Special scheme to encourage savings

By Friday January 13th, 2012 No Comments

KUALA LUMPUR: A special scheme targeting households with monthly incomes below RM3,000 has been launched.

The Skim Amanah Rakyat 1Malaysia (Sara 1Malaysia) is aimed at increasing disposable income and encouraging savings among the lower income group.

Datuk Seri Najib Tun Razak said Sara 1Malaysia would be a continuation of the various forms of aid and assistance implemented by the Government to benefit the group.

“The Government has implemented many efforts and initiatives for the people over the past three years,” he said when launching Sara 1Malaysia at PWTC here yesterday.

Also present were Deputy Prime Minister Tan Sri Muhyiddin Yassin, Permodalan Nasional Bhd chairman Tun Ahmad Sarji Abdul Hamid and president and group chief executive Tan Sri Hamad Kama Piah Che Othman.

The Prime Minister had, when tabling Budget 2012, announced that such a scheme would be made available to benefit 100,000 households.

Under the scheme, those eligible can invest RM5,000, which could also be obtained through loans from selected financial institutions.

In return, participants would enjoy monthly returns of RM134, or RM50 if a loan was obtained.

A participant’s total investment would be worth between RM5,000 and RM13,000 after five years.

Applications for the scheme can be made from Jan 30.

The Prime Minister said mega development projects were not meant to benefit the corporate sector and the people of Klang Valley only.

He explained that such projects would help ensure economic growth of 5% to 6% yearly, resulting in steady revenue for the country.

“With this revenue, we can allocate a bigger budget to be distributed to sectors such as health and rural development,” he stressed.

Source : The Star

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