ASB has the investment capped at 200k

to most of them, perhaps.

but please refrain from being racist, this is not the thread / forum to be one.

nobody is stopping anyone from converting to islam just for the sole purpose of being eligibile to invest in ASB.

well, there is always 2-side of a story

some have the bullets but no target, some have targets but no bullets, some even ignore the target, and those who got the bullets and targets didn't shoot at all



This post has been edited by lucifah: Sep 25 2013, 10:43 PM

some people believe all sort of funny things if religion is included

case example: golden churn butter. the best and most delicious butter in the world. malaysia say haram. i say fark it. i still eated it. it's a mafakin butter. for god's sake


but anyhow, the letter doesn't come from Fatwa Council. And most insiders will know where ASB incomes are generated from...

u got it wrong

BNM recommends the termination of ASB financing as it is "damaging" to the ASB system itself

come to think of it, ASB dividend pays 8%

u have ASB financing at 6.6%

you only earn 1.4%

the bulk of the dividend (6.6%), which was meant to empower bumiputra, is instead channelled to banks / financial institution

this itself negates the purpose of ASB's existence

This post has been edited by lucifah: Sep 27 2013, 07:42 PM

can be stretched up to 30 years if eligible

http://www.maybank2u.com.my/WebBank/ASBConvRpymnt_110511.pdf

CIMB can give you up to 30 yrs

http://www.cimbbank.com.my/index.php?ch=cb...4&tpt=cimb_bank

RHB and Maybank will also give up to 30 yrs, but you have to rquest

it's crazy. paying personal loan for 30 yrs.

forced saving is a nice way to name it

but it comes with lots of caveats - you miss a few months payments, the interest / penalty will be accumulated for the rest of the loan tenure

sometimes, delinquent end users will have their BLR-1.65% reverted to 0%, and in some extreme cases, BLR + 1.0%

and the ASB loan will somehow affect / reduce your loan amount eligibility for you to finance properties


just be careful with the ASB loans. it's a good thing when everything is good. but when you suddenly need money and can't pay for the loan once or twice, the effects will ripple for the whole 25 years.

AFAIK, Maybank is still promoting ASB loan aggressively

AS1M still has almost unlimited bumiputra allocations

and gives return comparable to ASW2020 and ASM.

this thread has become a "have u topped up your ASx acc today?" rather than discussions and debates...

the ASNB counter at my local MBB branch is almost empty except some ASB withdrawals here and there. i only see one chinese couple updating their AS1M passbooks.

edit: my manual AS1M dividend calculations yielded > RM 200 difference, or about 3% difference. gonna re-check my calculations and see what went wrong.

This post has been edited by lucifah: Oct 2 2013, 12:17 PM

BNM is enforcing a 10-yr tenure limit on personal loan

ASB financing falls under personal loan

at worst, new ASB financing loans will not be offered

at best, new ASB finaning loans will be offered with the tenure capped to 10 yrs as opposed to 25 - 30 yrs presently

your limit will be 200k. not 220k.

ASB has two type of deposits - passbook or certificate. right now you have certificates, which are held by the bank for guarantee against the loan amount

any dividends and bonus earned will be credited into your passbook



if you are eligible for 200k and want to maximise the dividend, take out the 20k, park it inside AS1M. it can earn you 6.7%, which can offset the interest slightly

yes, they are. it will be printed out together with your annual ASB statement.

that is what we would call as filial piety.

1. yes. but you have to deposit into the loan account manually as the automatic standing instructions will not deduct more than the monthly installments

2. since you can invest in ASB, use the additional money to get more money. any investments that generate returns higher than the interest charged by the ASB loan. one example is to invest in AS1M (bumi quota still available) and gives return of 6.7%

if you qualify for ASB, you will qualify for bumiputra quota for AS1M, ASW2020 (finished) & ASM funds

one of my client is a convert and is able to invest in ASM and ASW2020 for bumi quota

this one i'm not too sure, but i think the bank will maintain the monthly installments unless you request for adjustments

but i'll give you a scenario:


let's start with a 200k loan (actually loan amount dosn't matter in thsi example), and you have 50k cash

let's assume your financing rate is BLR - 1.6%

and BLR = 6.6%

thus, the effective interest rate = 5.0%


1. REDUCE PRINCIPAL

Current Principal: 200k
Reduce: 50k
New Principal: RM 150k

Interest charged for 1 month based on previous principal balance: 5.0% / 12 * 200,000 = RM833
Interest charged for 1 month based on new principal balance: 5.0% / 12 * 150,000 = RM625

Interest saved: RM 208


2. OPEN UP ANOTHER INVESTMENT

AS1M: dividend = 6.7% (2013)

Dividend earned over 1 month period on a 50k deposit: 6.7* / 12 * 50,000 = RM 279


you earn RM279 in one month if you invest in AS1M, while you only save RM 208 in the same month if you reduce the principal

multiply the RM 71 x tenure period = ??

of course this is tricky, and you haven't even included the compounding dividend effect will increase your earning, while reducing principal will decrease your savings


again, this is just a rough calculations. many variable are ommitted in the calculations. this is just a simplified calculations to see which is more beneficial in terms of ringgit and cents