KUALA LUMPUR: The National Education Savings Scheme (SSPN) recorded an investment profit of RM118.46 million for the first half of 2020, an increase of 19.66 per cent compared to RM99.00 million in the corresponding period of last year.
According to the National Higher Education Fund Corporation (PTPTN), the increase in investment profit was supported by short and long term shariah-compliant investments in the local money market that protect the principal while providing high and positive returns.
"The strengthening of the investment strategy by focusing on long-term fixed deposits has succeeded in reducing the pressure from the volatile global equity market, as well as in line with the government's intention to ensure savings in SSPN are always secured and protected, ” said the education fund in a statement on Thursday.
The PTPTN faced many challenges in managing SSPN investment in order to protect the interest of depositors, due to impacts from COVID-19 pandemic on the national economy, it said.
As such, it has taken steps to identify effects from the pandemic on investments through periodic monitoring.
Besides that, sustainable investment strategies and prudent cost management measures are also implemented to ensure a competitive dividend compared to other financial institutions.
"SSPN's track record for the first half of this year continues to increase with total deposits received stood at RM682.02 million compared with RM425.00 million in the corresponding period last year.
"This shows an increase of RM257.02 million or 60.48 per cent, thus making the total SSPN deposit until June 2020 to RM6.57 billion, ” it said.
SSPN is a savings instrument created by the PTPTN and fully guaranteed by the government as well as shariah-compliant using the concept of 'Wakalah Bil Istithmar'.
It offers various saving benefits such as tax assessment relief up to RM8,000, matching grant up to RM10,000, takaful protection and competitive dividends.
As of June 30,2020,184,992 new SSPN accounts have been opened.
Since the SSPN was launched in 2004 until the first half of 2020, about 4.57 million SSPN accounts have been opened. - Bernama