say you are a bumi and work with the goverment, and let's say he got 200k in ASB investment account. My friend who work as a government servant told me the goverment loan interest is very low like 2.5 max 3%, so if he borrow 200k to buy a house, he just need to take money from the interest earn @ 8-9% in ASB to repay the loan...literally they are not paying any money to buy the house, still got extra money.

Any source regarding this matter? As I know government servant with salary as low as RM 1,500 can apply and GET up to RM 100k loan. I wonder how long they take to repay back the loan. The lowest isnt it 5% from aggro bank?

If i not mistaken. the lowest interest should be 4%-5% for any government loan. won't be 2.5%

i think it's housing loan. only for house.

I wonder where you learn mathematics.

The example u raised, basically meant that the person's investment yield higher return compared to his housing loan's interest rate.

READ, "INTEREST", what about the loan amount itself? No need to pay? Repay interest enough d?

*Btw, the interest rate for Govt Servant housing loan is 4%.

ofcourse need to pay the initial loan. but how much? will it be more than the interest earned from asb, if you calculate how much need to pay a year vs amount interest earn in a year.

That would depend on how long is the repayment period.

Btw, the ASB return not that high (8-9%). Average return is 7%+.

Anyhow, becos of the 'jacked up' return of ASB, ASN, ASW (the funds didn't really make that much profit actually). U get a lot of ppl (bumi especially), who put all their savings into the mentioned funds, then take loan (car, house, personal) to the max. Thinking that since the return from the Govt related funds are higher compared to loan interest rates, they are actually 'making money'.

Well, I'm not commenting whether this is right or wrong. But putting all the eggs into 1 basket is never a safe bet. Moreover on some funds with unbelievable statistics.

Govt Servant loan
Basic Salary Max Loan(RM)
1. 3500 & above 360,000
2. 3000 - 3499 300,000
3. 2500 - 2999 264,000
4. 2000 - 2499 240,000
5. 1500 - 1999 192,000
6. 1200 - 1499 156,000
7. 1000 - 1199 120,000
8. 800 - 999 96,000
9. 600 - 799 72,000
10. 599 & below 48,000

The interest rate is 4%. Dont know whether the ASN/ASB can cover the interest as the interest for house loan is different from ASN/ASB deposit (but I think ok lah with 8-9%)

agree that gov loan got low interest rate...very worth and if you're working for gov...this is the only super benefit i can see which is really worth it...
don't think...just buy!

not all government servants like to take government loan.. because the risk of late disbursement is very high.. end up the owner have to pay for the penalty.

well i would say that 4% isnt that fantastic considering that now loans are going at BLR - 2.X .... It used to be good in the days when the BLR were super high ...

yeah, not much of difference between govt loan and bank loan nowaday.

their interest is very low..i don;'t know how much.
but wat i know is they can use the low interest benefit once in a life only.

My wife is a gov servant. 4% interest. Still worth it, considering BLR is rumoured to increased

4% lah, the interest never change like BLR
Not once a life, but can get govt loan twice, with condition that the first loan must be fully settled/paid before the second loan is approved

Why do we let a racist mofo like u participate in this forum. Why do u have to specifically target Bumis who work with goverment? Is there not any non-Bumi who could earn interest more than u mentioned above working with gov too?

If you work in government and starting salary is less than 2,000 what chances do u have to save up to 200k. I am working in an MNC earning close to RM10k and still haven't reach 100k savings level. I doubt any civil servants below age of 30 will have that kind of money.

Stop being a racist mofo will u.

the loan is applicable to all government servant, no matter u are a bumi or not. race is not an issue here.

the interest rate for government loan is 4% but the max loan repayment is up to 25 years only, even if u are still at age of 20.

personally i don't think she is hinting any sort of racism here, she's merely using bumiputras as example to point out and link the interest rates between the gov loan and ASB investment profit in percentage.

i sure hope you're not offended that easily, not everytime a person utters the words bumi, malay, indian or chinese are racists.

tying to be diplomatic here.

lol, I specifically mentioning bumi working in government because 1) only bumi can invest in ASB and 2)government servant can enjoy low interest goverment loan. why do i mention ASB, because it's one of the most stable, risk free investment.

which in my ROUGH calculation, (If it's right) IF they have 200k in ASB which historically showing interest earning of 9-10% pa, countering their loan of 200k with 4% interest pa to buy a house, it will work out they LITERALLY don't need to fork out money to pay for the loan aka the house.

your earning 10k per month, can't even save 100k savings level, judging from the way you talk and seeing things, it doesn't surprise me. say you are earning 10k, thats 120k a year, take away 100k for savings, you left with 20k to spend a year which work out 1.6k to spend every month, which is more than enough to survive, and you cant do it, what kind of a spoilt brat you are. there are lots of way to get that 200k, it's not that much of amount in today's value, it can be sponsorship from parents or join fund with husband/wife/family members.

who's the mofo again?

Dont forget they can get another 5-7% discount on houses

yeah, even ppl with meagre Rm2K can save Rm1K/monthx12=Rm12K x 10 =Rm120K/ in 10 years.

what say about you? Rm10K still cant even save Rm100K?? let say u have a Car Loan + Housing Loan + whatever thing you support,
Car Loan Max =Rm1.5K
House =Rm1.5K
Expenditure = Rm2K
Total =Rm5K

This point, actually you can save Rm100K in 2 years bro!

Hello, he/she could be financing a RM700k property + a RM200k vehicle, who knows?
Plus maybe family to support.

Finances is never 1+1=2.

wow...a smart move, normally ASB bumiputra pay slightly higher
but when come to economy recession, u will get nothing or maybe lost some in it

actually, ASB is a capital guaranteed investment, you won't lose your money and 2ndly, if you look back the dividend return of ASB in 97-98 recession, some how it's quite high! Although I have no idea how and where they invest the fund, or may be they got bailout or something i oso dunno la

I stated in my earlier post.

The financial reports of ASB, ASN, ASW was "furnished". Dividend payout "jacked up".

Go read the audited report, and you'll find the investment combination is similar to the local funds. But the local funds didn't make as much profit.

It's politically motivated.

So basically it is a fund setup by the Govt using taxpayers money to subsidize and feed those lazy fella.

Ur definition is quite accurate.

For the same political and racial reason, the PNB fund like ASN, ASB will have annual interest which is higher than ASW (opened for all malaysian) and you have to queue up early in the morning 3.00am to purchase it (unfortunately it only open for purchase few times in a year).

Actually, the ASB is meant for the poor bumis. Those who can't afford to invest in other funds.
Can u buy only a single unit (RM1) of stock in any other funds? I doubt it.
Why poor bumis? I don't know.
But with regards with the bumis, in terms of absolute numbers AND on a proportionate basis, comparatively, there are still more poor bumis than none bumis.
However, the weakness here is the possible abuse of the funds where the rich bumis are also allowed to invest in this fund.
Yes, the rate of returns is usually higher than other funds, and the capital fixed. The aim is to assist them. Would we want those poor people to remain poor? No, I'm sure we're not that selfish.



This post has been edited by azfamy: Aug 12 2008, 02:04 PM

yes i agree with you the distribution of wealth should be fair, and there is a lot of rich malay are taking advantage on the Govt policies (no need for me to elaborate more)

However i believe that poor people is not limited to Malay only, there are thousands of chinese, indian, kadazan, iban, bidayuh, orang asli etc who are poor. I think they deserve a chance to invest in ASN (Am i dreaming?)

this is the whole new economic policy and new economic agenda argument again isn't it.

is the nep working? will the nea be better?

unfortunately there is no 1 answer that will be acceptable to all malaysians.

by the way, dr m's recently blogged on the nep. interesting to note his views.

kadazans, ibans, bidayuhs, orang asli are all considered as bumi la

IINM chinese and indian too can invest, provided if you are muslim.

h'ver if ur are working with the bank u will realise that many of
the bumi's still hv to take up a loan in order to invest in ASB...and
there is a limit thou ...RM200K...

because Government protect it
i can consider it low-risk investment, slightly higher than FD

fark Dr M. he is the reason we are in the shit we are in.. can people stop quoting him or referring to him..

sanook, whatever said and done, he was the leader of this country, and his blog is interesting to get a view of what he is thinking, or how he is trying to cover up/justify his past misdeeds.

just because i read his blog doesn't mean i am a fan of his or i agree with what he is saying. in fact i totally disagree with most of what he says, especially when it comes to justifying his past actions.

however, i feel that it is good that in order to get a broader understanding of the issues at hand, that we read both sides of the story, instead of cursing and swearing, do you not agree? or are you afraid that if you read it you will be influenced by him, and will start following him blindly?

I read his blog and see a senile old man deliberately avoiding issues that matter and focus on nitpicking microissues that offends him more than anyone else. everything that he farking accuese other people he was guilty of the same thing at one time or the other and yet he still exude this holier than thou attitude and keep on harping on the fact that people misunderstood him and keep on claiming that he has done his best and he has no regret..

better dont read his blog

I quote a statement made by a 3rd party on USJ.com.

"Dr M personifies greed to the highest degree"