Maybe what he is trying to say is govt. no money to pay interest on these, and since election is over no need to create feel good enviroment, so lower dividend, No??

that's what is being pointed out here.

the ASB dividends are not paid by the govt.

instead, the govt makes it easier for ASB to derive the dividends from their investment, which again, i have no liberty to discuss here. maybe over a nice cup of coffee. but not online.

Goodness, what ever gave you that impression that PNB's dividends are provided by the government? Or if PNB is like Petronas and has to provide direct funds to the government for its operational use that eats into dividends that's supposed to be given to the investors? PNB is not like other GLIC's like Khazanah or Ekuinas which uses the government money and invests which then returns profits back to the government. PNB is a GLIC that pool's money from investors and providing profits it obtains back to the investors in dividend.

PNB's funds are not guaranteed by the government or is it insured by institutions like PIDM, the same goes with other unit trust products in Malaysia. I would understand if you say it is quite a challenge to continue providing good dividends due to the sheer size of ASB itself or because PNB is only allowed to invest in local equities that yields are at a pinch but equating/assuming as you did it just boggles me. Even for PNB's funds that invest in government bonds or MGS, the returns on these structured products are fixed for as long as the government can honor payments at maturity. We may be in debt but it's nowhere near what the US govt is facing having to default entirely.

I'm sorry for the retort but it get's tiring having to repeat the same stuff over and over and over and over and over again..... 

The point im trying to make is that the dividends this year will NOT be as good as last year regardless where the profits come from and if its only paper dividends.

history has shown that ASB dividend is always in tandem with BLR rate. but let's not use past performance to predict the future 

True that. When measuring the spread between dividends (ex-bonus) and BLR, the average since 1990 till 2012 is 0.8%. It even went negative during the early 90's and of course during 1998 of course.

Again I've excluded bonus in the equation as it's not an absolute figure but taken over 120 months or 10 years. Food for thought for those thinking of taking ASB loans, don't fall for the "selling" tactic used by banks who always quote bonus as though it is absolute when it isn't.

i agree many people got duped by ASB return = dividend + bonus = 7.75 + 1.15 = 8.9%

that is why most of my example calculations here exclude the bonus calculations.

and since i fvcked up my ASB records (depleting almost zero balance during my dark years), my bonus is affected. in fact, my effective bonus for 2012 is actually just a mere 0.2% of my current ASB balance, which is pathetic.

For everyone's benefit (especially those silent readers who may be contemplating ASB loan due to the rumor that ASB loan tenure would be capped at 10 years) here's the image of the ASB dividend vs BLR spread. Again, don't fall for the bank's sweet talk.

The margin is smaller than you think

For everyone's benefit (especially those silent readers who may be contemplating ASB loan due to the rumor that ASB loan tenure would be capped at 10 years) here's the image of the ASB dividend vs BLR spread. Again, don't fall for the bank's sweet talk.

The margin is smaller than you think

sometimes i was wondering this loan thingy actually memperkasakan bank instead of memperkasakan bumiputera..

For everyone's benefit (especially those silent readers who may be contemplating ASB loan due to the rumor that ASB loan tenure would be capped at 10 years) here's the image of the ASB dividend vs BLR spread. Again, don't fall for the bank's sweet talk.

The margin is smaller than you think

but still, a +1.15% over the BLR (based on 2012 returns), is still acceptable...

and if you include the BLR -1.65% offered, then it will be 1.15% + 1.65% = 2.8% above the interest charged?

correct me if i'm wrong

Some of the year the total dividend is 14% 

Very2 lucky those holding big amount those time 

Some of the year the total dividend is 14% 

Very2 lucky those holding big amount those time 

You're correct but I never bothered with the BLR-x.xx% portion of the equation because not everybody is guaranteed to get that rate. It would depend on the applicant's existing commitments, exposure and credit history/profile.

It's the same logic I apply in terms of ASB bonuses too. Not everyone gets the absolute value and the same applies to the discount rate one may get from the base lending rate

during that time, BLR is 11%...

and no, u got it wrong. it's NOT the dividend, but the BONUS that is high (3%)

like mentioned previously, BONUS = fake percentage

Hahahaha... I knew it Before someone starts screaming "where's the 1Malaysia spirit" bla bla bla crap, it's good to note that the savings rate has gone considerably down since those double-digit dividend hey-days. In an environment of high savings rate and high coupon rates, it's very easy to give high dividends when even FD would give you very good returns

Noted PNB consistently paying Bonus to ASB holders since year 1990
Is there any obligation for PNB to do so?