The new savings scheme “Skim Amanah Rakyat 1Malaysia” or SARA was earlier announced in Malaysia’s 2012 budget late last year. During the announcement not much detail was shared on the detail of the new scheme. Tabling the budget Prime Minister Datuk Seri Najib Razak shared that the new savings scheme will benefit more than 100 thousand households which were earning below RM 3,000 per month.

Recently this week the full details of the fund was launched.  Here are some facts of the savings scheme:

SARA Features

• The scheme will be opened starting 30th January 2012.
• The scheme, under the Ministry of Finance, is managed by Permodalan Nasional Berhad’s sister company, Amanah Saham Nasional Berhad.
• Application forms are available at Malayan Banking Berhad, CIMB Bank, RHB Bank and Bank Simpanan Nasional.
• Scheme allocation similar to Amanah Saham 1Malaysia (AS 1Malaysia), i.e. Bumiputera – 50%; Chinese – 30%; Indian – 15%; Others – 5%.
• The government has set aside RM100 million to kick-start the scheme
• The scheme is a hybrid of a unit trust investment and loan product, capable of generating consistent cash flow or monthly incentives. [Read more...]