Unit trust is important !!!

11-12-2008: Saving through unit trusts adds up to the future, says PNB by Regina William Email us your feedback at fd@bizedge.com
GEORGE TOWN: While the government is encouraging spending to stimulate the economy, Permodalan Nasional Bhd (PNB) chief executive officer and president Tan Sri Hamad Kama Piah says savings in the form of unit trusts would go a long way for the future.
Over the past month, PNB has issued RM2 billion worth of units in Amanah Saham Nasional (ASN), Amanah Saham Wawasan (ASW) and Amanah Saham Didik (ASD).
Hamad said while those with money could spend as encouraged by the government, there were others with less who wished to save up slowly.
"As long as you spend your money effectively, it would help the economy," Hamad said after giving a lecture titled Navigating the Rough Ocean at Universiti Sains Malaysia's School of Business Studies here yesterday.
Hamad said with the RM2 billion raised from the unit trusts, PNB would be able to invest effectively with the prevailing low prices.
"Our unit trusts have always been well received. Last week, when we launched the RM1 billion units of ASN, they were snapped up within 3.5 hours. A week earlier, the ASW worth RM490 million was finished in six hours while the RM455 million ASD was also snapped up fast.
"If there is a requirement, we will launch more," Hamad added.
Earlier in his speech, Hamad said there was no direct danger of a financial crisis in Malaysia as seen elsewhere due to the active efforts of the government during the 1997-98 financial crisis.
"Then the banks had to address a situation of overlending and bad loans. Due to the active efforts of the government, our financial institutions are now much stronger in capital, and far more prudent in lending and investing.
"There is no issue of lack of trust or confidence and our housing market did not undergo the type of bubble market seen elsewhere," he added.
Hamad said the problem for Malaysia was not so much contagion from the financial crisis, but the slowdown in the economies of the West that would have an impact on its international trade.
Hamad said with exports being the key driver of the economy especially after the 1997-98 crisis when the depreciation of the ringgit helped make Malaysia's exports more competitive, the recession affecting the US, Japan and Europe, which are Malaysia's major trading partners, would have a negative impact on exports.
"On the other hand, our economy has seen strong domestic demand over the last three years particularly in the services sector.
He said the additional RM7 billion spending by the government, with the reduction of the overnight policy rate from 3.5% to 3.25% and the statutory reserve requirement from 4% to 3.5%, should help support the economy.
He said the Malaysian banking system, particularly commercial banks, was well-positioned to survive the expected downturn in economic activities, with strong capitalisation, sustained profitability and continued improvement in the level of non-performing loans.
"Given their sound balance sheets and ample liquidity in the financial system, banking institutions remain well positioned to meet the financial needs of the economy," he added.
Taken from:
http://www.theedgedaily.com/cms/content.jsp?id=com.tms.cms.article.Article_24a50c66-cb73c03a-19ccba00-3be3f72b