What is Dividend ASB and How Can Employers Promote It?

Financial security doesn't only come from a monthly paycheck. It also depends on how employees manage and grow their savings.

Dividend ASB is one of the ways Bumiputera employees build wealth over time.

That’s why employers should pay attention, not just to salaries and bonuses, but also to long-term savings tools like ASB.

This article will share details about Dividend ASB and what employers can do to support employees in having dividend ASB.

What is ASB?

ASB, short for Amanah Saham Bumiputera, is a fixed-price unit trust fund introduced in 1990 by Permodalan Nasional Berhad (PNB).

It was created to help Bumiputera individuals grow their wealth through long-term investment.

Unlike other investments where prices fluctuate, ASB maintains a stable price of RM1 per unit, making it a less risky and more predictable savings option.

Only Bumiputera Malaysians are eligible to invest in ASB. This includes Malays, Sabah and Sarawak Bumiputera, and some groups as defined under the Federal Constitution.

Employees who qualify can start investing as early as age 18, and even earlier with a trustee.

By knowing which of your employees are eligible, you are able to explore how ASB might fit into your financial wellness initiatives at work.

What is ASB Dividend?

Every year, investors in ASB receive dividends based on the fund’s performance.

These dividends are announced in December and typically credited in January.

The dividend payout is one of the main attractions of ASB, especially since it has consistently delivered returns, sometimes even beating fixed deposit rates.

Dividends are calculated based on the average monthly minimum balance across the year.

For example, if an employee saves RM10,000 consistently throughout the year and the dividend rate is 5.25%, they would receive RM525 at the end of the year.

However, if the amount fluctuates, the dividend received will be based on the lowest balance each month.

Historical Dividend Rates

Here’s a quick look at the recent 10-year trend for Dividen ASB:

Year	Dividend (sen)	Bonus (sen)	Total (sen)
2023	4.25	1.00	5.25
2022	3.35	1.25	4.60
2021	4.25	0.75	5.00
2020	3.50	0.75	4.25
2019	5.00	0.50	5.50
2018	6.50	0.50	7.00
2017	7.00	1.25	8.25
2016	6.75	0.50	7.25
2015	7.25	0.50	7.75
2014	7.50	1.00	8.50

Even though the rates have slightly dropped compared to the 1990s, ASB still remains a competitive investment choice, especially for employees who prefer low-risk savings.

Why ASB is Relevant for Employees

For many Bumiputera employees, ASB is a tool for building long-term financial stability. Many workers live paycheck to paycheck.

When unexpected costs arise, such as car repairs, hospital bills, or school fees, having savings from ASB can make a big difference.

The returns may not be massive overnight, but over the years, they build up quietly.

For example, an employee who saves RM10,000 and leaves it untouched could earn several hundred ringgit in dividends annually.

After 10 or 15 years, this grows into a sizeable nest egg.

From an employer’s point of view, an employee who has peace of mind about their personal finances is more likely to be engaged and productive at work.

That’s why understanding the benefits of ASB can be a small but impactful step toward building a healthier and more focused team.

How Employers Can Promote ASB Participation

Employers can play a key role in helping their employees build better financial habits. Here are some simple ways to promote ASB participation at the workplace:

Host financial literacy talks

Invite certified speakers from banks or ASNB to explain how ASB works, the benefits of compounding dividends, and why saving early matters.

Partner with financial institutions

Collaborate with ASNB or banks during wellness weeks or HR events to provide info booths or one-on-one consultation sessions.

Offer voluntary payroll deductions

Give employees the option to deduct a small portion of their salary for monthly ASB investments. This can make saving easier and more consistent.

Share educational resources

Provide simple brochures, infographics, or internal newsletters that explain the basics of ASB and how to start investing.

Include ASB info in onboarding

For new hires, introduce ASB as part of your financial wellness briefing to encourage early saving habits.

Can ASB Affect Payroll or EPF?

This is a question that comes up often. The simple answer is no. ASB investments do not affect payroll, EPF (Employees Provident Fund), SOCSO, or EIS contributions.

ASB is a personal investment made by the employee.

Even if payroll deduction is offered as an option, it functions more like a voluntary savings plan and is not linked to statutory deductions or employer obligations.

This means you don’t need to worry about changing how payroll is processed.

Your HR or finance team can still follow the same structure for EPF and other contributions, even if ASB-related deductions are included as an optional feature.

So, while ASB can be promoted as part of a broader employee financial wellness initiative, it stands alone and doesn't interfere with payroll compliance.

ASB Loan (Pembiayaan ASB)

Some employees may not have enough savings to invest a large amount into their ASB account upfront. In this case, an ASB loan, or Pembiayaan ASB, can be an option.

An ASB loan is a financing facility provided by certain banks where the loan amount is invested directly into an ASB account.

The borrower will then make monthly repayments, just like a regular loan. At the same time, their ASB account continues to earn dividends.

Here’s a simple example:

If an employee takes an ASB loan of RM50,000, the money goes into their ASB account.

Over time, the account earns dividend, and ideally, the dividend amount is higher than the loan interest.

At the end of the tenure (usually 5 to 30 years), the borrower owns the full value of the investment.

For employees with stable income and long-term financial goals, ASB financing can help build capital faster.

But it also comes with risks, especially if the dividend rate drops or if they miss their repayments.

You can help the employees by educating them on the pros and cons. Invite bank partners to share detailed info, or highlight this option during financial talks.

Some employers also share comparison sheets between ASB loans and regular savings to help staff make informed decisions.

Tax Implications

ASB dividends are not taxable in Malaysia. This means that when employees receive their annual dividend payout, they do not need to include it in their income tax filing.

The returns from ASB are already exempted under local tax laws, as they are considered income from unit trust investments managed by ASNB (Amanah Saham Nasional Berhad).

However, employers should be aware of one additional topic related to ASB and zakat.

For Muslim employees, zakat may be applicable depending on the syariah compliance level of the ASB fund and the annual returns.

This isn’t something the employer needs to calculate, but it’s worth sharing information during financial planning sessions so employees know what to expect.

In short, while ASB earnings don’t add to an employee’s tax burden, it's still good practice to:

Share this exemption during tax season briefings
Encourage employees to review their investment statements
Remind them that zakat may still apply for eligible staff based on religious obligations.

FAQ

Is ASB investment compulsory?

No, ASB is a voluntary investment scheme. Employees are not required by law to invest in ASB. However, it remains a popular option among Bumiputera Malaysians due to its stable returns and government backing.

Can non-Bumiputera employees invest in ASB?

No, ASB is only available to Bumiputera individuals. Non-Bumiputera employees are not eligible for ASB but can explore other investment options offered by financial institutions, such as unit trusts or fixed deposits.

What is the latest ASB dividend rate?

For the financial year ending 31 December 2023, the total ASB dividend payout was 5.25%, which includes a 4.25% dividend and 1.00% bonus. The rate is announced by ASNB every December and may change based on fund performance.

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