Evaluation of Foreigners Investing in NUCW, M'sia

 
The factors considered are
*   The dividend/returns in Malaysia as compared to Investor's country
*   Compare with reliable best returns given by performing institutions in country of Investor's
*   currency exchange rate between Malaysia and the country of Investor.
    (based on average of 10-yrs performance)
*  Compounding interest is purposely left-out for simplicity;
    (if included, the quantum on maturity will be much higher on both sides,
     but the % increase shall remain same)
*  money transit between countries is not covered here.
 
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  (ave)                       4.60%          2.90%         10.00%           3.15%            5.50% 

Bank Deposit Rate  (ave)                  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% 

                         

Lets assume
*  The other best/safe Investments rate is 1.5-2.0X of the Bank deposit rate
*  Investing in NUCW (M'sia): RM500,000 for 10-yrs at 8.5%pa gives 85%

Computation                                                 M’sia                  S'pore             India              China              Indon 

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 1RM 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  (assume) = 30.00 INR
* Interest earned: from Nucw in M'sia is 8.5% pa & (assume in India 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 earns 76.5% (8.5x9) becomes RM759,000
Though lesser interest, the exchange of 30X makes RM759,000 = 2.277 Cr INR
Thus, investing in NUCW gives INR 2.277Cr vs 1.9Cr in India after 9yrs

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