Najib’s borrow-to-invest scheme


What’s this? You invest RM5000 in Najib’s new Skim Amanah Saham Rakyat 1Malaysia (Sara) and you can earn RM134 per month for five years?

That works out to RM1608 per year (32 per cent per annum) for a return of RM8000 over the five years (assuming the monthly return is not re-invested).

Alternatively, if the RM134 per month is re-invested in addition to the initial RM5000 investment to give around RM13000 after five years, that would mean an effective compound interest of close to 20 per cent per annum.

No money to invest? No problem; you can borrow to invest. You make monthly payments of RM84 over five years (totalling RM5040) to repay your borrowing but you get back RM134 per month from your “investment”. Wah! So clever… Even EPF can’t beat that.

Only one problem: Where is PNB investing the money for it to earn such high returns to pay the investors?

Then again, the monthly return of RM134 – it is not going to be given out in cash, is it? More likely, it will be provided to participants in the form of additional Amanah Saham 1Malaysia units.

Najib’s borrow-to-invest scheme, managed by Amanah Saham Nasional Berhad, offers a total of RM500m in loans to 100000 households “based on the allocation of Amanah Saham 1Malaysia, i.e. Bumiputera – 50%; Chinese – 30%; Indian – 15%; Others – 5%”.

Is this a new unit trust scheme with guaranteed returns?

Wait a minute… the Sara website says:

Through this Scheme, eligible Malaysians will have the opportunity to apply for a RM5,000 loan from participating financial institution to invest in Amanah Saham 1Malaysia (AS 1Malaysia)I managed by Amanah Saham Nasional Berhad (ASNB)*, and will receive attractive incentive payments on their savings and investments.

*ASNB is a wholly-owned subsidiary of PNB responsible for managing the AS 1Malaysia unit trust fund.

So it is actually a loan scheme to invest in a unit trust fund managed by ASNB.

The Amanah Saham 1Malaysia fund was actually launched on 1 June 2009. It offers 10bn units for subscription at a fixed price of RM1 per unit.

Last September, Bernama quoted the PNB President/chief executive officer as saying that 55 per cent of the units had been subscribed and the quota given to the Chinese community has been fully taken up. But the Bumiputera and Indian quotas had not been fully subscribed.

Are they now offering loans so that the unsubscribed portions can be taken up?

And are the Sara returns guaranteed? The Amanah Saham 1Malaysia fund earns its income from the sale of shares (51 per cent), dividend income from investee companies (37 per cent) and investment in short-term instruments and other income (12 per cent). Last year, AS 1Malaysia yielded 8.6 sen per RM1 unit, but it gave out 6.5 sen per unit.

I notice the Sara website doesn’t say anything about fixed or guaranteed returns on the investment. Instead, the fine print states:

IThe Master Prospectus of the unit trust funds of ASNB dated 30 June 2011, the First Supplementary Master Prospectus dated 17 August 2011, and the Second Supplementary Master Prospectus dated 1 January 2012, have been registered with the Securities Commission Malaysia and are available at any office of ASNB and its agents. Units will be issued upon receipt of the registration form as enclosed in the prospectuses. Before investing, please read and understand the content of the above prospectuses. Total return on the investments may go down as well as up. Past performances of the unit trust funds of ASNB are not guarantees of future performances. Before investing, kindly consider the fees and charges involved. (Emphasis mine)

All said, Najib’s investment scheme raises all kind of questions. Is this a new scheme or an old one that has been repackaged? Guaranteed returns or returns “may go down as well as up”? And more importantly, how will PNB’s investment portfolio perform in the coming years? And will ordinary Malaysians’ investments in Sara be guaranteed by the government?

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Sor Ham

that’s is why they want to teach maths in BM and continue to keep the future generation stupid. if they dont know how to count, how will they know such lofty figures cant be justified. only their own future kids will suffer as this (looks like) a pyramid scheme. more bonds? more suckuk?

tonny wong

It seems that this scheme it to win over those rural and poor folks to support BN. I believer Mr Najib has calculated that his government should be able to pay out those money based on the money generated (via mostly taxes). Come next GE and should they win (again most probably will) the rakyat particular those from the middle income in urban areas would have to bear multiple increase taxes. Not forget that the GST has yet to run and it will after the next GE should PR rakyat fails. It’s hard to believe on how or what type… Read more »

tonny wong

All in know is that, Warren Buffett should learn investment from Najib.


Politics is ugly. Never doubt what small men will do for great power…

Democracy is the state of affairs in which you consent to having your pocket picked, and elect the best man to do it.

Wealth without work, Pleasure without conscience, Knowledge without character, Commerce without morality, Science without humanity, Worship without sacrifice, Politics without principles…

In Bolehland, Jibby & his ilks will promise to build bridges even when there are no rivers…!

If you put the Federal government in charge of the Sahara Desert, in 5 years there’d be shortage of sand…!



andrew 1

you sure is a “she”. hey trolls are paid well and of course you know which side of the divide has the means to pay.

i am a frequent visitor to anil’s blog. well, we all know his inclinations but he is as fair as you get. his consistent stand on sustainability cuts across both divides.

Andrew I

Can’t be sure about anything in cyberspace but if you wish to use a feminine pseudonym, then be prepared to be assumed as female…or someone waiting to become one.

Yes, this problem with trolls. We know one or two here. You can usually tell by their verbosity and their attempts to bitch like Joan Collins on Dynasty. Well, they can try anyway.


And many well meaning and concerned commenters are not paid by Anil. How about you Gerakan K?

Andrew I

Gherkin will be content with a free buffet.


Did any or all of you observe that only Malaysiakini & Anil are highlighting this scam?
Deafening silence from the Opposition bench. Nothing said during the PR Convention, or on tweets.


I am usually very excited when there is money to be made. But this scheme looks very much like the one paddled by a certain now-jailed American Jewish investor. I think the Malaysian public would do well to bear in mind the old saying that “if something sounds too good to be true, it probably is”.

Tc Koh


thought you wont hit below the belt?

anil, pathetic?

he is just asking for clarification. Hey, thats a legit question. guarantee or not? if not, investors can lose their pants. remember Amanah Sabah? ellesse you are not as non-partisan as you claim in your postings in other blogs.

Chill, ellesse

Andrew I

No, she’s constantly at that time of month. Shows in every single comment of hers in cyberspace.


Najib is giving away, not his own though, the nation’s money Malaysia will join Italy sooner than predicted.

semuanya OK kot

Bolehland economics: – Repeated changes in guidelines for industries e.g. number of banks, telcos. – Extending a major communally-oriented strategy that is admitted to have failed spectacularly. – No restriction on the immediate sale of discounted benefits granted for “economic upliftment”. – Loans for investment. – Borrowing through bonds though “we don’t need the money”, e.g. Petronas, EPF. – A mysterious, unexplained economic “stimulus” of billions. – “Zero inflation”. – Hosting industries rejected overseas. – Focus on foreign FDI when (a) local capital and labour is taking flight (b) even GLCs are investing heavily abroad. – Continuing to accept foreigners… Read more »


I analyse from Najib’s speach in the TV: (1) He said invest RM5k,you can get back RM134 monthly for 5 years. That means yearly return of 32%(Wow! that is fantastic but I wonder what sort of investment can give such high return? May be ah long business? (2) If you loaned to invest where the monthly repayment is RM84,then your net return is RM50,which means your yearly return is now 12%(RM50x12=RM600 divided by RM5K).Not bad for an investment with no money down. (3) The bank side(lender),they lend out RM5K,then monthly collects back RM84(so yearly is RM1,008).So 5 years total repayment… Read more »


Pure vote buying, BN style and the tab of which will have to be picked up by the taxpayers just to keep the BN in power.

A far better method is just to get the EPF to pay out a higher dividend rate and that the government can do by allocating goodies like the cow project to EPF instead of to the likes of Shahrizat.

najib manaukau

He should be an investor and do not need the ‘commission’ from the purchase of the submarine
Above all wasting his time as a … Umnoputra or even as the P.M. of Malaysia. Better still as the guru of all the Umno morons so that they don’t have to employ all the omnipotent tactics they used presently using.


hi ,
I smell another MAICA scam here.
This guy Pm is overloading the people with the feel good feeling just to win the ge13.
Samu velu can be the advisor…


Road to expediting the nation bankruptcy ahead of 2019 as widely predicted by some economists (Idris Jala included) ?

Penang Kiam Siap Tham Chiak Kui, majority of them, will be lulled believing they can buy many local delicacies with monthly windfall of RM134 not knowing they may cause their children to pay more hefty taxes later to offset the “u help me, i help u” scheme.

My cantonese colleague told me 134 is not an auspicious figure. can someone elaborate what it means ?


134 = your whole life to ‘die’ (to end or gone or habis) in poverty!
In Canto opera singing it means your life’s saving gone to waste or vanish into thin air!!!
Yat Sang Sheiiiiiiiiii. Tong, Tong, Tong, Cheng!


Khamsiah, i like your description of Penang Chinese, yes, majority are kiam siap, tham chiak kui , ha ha ha !!!


And may I add this: ‘beng sit’ = realistic.
That’s the quality of Penangites for any aspiring politician to face this ‘truth of voters’.


Look at your pathetic mindset. Not a word mention that this is to alleviate rising cost for lower income group. When you’re going to start to be fair and balance?


Ellese, based on your logic, a few people have to work very hard to pay plenty of taxes, so another group can relax and get free money from the rest?
So in the long run we will become another Greece, where they choose to spend the money they don’t have or wanted to work for and wanted France & Germany to bail them out.



This scheme is breaking the fundamental rule of investment, to never borrow to invest. Prudent investment gurus are very skeptical about this kind of high risk move. Alarm bells are ringing in my head because SC is being silent(endorsing) of this. What makes this different from the “get-rich-quick-schemes” out there? Is our government broke? Don’t they have $$$ for GE13? Where in the world are they going to invest to generate returns of more than 32%, considering they have to deduct cost for this exercise and pay the investor 32% per annum??


Similarly KR1M. Something that is not self-sustainable. Who foot the bill? Of course, those who pay income tax.

Maybe Malaysians are just too naive…


Have you seen the Apong Seller doing his aponging?
Open one ‘ready’ oven and empty it and fill another 4 and empty them.
That’s how our gomen empty our Ah Kong’s monies.
Happy tax paying 2012!

Andrew I

Haha tunglang, food is always on your mind but a good analogy, nevertheless.


Hi Anil.

The compounded interest rate is actually 21% per annum for an investment of rm5000 today to collect rm13000 at the end of 5 years.


If the principal and interests can only be withdrawn after 5 years,ie. at the end of the investment period and according to the amount offered, then we have to consider compound interest which is 21%.


Sounds like the best “investment ” in the world !
Fantastic yield indeed.
If it is so , why not offer the 100000 slots directly to our EPF ?
As EPF have all the data of low income earners.


Najib has the solution to save Europe from financial woes!

Najibnomics for the world?


more like maika versi 2012 ?
be careful lah