ASB Financing Game Plan: Smart Investment Strategy for Young Malaysians
•By Mahersaham Team
Artikel ini juga tersedia dalam Bahasa Melayu
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ASB Financing can actually be a ''game plan'' for financial management, especially for young people.
Why do I emphasise young people?
Because if you don''t start from a young age now, you wouldn''t want to wait until you''re 30 or 40 years old before taking action.
ASB Financing is an ASB investment using Islamic financing. It is different from conventional loans.
Banks that offer this include Hong Leong Islamic Bank and CIMB Islamic Bank Berhad.
When you take up financing with the bank, the bank will purchase ASB certificates from ASNB.
The certificates will then be held by the bank as collateral for the financing taken.
If you terminate, the bank will sell back the certificates and return the principal to you.
Many people already know about this, but there are also many who are just finding out.
So what are the things you should know about ASBF?
If you truly understand ASBF, there are actually many game plans that are usually guided by agents according to their clients'' suitability.
Some people use ASBF for savings. However, there are also those who use ASBF for investing.
That is entirely up to you.
What matters is that you yourself know why you chose ASBF as your investment vehicle.
Apply for ASBF RM50K one year before your PTPTN repayment period begins.
Your monthly instalment would be RM250. After one year, you receive a dividend of RM3,500 [0.07 x 50K].
After a year has passed, how do you pay PTPTN?
Use the dividend to pay a lump sum for one year to PTPTN.
For example, use RM3,000 (total annual instalment = RM250 x 12) towards PTPTN.
Then, continue paying RM250 monthly for ASBF.
Repeat this step until the PTPTN debt is fully settled.
Approximately by year 10, you should be able to settle the PTPTN debt.
After that, terminate the ASBF. Upon termination, you will receive Dividend + Principal + Surrender Value.
Isn''t that great? Debt fully paid off, and you still get dividends and returns.
This second game plan was shared by Tuan Amir Syahir.
Apply ASBF RM 100K with monthly instalment of RM505. See this calculation example:
Download the ''Financial Calculator'' app on Play Store
After one year, assuming ASB declares a 7% dividend, the dividend earned would be RM7,000.
Then roll over this dividend to cover the year-2 instalments of RM6,060 [RM505 x 12], with a remaining balance of RM904 [RM7,000 - (RM505 x 12)].
In year 2, upgrade by applying for another ASBF certificate of RM100K, bringing your total ASBF to RM200K.
Your monthly instalment will remain the same at RM505 for the second certificate. Meanwhile, the first certificate is already covered by the rolled-over dividend.
Then in year 3, terminate both ASBF certificates. The total accumulated:
= RM 18,238
In just 3 years, you can accumulate RM18K. Who else is going to give you that?
You only paid a total commitment of RM12,120 [RM505 x 12 x 2].
But your ROI is 50.48% [(RM18,238 - RM12,120) / (RM12,120)] over 3 years.
In summary:
With that RM18K, it is enough for a deposit on a first home costing RM170K.
But if your dream home costs RM400K, then you need to put in more effort by increasing your ASBF monthly instalments.
No pain, no gain.
If you are willing to struggle today, it is not impossible that you will reap the rewards in the future.
At the end of the day, it all depends on your own capability.
In conclusion, this game plan is merely a sharing for your financial planning.
If you feel this approach is not suitable, you can save and invest elsewhere such as Tabung Haji, property, or the stock market.
Don''t have an ASB account yet? You can open an ASB Online account.
An ASBF game plan is a strategy of using ASB financing as a forced savings tool to achieve specific financial goals — for example, saving for a house deposit. You pay a fixed monthly instalment, and after a few years, terminate the ASBF to receive dividends + principal + surrender value.
It depends on your financial goals. Many people terminate after 2-5 years to get sufficient returns for a house deposit or business capital. The longer you save, the greater the compound effect on accumulated dividends — but it ultimately depends on your needs.
Yes, this is one of the most popular game plans. For example, with monthly instalments of RM505 over 2 years (RM12,120), you can receive returns of approximately RM18,000+ including dividends. This amount is sufficient for a 10% deposit on a property priced at RM170,000-180,000.
ASBF provides leverage — you can invest a larger amount than your actual savings and enjoy dividends on the full amount. It also functions as forced savings because the monthly instalments must be paid every month, training consistent financial discipline.
ASBF is a smart savings strategy for young people, but don''t stop there — diversify your investments into stocks for higher potential returns and a stronger financial portfolio.
Open a CDS account to start investing in stocks on Bursa Malaysia as your next step after ASBF.
Download the free stock basics ebook to learn the fundamentals of stock investing from scratch.
Further reading: