Tuesday, July 14, 2009

The 1-Malaysia Unit Trust For 'the poor'

THE 1Malaysia Unit Trust proposed by Prime Minister Datuk Seri Najib Razak on Saturday should be carefully monitored to benefit more of the medium- and low-income earners.

Groups fear that the richer section of society would quickly snap up the unit trust shares, depriving others who need time to raise funds to purchase them.

They feel the government should reserve a certain number of the shares and allow a grace period for the poorer section of society to secure loans to purchase them.

Earlier this year, Permodalan Nasional Bhd had offered 3.3 billion units of Amanah Saham Malaysia and two billion units of Amanah Saham Wawasan 2020

A cap of 20,000 units per person was placed for 10 days for ASW, and three months for ASM, to enable more people to purchase them.

A racial quota was also instituted for ASM, but any units which remained after three months would be open for sale to others.

Malaysian Malay Business and Industrialists Association president Datuk Moehamad Izat Emir said it would be better if the 1Malaysia Unit Trust was reserved solely for medium- and low-income earners.

"The unit trust should be controlled very strictly to ensure the shares are disseminated to lower-income earners.

"The government should take all necessary steps to encourage this section of society, to come forward and take up the shares."

Malaysian Indian Business Association president P. Sivakumar felt the government should reserve a certain number of shares for the poorer section of the Indian community.

He said: "These people don't have the money to purchase the shares and need to look for funds.

"If a quota of shares is reserved for them, then they will have more time to secure the necessary funds."

Sivakumar said the low-income earners would lose out if they were to compete for the shares on equal terms with the economically stronger section of Malaysian society.

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