ASB, ASNB, and Unit Trusts in Malaysia: How Fixed-Price Funds Work

ASB is the most widely held unit trust fund in Malaysia: as of December 2025, it had 11.4 million unitholders and paid out a record RM10.4 billion in a single year. If you are Bumiputera, it is almost certainly the highest risk-adjusted, tax-exempt return you can access without picking individual stocks. If you are not Bumiputera, there are sister funds open to you. This guide explains exactly how fixed-price ASNB funds work, who can invest, what the dividends have been, and how ASB financing actually functions.

What is ASNB and how do unit trusts work?

Amanah Saham Nasional Berhad (ASNB) is a wholly owned subsidiary of Permodalan Nasional Berhad (PNB) and is the largest unit trust management company in Malaysia, managing 16 funds. It operates under a licence from the Securities Commission Malaysia, which regulates all unit trust funds under the Capital Markets and Services Act 2007.

A unit trust pools money from many investors. A professional fund manager invests that pool in a diversified portfolio of stocks, bonds, and other assets. Investors hold “units,” and returns flow back as income distributions (dividends).

What makes ASNB special is the distinction between fixed-price and variable-price funds.

Feature	Fixed-Price Fund	Variable-Price Fund
Unit price	Always RM1.00	Fluctuates with NAV
Capital risk	None (principal protected by design)	Can fall below purchase price
Typical investor	Low to moderate risk tolerance	Moderate to higher risk tolerance
Examples	ASB, ASB 2, ASM, ASM 3	ASN Equity 2, ASN Imbang 1, ASN Sara 1
Return	Annual income distribution	Capital gain + income distribution

With a fixed-price fund, you will never see your RM1.00 per unit fall. The risk borne by PNB as the fund sponsor is that they must always redeem units at RM1.00, regardless of portfolio performance. In exchange, annual returns are declared rather than guaranteed, and distributions vary from year to year.

The ASNB fund family at a glance

ASNB manages 16 funds as of 2025. The key distinction for Malaysians is eligibility.

Bumiputera-only fixed-price funds

These funds are open only to Malaysian citizens who qualify as Bumiputera under the relevant definitions:

Amanah Saham Bumiputera (ASB) - the flagship fund, maximum 300,000 units per adult account
Amanah Saham Bumiputera 2 (ASB 2) - same structure, same 300,000-unit cap per adult
Amanah Saham Bumiputera 3 Didik (ASB 3 Didik) - targeted at education savings

Fixed-price funds open to all Malaysians

Amanah Saham Malaysia (ASM) - fixed price, open to all Malaysian citizens
Amanah Saham Malaysia 2 Wawasan (ASM 2) - fixed price, all Malaysians
Amanah Saham Malaysia 3 (ASM 3) - fixed price, all Malaysians

Variable-price funds (all Malaysians)

ASNB also offers a range of variable-price funds: ASN Equity 2, ASN Equity 3, ASN Equity 5, ASN Imbang 1, ASN Imbang 2, ASN Sara 1, and ASN Sara 2. Since February 2024, all variable-price fund transactions use forward pricing, meaning the NAV applied is the one calculated after you submit your transaction, not before. (Source: ASNB, 2024)

ASB dividends: recent history

ASB income distributions are announced once a year, typically in December for the financial year ending 31 December. The distribution covers two components: income (from dividends and interest earned by the portfolio) and a bonus element.

Financial Year	Income (sen/unit)	Bonus (sen/unit)	Total (sen/unit)
FY2023	5.50	0.25	5.75
FY2024	5.50	0.25	5.75
FY2025	5.75	0.00	5.75

FY2025 marked the largest single-year payout in ASB’s history: RM10.4 billion distributed to 11.4 million unitholders. (Source: ASNB press release, December 2025; Bernama, 2025)

For sister funds:

ASB 2 declared 5.25 sen per unit for FY ending March 2024 (Source: ASNB press release, March 2024)
ASB 3 Didik declared 5.25 sen per unit for FY ending June 2024 and 5.25 sen per unit for FY ending June 2025 (Source: ASNB press release, 2025)
ASM declared 4.75 sen per unit for FY ending March 2024 (Source: ASNB/Bernama, 2024)

These figures are historical. Future distributions depend on portfolio performance and are not guaranteed.

Tax treatment: the big advantage

Income distributions from ASB and other ASNB funds are exempt from personal income tax for Malaysian individual investors. You do not declare them in your tax return; the fund handles tax at the fund level before distributing.

A note on the 2025 dividend tax change: dividend income from Malaysian companies exceeding RM100,000 per year is now subject to 2% tax. ASNB distributions are not company dividends; they are unit trust income distributions, so the exemption for individual investors remains in place. Verify with LHDN if your situation is complex. (Source: LHDN, hasil.gov.my)

Investment limits

For ASB and ASB 2, the maximum per adult account (Akaun Dewasa) is 300,000 units each. This limit was raised from 200,000 units in October 2022. (Source: The Star, 7 October 2022)

Note that distributions reinvested as units may push your balance above the cap. ASNB allows this: the limit applies to fresh purchases, not reinvested distributions.

For transactions via the myASNB mobile app, there is a per-transaction cap of RM30,000 across all funds for digital investment submissions. Larger amounts require a counter visit.

ASB financing: borrowing to invest

ASB financing is a product offered by Malaysian banks that lets you borrow money specifically to buy ASB units, using your ASB certificate as collateral. The idea is that the ASB dividend yield should exceed the loan interest rate, generating a positive spread.

How it works

You take a term loan or Islamic term financing from a bank. The bank disburses the loan proceeds directly into your ASB account as units. You then repay the loan in monthly instalments over a fixed tenure (typically 10 to 30 years). If the annual ASB dividend exceeds your effective financing rate, the net result is a wealth-building mechanism funded largely by the dividend itself.

Eligibility

Only Malaysian Bumiputera are eligible (since ASB is the underlying fund)
Minimum age is typically 18; maximum age at end of tenure varies by bank, usually 65 to 70
Most banks require a salary account or proof of stable income

Debt Service Ratio (DSR)

Banks assess your DSR before approving any loan. DSR is the percentage of your gross or net monthly income consumed by all monthly debt commitments.

DSR range	Likely outcome
Below 40%	Strong approval likelihood
40% to 60%	Borderline, depends on income tier and bank policy
Above 60%	Unlikely to be approved; joint applicant may help

For high-income earners (net monthly income above RM10,000), some banks apply a higher DSR tolerance of up to 70%. The OPR as of May 2026 is 2.75%, held steady since July 2025. (Source: Bank Negara Malaysia, 2026) ASB financing rates are typically priced above the OPR, so the current indicative range from major banks runs from approximately 3.5% to 5.0% p.a., though you should request the exact rate from your bank before committing.

Should you use ASB financing?

It depends on the spread. If ASB pays 5.75 sen and your all-in financing cost is 4.5%, the gross spread is 1.25 percentage points. On a RM200,000 loan that is roughly RM2,500 per year. The risks: distributions can fall, narrowing or reversing the spread; loan repayments reduce monthly cash flow; and a 20-year tenure is a long obligation. From 1 October 2025, an 8% SST applies to financing fees on investment-linked financing products. (Source: ASNB FAQ, 2025)

Non-Bumiputera options

If you are not Bumiputera, you cannot invest in ASB, ASB 2, or ASB 3 Didik. Your ASNB fixed-price options are ASM, ASM 2 Wawasan, and ASM 3. ASM distributions have historically been slightly lower than ASB. For equity exposure through ASNB, the variable-price ASN Equity and ASN Imbang series are open to all Malaysians, with NAV fluctuation risk. Outside ASNB, any Malaysian can invest in Securities Commission-approved unit trusts via private fund houses.

Key takeaways

ASB is a fixed-price unit trust at RM1.00 per unit, managed by ASNB under PNB, open only to Bumiputera Malaysians.
The FY2025 distribution was 5.75 sen per unit, the largest total payout (RM10.4 billion) in ASB’s history.
Distributions from ASNB fixed-price funds are exempt from personal income tax for individual investors.
The maximum investment in ASB and ASB 2 is 300,000 units per adult account (excluding reinvested distributions).
ASB financing lets you borrow to invest in ASB, using the dividend spread as the engine. It works when the dividend exceeds the financing rate, but the dividend is not guaranteed.
Non-Bumiputera investors can access ASNB’s fixed-price funds via ASM, ASM 2 Wawasan, and ASM 3.
The current OPR is 2.75%, held steady since July 2025, which anchors the financing rate environment.

Frequently asked questions

Can I invest in ASB if I am not Bumiputera? No. ASB, ASB 2, and ASB 3 Didik are restricted to Malaysian citizens who qualify as Bumiputera. If you are a non-Bumiputera Malaysian, the ASNB fixed-price options open to you are ASM, ASM 2 Wawasan, and ASM 3.

Is the ASB dividend guaranteed every year? No. ASB distributions are declared annually by ASNB after the financial year ends. They reflect actual fund performance and can change from year to year. The RM1.00 unit price is fixed, but the annual distribution rate is not. Always treat past distributions as historical reference, not a forward guarantee.

How do I open an ASB account? Visit any ASNB agent bank (Maybank, CIMB, RHB, Public Bank) or an ASNB service centre with your MyKad. The myASNB mobile app also allows account opening, with digital transactions capped at RM30,000 each.

Is ASB financing the same as a personal loan? No. ASB financing is a secured term loan: your ASB certificate is the collateral and the bank disburses proceeds directly into your ASB account. Rates are generally lower than unsecured personal loans, but the spread between dividend and interest rate can narrow in low-yield years.

Do I need to declare ASB dividends in my income tax return? For most individual investors, no. Distributions from ASNB unit trust funds are treated as exempt income. Tax law can change; confirm with LHDN or a licensed tax advisor if your situation is complex.

Learn more

Explore related topics in our investing basics guide series:

Educational content only, not financial advice. Verify current figures with official sources.