Introduction To Unit Trust in Malaysia

1
Table Of Contents
1.
Introduction to Unit Trust in Malaysia.

1.1 Definition.
1.2 Unit Trust in Malaysia.
1.3 The Development of Unit Trusts.
2.
PUNB.
2.1 PUNB Background.
2.2 Corporate Culture.
3.
Facilities Provided by PUNB.

3.1 Business Premises.
3.2 Financial.
4.
Services.
4.1 Corporate Advisory.
4.2 Business Services.
4.3 Training.
4.4 Business Development.
5.
Other Programmes Offered.

5.1 Siswazah Perantis Programme.
6.
Appendixes.
6.1 Brochures.
1.
Introduction To Unit Trust in Malaysia.
1.1 Definition
Unit trust fund is an investment scheme structured to allow investors with similar
investment objectives to participate in the money, debt, equity and derivative markets.
Professional investment managers who channel their efforts towards achieving
investment objectives ranging from regular income to capital growth, will manage funds
collected from the scheme.Unit trusts are excellent vehicles for individual and corporate
financial planning due to their affordability, liquidity and relatively low risk nature.
1.2 Unit Trust in Malaysia
Malaysia introduced the unit trust concept relatively early compared to its Asian
neighbours, when, in 1959, a unit trust was first established by a company called Malayan
Unit Trust Ltd.
The unit trust industry in Malaysia has therefore a history of more than four decades. The
development of this industry can be presented in chronological order as follows
1.3 The Development of Unit Trusts
The Formative Years: 1959 -1979
The first two decades in the history of the unit trust industry were characterized by slow
growth in the sales of units and a lack of public interest in the new investment product.
Only five unit trust management companies were established, with a total of 18 funds
introduced over that period. The industry was regulated by several parties including the
Registrar of Companies, The Public Trustee of Malaysia, Bank Negara Malaysia and the
Ministry of Domestic Trade and Consumer Affairs.
The 1970s also witnessed the emergence of state government sponsored unit trusts, in
response to the Federal Government's call to mobilize domestic household savings.
The Period from 1980 to 1990
This period marks the entry of government participation in the Unit Trust Industry and
the formation of a Committee to regulate the unit trust industry, called the Informal
Committee for Unit Trust Funds, comprising representatives from the Registrar of
Companies (ROC), the Public Trustee of Malaysia, Bank Negara Malaysia (BNM) and
the Capital Issues Committee (CIC).
The 1980s marked a significant development in the history of the industry when the Skim
Amanah Saham Nasional (ASN) was launched by Permodalan Nasional Berhad (PNB) in
1981. Despite only 11 funds being launched during this period, the total units subscribed
by the public swelled to an unprecedented level because of the overwhelming response to
ASN.
The 1980s also witnessed the emergence of more unit trust management companies,
which were subsidiaries of financial institutions. Their participation facilitated the
marketing and distribution of unit trusts through bank's branch network which widened
investor reach.
The Period from 1991 to 1999
This period witnessed the fastest growth of the unit trust industry in terms of the number
of new management companies established, and funds under management. The
centralization of industry regulation, with the establishment of the Securities Commission
on 1 March 1993, coupled with the implementation of the Securities Commission (Unit
Trust Scheme) Regulations in 1996 and extensive marketing strategies adopted by the
ASN and ASB (Amanah Saham Bumiputera), played key roles in making unit trusts
household products in Malaysia. Consequently, the total asset value of funds under
management grew more than threefold from RM15.72 billion at the end of 1992 to
RM59.95 billion at the end of 1996. The period also saw greater product innovation and
deregulation of the industry.
Although the pace of growth of local unit trust funds has moderated since the financial
crisis of 1997-1998, it has nevertheless maintained its upward trend.
The Period from 2000 to current
The unit trust industry has a very promising start to the 21st century. The industry
recorded double digit growth for first 7 years, growing from RM43 billion in Net Asset
Value(NAV) in Year 2000 to RM169 billion as at 31 December 2007. However, this
strong growth has been punctuated by some extraordinary financial crisis in 2008,
starting from the fallout of the sub prime loans in the USA, bursting of the property
bubble, the global credit crunch, the banking crisis and the rapidly falling share prices
worldwide. As at 31 December 2008, the unit trust industry saw its NAV dropping to
RM134 billion. While the industry NAV has dropped by 20% over the last 10 months, the
industry Net Asset Value to Bursa Malaysia Market Capitalization has increased from
15% to more than 20%. In relative terms, the unit trust industry drop is less severe than
the fall in share prices in Bursa Malaysia due to the diverse nature of its assets.
2.
PUNB (Perbadanan Usahawan Nasional Berhad).
2.1 PUNB Background.

Perbadanan Usahawan Nasional Berhad (PUNB) is Malaysias national entrepreneur
development corporation. It was established on 17th July 1991 under the Malaysian
Companies Act 1965 which is a wholly owned subsidiary to Yayasan Pelaburan
Bumiputra with an authorized capital of RM500 million and a paid-up capital of up to
RM400 million.
PUNB's business operations are focused on providing integrated entrepreneur
development packages to assist Bumiputera entrepreneurs in Retail and Small and
Medium sized Enterprise (SME) sectors. These development packages are designed to
help Bumiputera entrepreneurs develop business acumen, maintain a profitable venture,
and shape their enterprise; par excellence. It emphasizes on developing Bumiputera
entrepreneurs in strategic and high potential businesses. This is in line with the National
Development Policy (NDP) to build a dynamic, resilient and progressive Bumiputera
Commercial and Industrial Community (BCIC) besides developing truly professionals,
highly ethical and genuine Bumiputera entrepreneurs; whose involvement and
contribution is pivotal to the country's economic growth.
PUNB is fully committed to helping Bumiputera succeed as entrepreneurs by enabling
them to gain the requisites of business and the ability to be competitive, resilient, diligent
and having the ability to grow. It is in this same spirit that PUNB wants to encourage its
Management and staff to be in tandem with these aspirations; to be positive, progressive
and dynamic, centered on the tenets of integrity, honesty and sincerity.
PUNBs Vision & Mission Objectives
Vision
To be the premier centre of excellence in entrepreneurial development.
Mission
To provide opportunities to Bumiputera entrepreneurs to achieve business success;
through the provision of financial and corporate support.
Objectives
To increase the quantity and enhance the quality of Bumiputera entrepreneurs in the
industrial and commercial sectors.
To promote the development of resilient Bumiputera entrepreneurs in strategic industries.
To instill entrepreneurial culture amongst Bumiputera entrepreneurs, and equip them with
adequate knowledge and experience.
2.2 Corporate Culture

PUNB operates within a Corporate Culture that is designed to inspire and inform our
staff, entrepreneurs, and the Bumiputera community at large; to benchmark their
activities on the highest standards of entrepreneurship excellence and values in business
methodology and conduct.The key ingredients are
Professionalism
Excellent Business Management
Systematic and Disciplined Management
Negotiation Skills
Decisive and Visionary
Commercialism
Wisdom in Taking Risks
Quality Products and Services
High Creativity
Service Delivery
Cost of Production
Technology
Ethics
High Ethical Values
Transparent Management Principles
Commercial and Social Considerations
Honest and Trustworthy
Commitment, Loyalty and Cooperation
3.
Facilities Provided By PUNB
3.1 Business Premises

PUNB offers retail premises situated at strategic location available for rental at
competitive rate to Bumiputera entrepreneurs. However priority will be given to
entrepreneurs under the PUNB schemes.
Example :
3.2 Financing
I.
Financing (RM5,000 - RM100,000)
PROSPER Usahawan Muda scheme offers financing between RM5k to RM100k to start
up business.
It is suitable for:Young Bumiputera who are keen to venture into business
What it offers:Shari'ah compliant financing products
Amount of financing
i. INDIVIDUAL From RM5,000 to RM50,000
ii. PARTNERSHIP Up to RM100,000
Payment tenure up to 7 years
Corporate Development & Monitoring Support
Entrepreneur Development & Training.
II. Financing (RM100,000 - RM1 mil)
PROSPER Runcit scheme offers financing between RM100k to maximum RM1mil for
business needs.
It is suitable for:Bumiputera entrepreneurs who are keen to venture or expand their retail business
What it offers:Shari'ah compliant financing products
Financing from RM100,000 to RM1,000,000
II. Financing (RM500,000 - RM5 mil)

For financing between RM500k to RM5mil, customers could choose either PROSPER
Pemborong scheme or SME scheme.
a.
PROSPER Pemborong scheme;
Suitable for:Bumiputera entrepreneurs who are keen to venture or expand their wholesale distribution
or supply business
What it offers: Shari'ah compliant financing products
Entrepreneur Development & Training
b.
SME Scheme;
Suitable for:Bumiputera entrepreneurs in Small & Medium Enterprises who are keen to set or grow
their manufacturing or services business of high growth and export potential
What it offers: Shari'ah compliant financing products
4.
Services.
4.1 Corporate Advisory

Development & Monitoring
PUNB offers advisory facilities where Business Services and Entrepreneurial Skill
Courses are also made available in further equipping passionate entrepreneurs.
4.2 Business Services:
For pre-business operations;
Includes Premises review, Monitoring of Accounts and also Business advisory
4.3 Training
Entrepreneur & Enterprise Development
In addition to financing facilities, PUNB also provides training for PUNB entrepreneurs
to enhance their entrepreneurial skills and develop their enterprise. Some of these training
programmes are also open to the public.
4.4 Business Development
Networking & Promotion
Network distribution is the key to successful business, therefore PUNB creates an active
platform for both public and PUNB entrepreneurs to expand their networks by
participating in events organised by PUNB.
10
5.
Other Programmes.
Siswazah Perantis Programme.

PUNB introduced a special programme for young graduates - Program Siswazah Perantis
to help unemployed young Bumiputera graduates acquiring skills in managing a business
through an attachment programme at companies under PUNB (Mentor) stable.
Participants (apprentices) of this programme will have a hands-on learning experience
managing a business apart from theoretical training and courses.
Objectives
To provide opportunities for young graduates to venture into retail and distribution
business
To help young graduates to accumulate knowledge through skill trainings and courses
To enhance young graduates' skills in line with the industrial needs to facilitate
employment opportunities
Apprentice
The apprentice will receive a monthly allowance throughout the entire training
The training duration is 6 months or 1 year depending on the field of the business
The apprentice will have the opportunity to learn managing a business apart from
undergoing theoretical and practical trainings and courses on preparing a Business Plan
Upon completion, apprentice who is qualified and interested to venture into business will
be considered for PROSPER Siswazah financing scheme
Eligibility
Bumiputera not more than 30 years in age on the date of registration
Young graduates with Degree, Diploma or Skill Certificate (Level 2) from Higher
Learning Institutions recognised by the Government
Young graduates without a permanent job and have an interest to become an
entrepreneur
Willing to undergo full time training programme
Mentor
The majority of the mentors comprised companies and businesses under PUNB stable
Companies that have collaborative ties with PUNB are also included as mentors in this
programme
11
6.
Appendixes.
6.1 Brochures.
12

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1

Introduction to Unit Trust in Malaysia.

Facilities Provided by PUNB.

Other Programmes Offered.

Introduction To Unit Trust in Malaysia.

PUNB (Perbadanan Usahawan Nasional Berhad).

2.1 PUNB Background.

2.2 Corporate Culture

Facilities Provided By PUNB

3.1 Business Premises

Financing (RM5,000 - RM100,000)

II. Financing (RM500,000 - RM5 mil)

PROSPER Pemborong scheme;

4.1 Corporate Advisory

Siswazah Perantis Programme.

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