KUCHING: Amanah Saham Bumiputera (ASB) holders are urged to adopt strategic measures to optimise their investments and secure long-term financial growth.
Malaysian Financial Planning Council (MFPC) President Andy Ng Yen Heng highlighted the importance of reinvesting dividends to harness the power of compounding.
“ASB’s relatively stable returns make it an ideal vehicle for long-term growth. Automating reinvestments can help investors avoid spending dividends and instead maximise compounding potential.
“However, ASB holders are advised to ensure that their returns outweigh the loan interest rate. Current returns make ASB financing attractive, but it requires careful cash flow planning.
“Do avoid over-leveraging and assess whether you can sustain loan repayments in the long term,” he shared with Sarawak Tribune.
Ng stressed that diversification is another key element of successful financial planning.
He said that although ASB is known for its stability, holders should not put “all their eggs in one basket”.
“While ASB is highly stable, consider other investment types that may offer competitive returns and cater to different risk tolerances.
“Allocate a percentage of funds to moderate- and high-risk investments for growth potential,” he said.
Following this, he urged ASB holders to integrate their investments into broader financial plans, such as building retirement funds or saving for children’s education.
“For instance, you can build a retirement fund using compounded ASB dividends or create a child education fund through disciplined contributions.
“In addition, holders should ensure contributions align with tax relief options (if applicable).
“For example, you can create a child education fund with Simpan SSPN, as announced in Budget 2025, where the tax relief was extended for three more years,” he said.
Ng recommended that ASB holders engage licensed financial planners to receive tailored and holistic financial advice.
“Financial planners can provide comprehensive advice that covers not only investments but also other aspects of personal financial planning such as insurance/takaful, retirement, risk management, zakat/tax planning, and legacy planning.
“Their competencies and obligations are broader than those of agents. A financial planner’s proactive advice, monitoring, and reviewing of financial plans ensures that your protection plans are covered while keeping you aligned with your overall financial goals,” he said.
Ng reiterated the importance of disciplined financial planning for ASB holders.
“The ASB dividend and bonus announcement is a reminder of its value as a stable, income-generating investment.
“By adopting disciplined financial planning, ASB holders can secure long-term financial growth while mitigating risks associated with over-concentration in a single investment product,” he said.
For the record, Amanah Saham Nasional Bhd (ASNB) recently declared an income distribution of 5.75 sen per unit for ASB, amounting to RM10.1 billion for the financial year ending Dec 31, 2024 (FY24).
The distribution consists of 5.5 sen per unit as income and a bonus of 0.25 sen per unit.
This payout marks ASNB’s highest since FY18, when it announced a dividend of 6.5 sen and a bonus of 0.5 sen per unit.
The 5.75 sen distribution in FY24 exceeds the 5.25 sen per unit paid in FY23, which included 4.25 sen in income and 1 sen in bonus, amounting to RM9.3 billion.
