Opinion piece by, Dr Ahmad Zaharuddin Sani Sabri ,
Former director at the Institute of Tun Dr Mahathir Thoughts
Ever wondered why we’re still waiting a whole year to get our ASB dividends? In a world where money moves at the speed of light, I think it’s time we had an honest conversation about Malaysia’s favorite investment scheme – and why it desperately needs an upgrade.
The Glory Days
I remember growing up hearing stories from my parents and relatives about how ASB was the smartest place to park their money. Back in the 90s and early 2000s, those sweet 8-9% dividend announcements were as reliable as our Malaysian afternoon rain. It was simple: put your money in ASB, sleep soundly, and watch it grow. Those were the days when ASB truly lived up to its promise of helping Bumiputras build wealth.
The scheme was brilliant in its simplicity. PNB would invest in solid Malaysian companies – you know, the big boys like Maybank, Sime Darby, and others – and we’d all share in the profits. It worked like a charm for years. Many families I know managed to save for their kids’ education, buy homes, or build their retirement nest eggs through ASB.
Where Things Started Going Sideways
But here’s the thing – times have changed, and boy, have they changed fast. Looking at the recent dividend announcements, I can’t help but feel a bit nostalgic for those good old days. The returns we’re seeing now would have made our parents raise their eyebrows in disbelief.
I’ve been watching this trend for a while, and let me tell you what I think is happening. First off, the world isn’t as simple as it used to be. Remember when making money was just about buying low and selling high? Now we’ve got cryptocurrencies, fintech, artificial intelligence – it’s like trying to play badminton while everyone else has moved on to e-sports.
The Hard Truth
Let’s be honest with ourselves for a moment. ASB’s current performance isn’t just about global economic conditions or the pandemic (though these certainly didn’t help). I believe we’re looking at a fundamental mismatch between old-school investment strategies and a new-world economy.
From where I sit, it’s like watching a trusted family car trying to keep up on a Formula 1 track. Sure, it’s reliable and has served us well, but maybe it’s time for an upgrade.
What Needs to Change?
- Time to Go Global
Look, I love supporting local businesses as much as the next person, but maybe it’s time ASB spread its wings a bit more. There’s a whole world of investment opportunities out there. Why should we limit ourselves? I’m thinking tech companies in Silicon Valley, renewable energy projects in Europe, or even emerging markets in Africa.
- Embrace the New
I’ve been watching how younger investors are making money these days. They’re into sectors that barely existed when ASB started – fintech, e-commerce, digital services. ASB needs to get with the program. We can’t keep doing things the same way and expect different results.
- Get Tech-Savvy
Every time I use the ASB app or website, I feel like I’m time-traveling back to 2010. In an age where I can trade stocks from my phone while waiting for my nasi lemak, we need better digital tools and platforms.
- Education is Key
Here’s something close to my heart – we need to help our community understand investing better. I’m talking about real financial education, not just telling people to save money. Let’s teach people about different investment options, risk management, and long-term financial planning.
- Revolutionize Dividend Distribution
Here’s a game-changer that nobody’s talking about – why are we still stuck with annual dividend payments? In today’s fast-paced world, waiting a whole year for returns feels outdated. I strongly believe ASB should move to quarterly or semi-annual distributions.
Think about it: our expenses come monthly, our salaries come monthly, so why should our investment returns come just once a year?
Here’s why more frequent distributions make sense:
- Better Cash Flow Management: Regular dividend payments would help people plan their finances better, especially those who rely on ASB income.
- Reduced Year-End Anxiety: No more nervous waiting for that single annual announcement.
- Compound Interest Benefits: More frequent reinvestment opportunities could lead to better long-term returns.
- Market Responsiveness: ASB could adjust distributions based on real-time performance.
- Modern Investment Standards: Most global investment products already offer more frequent distributions.
Looking Ahead
I’m actually optimistic about ASB’s future, despite the challenges. Why? Because I believe in our ability to adapt and change. We’ve done it before – just look at how Malaysia has transformed over the past few decades. There’s no reason ASB can’t do the same.
I envision an ASB that’s both modern and true to its roots – one that invests in tomorrow’s growth sectors, uses cutting-edge technology, offers different investment options, and provides more frequent returns to its unitholders.
While we might not see those consistent 8-9% returns anymore (let’s be realistic), a modernized ASB could still be a powerful tool for wealth creation in our community.
The Bottom Line
ASB isn’t just another investment fund – it’s a crucial part of our economic ecosystem. Its success or failure affects millions of Malaysian families, including probably yours and mine. The recent disappointing returns should be our wake-up call.
The transformation I’m suggesting isn’t just about chasing higher returns – it’s about making ASB relevant for the next generation. From how it invests to how often it pays dividends, every aspect needs to be reviewed and updated.
As someone who’s grown up seeing the impact of ASB in our community, I’m rooting for its successful transformation. The question isn’t whether ASB should change – it’s how quickly it can adapt to ensure it remains a valuable instrument for Bumiputra economic empowerment in the decades to come.
What do you think? Would more frequent dividends and these other changes make ASB more attractive to you? Let’s get this conversation started, because the future of one of Malaysia’s most important financial institutions might just depend on it.
After all, we’re all in this together, and it’s time for ASB to step into the future. The world isn’t waiting – and neither should we.
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