They got into amanah saham bumiputra and they created saham for their tribes and malays cannot invest this, yet this indian muslims called themselves malay becoz constitution said so!!

    Now this tribe have their own musabaqah al-quran amongst thenselves, yet they want to be called malay.

    The consitution of making them malays to be revoked or amend…they are bloody disgrace and not Malay skin and features to be called Malays, yet they still think indian muslims why designate them malays in the first place?

    HYPROCRISY race in INDIAN MUSLIMS and many of them in UMNO.

  21. erico47
    Aug 04, 2009 @ 00:52:44

    I think the AS One-Malaysia Fund should set aside certain amount to promote Permaculture (both as entrepreneurial projects as well as lifestyle values), in line with the People (First), Performance (Now), Permaculture (Forever) fully complementing the Triple-Bottom-Line of People-Profit-Planet or CSR (Corporate Social Responsibility)

    This investment approach could prove to be Malaysia’s Legacy to the World, as concisely detailed in the following post: http://bit.ly/2Bhrh6

  22. Health Forums
    Aug 05, 2009 @ 11:07:30

    Is it possible to get private companies to invest in the fund?

  23. Justin Choo
    Aug 05, 2009 @ 21:40:16

    Dr Hsu,
    This morning I went to the Maybank Autocity (Juru, Penang) Branch at 7.30am to be early for the AS1M bonds. I was most happy to be first on the queue.

    Came 9.15, and I was the first to be called. The teller processed my application, and after waiting for about 10 minutes it went through and a passbook was prepared. I was grinning from one end to the other just like Mr Bean!!

    Then came the durian! I mean the most feared thing to happen to on-line trading. The system hanged, and my payment was not effected. There was only 2 counters processing the AS1M, I was No.1 and the other behind me was No. 2. That’s all. Close shop. All the rest can wait till kingdom come.

    Two agony hours passed and still no connection. Lunch time, still blank. So the next logical thing was to tell the embarrassed teller to call me when (if ever) the line was connected and my investment completed. So I went home , expecting a call from them for the worst that my passbook was ready but “sorry all taken up, by the time the line was connected!”.

    By 3.45 the call came and surprised…I got my passbook with the amount credited!! As for the rest from No.3 to who knows how many….went home disappointed and disgusted.

    Maybank Boleh lah!!!!!!!!!

  24. A true Malaysian
    Aug 05, 2009 @ 22:24:29

    I never trust Amanah Saham. NEVER

    During good time, non-Malays are not entitled to invest.

    During bad time, non-Malays are entitled to invest.

    Something is wrong here…..

    When near maturity, another Amanah Saham will be launched. This is the trend,

    I maybe wrong, Justin. Good luck.

  25. A true Malaysian
    Aug 05, 2009 @ 22:28:42

    What if by the time, PR take over. What is going to happen with Amanah Saham?

    PR is likely to take over by then….. my gut feeling.

  26. Justin Choo
    Aug 05, 2009 @ 23:42:19

    ATM,

    As the saying goes “Suckers are born every minute second”.

  27. 1MY
    Aug 06, 2009 @ 09:45:54

    Using your principal to pay your interest is how our financial advisors manage our fund.

    Say you invest RM100.00 @ 10 % per annum, so your principal will be able to service your interest for 10 years. That is how the system operates.

  28. Yuvarajah
    Nov 03, 2009 @ 09:57:01

    Dr Hsu,

    If you think the world should revolve purely on capitalistic thinking, then societies are going to drift further and end in destruction just like whats is happening to the climate.

    The true intention behind the quota is to allow priviledged opportunity to the less or economically deprived a better chance of investing in a lucrative savings scheme.

    Hence, I agree with the noble intention but disagree with the quota system. Everyone knows the chinese are more economically sound than the Indians. Yet they are given 15% more allocation than the chinese. Is this number fair?.

    Have you ever been on the receiving end?. You know very well what happened before the quota system came about. I bear witness, having endured the deprivation of investing in any new share issues under such schemes. You go to the bank to bank with hopes and within 10 minutes of opening they say, “Sudah habis” !. And guess, which Race beats the gun. Since the quota, I can now enjoy a more “fair and level” opportunity. They now have a cap so that the “rich” chinese do not “swallow” everything for themselves.

    In fact, there should be more discretionary effort in ascertaining the criteria of giving priorities accordance with the economic status of each investor. We have the computing capability, hence should micro in gathering information and managing the system to check abuse, e.g those who have already invested millions.

    Common, have a heart for all Poor Malaysians, including those hardworking Chinese who are not as rich as most chinese. They too deserve a place in the NEP policy objective – which is to improve the well being of all races.

  29. Dr Hsu
    Nov 03, 2009 @ 10:09:30

    Yuvarajah
    Thank you for your comment.
    If you have followed this blog, even on an on-and-off basis, you would have noticed that even though I advocate a fair and equal treatment of all races, i always qualified by saying that the poor and the handicapped must be given aids and help.
    i have also mentioned many times while the NEP’s intention of restructuring society and eradication of poverty irrespective of race is good, it has been hijacked and skewed in such a way that harmful ways have set in. The skewed NEP has given rise to a generation totally void of competition, and hence the loss of excellence in almost all fields.

    Go back to read many of my previous articles, almost 1000 now, and you should see my viewpoints. Blind quota just based on race leads to abuses and disunity and discontentment among the different race groups.

    Just like a father (i have 4 kids all doing well btw), you must be fair and treat all your children equally, but for the one who is weak in certain areas, by all means give extra help in those areas only, so that there is no discontnentment and sibling rivalry among the various kids. But just blindly favour one kid, to the extent of ignoring others, it will be the start of siblings becoming jealous of one another , and so on…

    By all means help the poor, but for those already on their feet, please let them compete fairly and equally.

  30. Yuvarajah
    Nov 03, 2009 @ 10:12:05

    Oops, Sorry!

    I meant, “Everyone knows the Chinese are more economically sound than the Indians. Yet they are given 15% more allocation than the Indians.

    Anyway, all is not lost in this capilatic and dod eat dog world.

    Justin Khoo,

    I sympathise with you. My wife use to endure the same experience before the quota was introduce. Now, she got no problem :) because no competition. After 1 month she still got time to earn money to invest !! What a great motivation for the “economically underpriviledged” to work hard.

    BTW, when the Bumiputra and Indians quota are not taken up, the counters are opened for a free for all ! But, you may still end up with the same problem because it is the “Rich” chinese who are causing all that ATM jamming.

    Wish you luck.

  31. Yuvarajah
    Nov 03, 2009 @ 10:30:33

    Dr Hsu,

    To trace 1000 articles is indeed challenging!. Hence, I will take your word for your crusade.

    I too disagree with the “blind quota”. The quota should be designed to address poverty. By poverty I do not mean by hand-outs, rather teaching them how to fish and starting them off with some initial assistance.

    We all have, somehow, been an innocent victim of NEP. Hence, I concur 100% there are many unscrupulous leaders and people out there like wolves under sheep skin who have abused and skewed the NEP policy to their racist agenda.

    I am a true blooded retired soldier who still fights injustice and unfairness, whenever I come across. It is people like you and me who can make Malaysia a better place.

    God bless you and have a nice day.

  32. Dr Hsu
    Nov 03, 2009 @ 10:37:12

    to set up this fund to give higher return to the people is good. But since there is a limit as to the indiviual subsrciption, you cannot depend on this fund to survive.

    To help the poor, what the govenrment can do is to invest this fund into activties which can bring good return, pay part of the returns to investors and use the other part of profits to help uplift the standard of livings to the poor.

    Set up funds to provide traininng, education assistance in term of schoalrships, books, allowances for the poor (not just one race), retraining for those manual workers in technical fields so they can become simple electricians or plumbers, or even driving skills to enable them to become taxi or lorry drivers, licenses for these drivers to own their own vehicles and not through consortium , housing for the really poor , teach them to be farmers, fishermen but give them assistance to start their own farms and buy their own boats etc etc etce, I can go on and on….There are just so many ways to help them.

    The problems that we are facing now is that licenses are givien to syndicate in the name of NEP, so the poor taxi drivers would have to foot a major part of his earning to pay the syndicate to drive, and also pay for all the maitenances aof the texis that the syndicates rent out.

    Same with fishermen. the rich owns the boat and the poor does the work and receives meagre pay. NEw farmign schemes like felda should be developed and open to all poor and not poor from one particular race only. Felda shceme is successful to uplift the livings of some of the very poor , albeit only one ethnic group.

    Just ask the poor to subscribe to this fund and think they can survive on this is wishful thinking, and is like giving fish to the poor, rather than teaching them how to fish…

    I am not against quota system per se, but quota should only be set on social strata and not raced based….. Reserve certain seats for the urban poor (in any undertakings) , certain seats for the rural poor, and certain seats for the not so poor, that should be the way.. And in that way, no one race will be handicapped and no one race will be discriminated and disunity can be slowly done away..

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    Apr 15, 2012 @ 16:43:09

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