Evaluation of Foreigners Investing in NUCW, M'sia

 
The factors to be consider are
*  The dividend/returns in Malaysia as compared to Investor's country
*  Comparing to reasonable returns given by performing institutions in country of Investors
*  the currency exchange rate between Malaysia and Country of Investor.
    (averaged from the last 10-yrs performance)
*  moving money between countries (this subject is not covered here).
*  Compounding interest is purposely left-out for simplicity;
    (otherwise the quantum of maturity is much higher on both sides)


Evaluation on NUCW returns Vs Foreign currencies

Country                                                      M’sia              S'pore             India               China              Indon 
Currency                                                     RM                SGD               INR                RMB             Rupiah 

Exch of 1RM in Yr-2016                               1                    0.334           15.80             1.605               3215 
Exch of 1RM in Yr-2026                              1                    0.325           22.85            1.750               4233 
Currency Variance over 10yrs                                       2.5%         -44.6%           -9.0%            -31.7% 

Bank Loan Rate                                        4.60%             2.90%         10.00%            3.15%            5.50% 

Bank Deposit Rate                                   3.20%             1.40%            6.66%            1.65%            4.63% 

Other best safe Investments Rate         6.2%               2.8%             10.0%             3.4%            9.0% 

(assumed it's 1.5-2.0X of the Bank loan rate) 
                         

Lets assume
*  The other best safe Investments rate t's 1.5-2.0X of the Bank loan rate
*  Investing in NUCW (M'sia): RM500,000 for 10-yrs at 8.5%pa

Computation 

RM500,000 in local Currency                500,000          162,500       11,425,000       875,000          2,116.5m 
Amt Invested in NUCW, M'sia              RM500000    RM500000    RM500000    RM500000    RM500000

Interest Earned 85% (RM)                      425,000          425,000         425,000        425,000          425,000 
Total Amt on Maturity (RM)                  925,000          925,000          925,000        925,000          925,000

Exch rate of RM to Local Currency            1                     0.325               22.85              1.75                 4233 
Exch rate variance after 10yrs                   1                    97.45%           144.62%        109.03%            131.66% 

Maturity Amt in Local Currency           925,000          292,963       30,567,298     1,764,992        5,155.3m

Compared to their Best safe Investment in their respective Country

RM500k in local curr equivalent          500,000          162,500        11,425,000      875,000          2,116.2m 
Best Safe Interest Income                        6.2%               2.8%                10.0%              3.4%                9.0% 

10yrs return income                                310,000            45,500        11,425,000      297,500          1,904.8m 

Total Amt earned locally                       810,000          208,000       22,850,000    1,172,500        4,021.35m 

Excess Amt earned via NUCW              115,000          84,963             7,717,298      592,492          1,134.0m

Excess % earned via NUCW                     14.2%             40.8%                33.8%           50.5%             28.2% 

Example 2: Comparison of Investment between India & M'sia
Assume, U want to invest INR 1Cr, for period of 9-yrs
* Exchange rate: today RM1 = INR 23.256 & in 9yrs = 30.00 INR (assume)
* Interest earned: from Nucw in M'sia is 8.5% pa & (assume in India others is 10% pa)

Results from Investing in India: Interest earned for 9yrs is 90% (1Cr INR becomes 1.9 Cr INR)
Results from Investing in M'sia: 1Cr INR = RM430,000 earned 76.5% (8.5x9) becomes RM759,000
Though lesser interest, the exchange of 30X makes RM759,000 = 2.277 Cr INR

For main details on investing with Nucw(M;'sia), pls check out listing   https://www.bizmerger.com/home/listing/502