KUALA LUMPUR, Jan 12 (Bernama) — 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.
The President and Group Chief Executive of Permodalan Nasional Bhd (PNB), Tan Sri Hamad Kama Piah Che Othman, said the financing offered would amount to RM500 million with the targetted number of participants being 100,000 householders.
SARA 1Malaysia will be implemented by PNB.
The fund will be opened for application starting January 30.
Those with a gross income of between RM500 and RM3,000 a month qualify to apply for the investment and savings scheme.
The scheme was launched here today by Prime Minister Datuk Seri Najib Tun Razak. Also present at the event was Deputy Prime Minister Tan Sri Muhyiddin Yassin and PNB Chairman Tun Ahmad Sarji Abdul Hamid.
At a press conference later, Hamad Kama Piah said 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, said Hamad Kama Piah.
Malaysian Development Holdings will be chaired by Datuk Dr Mohd Irwan Serigar Abdullah, Deputy Secretary General of Treasury (Policy), Ministry of Finance.
Source : Bernama