• To provide another value added service to members of SBEU.
• To generate a higher rate of dividend for the SBEU Benevolent Fund.

We believe that such a scheme would assist members to have access to emergency funds and/or to finance educational course fees, purchase of electrical appliances, furniture, computers or other personal expenses. Hopefully it may also prevent our members to resort to money lenders or loan sharks.

Currently the Benevolent Fund assets (which are mainly held in Fixed Deposits) is almost RM2 million and is expected to increase by about half a million a year. In view of the low interest rate regime in Malaysia, fixed deposits rates are not expected to remain at a low 3.5% to 3.8%. Consequently, we are only able to declare a dividend of 4% for the financial year ending 31st March 2004.

The proposal may entail the followings:

• Loan Amount - Maximum $5000, Tenure Maximum 3 Years.

• Members must have at Least $1500 in their account AND have been a member for at least 5 years. Amount in Funds to be used as part security.

• Interest Rate - Average BLR of commercial Banks.

• Repayment through salary deductions/standing instructions.

Please note that this proposal is at the conceptual stage. We now like to invite all members to give their views, opinions and suggestions on this idea. Only if the majority of members welcome the idea would we implement the scheme.

Please note that we will need to obtain consent of all members to amend the rules of the SBEU Benevolent Fund to be able to implement the scheme. We also need statutory approval from the Director General Of Trade Unions and other relevant authorities.

We also need to ensure that proper safeguards and controls, and due diligence are in place, as well as adequate security are held by SBEU before granting the loan.

Pls email us at sbeugs@pc.jaring.my or write to us at our HQ address. We would appreciate it if your comments can reach us by 15 June 2004.