As highlighted in 2012 Budgets, households with a monthly income in between RM500 to RM3,000 will be eligible to participate in Skim Amanah Rakyat 1Malaysia (SARA 1Malaysia). The scheme will be opened starting 30th January 2012.
The scheme is a hybrid of a unit trust investment and loan product, capable of generating consistent cash flow or monthly incentives.
Under SARA 1Malaysia scheme, the eligible participant may invest up to RM5,000 into the scheme for the period of five years by using their own money or taking a loan from either Maybank, CIMB, RHB Bank or Bank Simpanan Nasional. The loan repayment period is five years.
The money will be invested in the Amanah Saham 1Malaysia (AS 1Malaysia) fund, and the participants will get attractive incentives on the investments they make.
The monthly incentives will be paid to participants in the form of additional AS 1Malaysia units, and the investors have to ensure that they make monthly loan payments for five years.
The government guarantee that investors would get RM134 monthly. For those who are taking loan, they have to pay monthly repayment of RM84. The remaining RM50 is their profit.
The investor expected to get a very attractive net return at the end of the five-year term. For those who invest by using their own saving will get RM8,000 profit while for those who taking loan will get RM3,000 profit.
SARA 1Malaysia will be managed by a special purpose vehicle (SPV), Malaysian Development Holdings Sdn Bhd, a wholly owned subsidiary of Finance Ministry Incorporated and will be implemented by PNB.
The scheme aimed at encouraging the lower-income group to save and invest.
What do you think about SARA 1Malaysia? From calculation, it generate a whopping 32% return per year!!