Student Saving Scheme @ Post Office Savings Bank

While studying for research on other topic, I found about POSB which of course sparks my interest to know more about it... So, I compiled relevant information on POSB and I find it to be quite amusing. Shahirasul - 15/12/2011

Post Office Savings Bank

Malays in the early days saved in various ways. Children were taught to keep loose change in a tabung buluh (made from a hollow bamboo trunk, which is equivalent to a "piggy bank" in English culture). Other children might be encouraged to collect new ten-cent stamps and paste them in a special book, in what was known as Student Saving Scheme during the days of the Special Malay Classes in the 1950’s. When the piggy bank was full, or when the SSS book was filled, the children would transfer the money to the Post Office Savings Bank (POSB).

POSB was established under the Savings Bank Ordinance in 1876 and started operation in 1877. The objective was to collect small savings in Singapore and the then Federatated and Unfederated States of Malaya.

Since 1949 savings with the Post Office Savings Bank have grown steadily. In 1949 it had 229,652 depositors with a credit balance of RM47.2 million. At the time of the launching of Bank Simpanan Nasional, Malaysia on 5th December 1974, it had more than 2.5 million depositors. The accumulated assets of the bank were over RM537 million, out of which over RM526 million were in government securities. The amount standing to the credit of depositors was over RM511 million. At the end of 1981, the Bank had more than 4.3 million depositors with accumulated assets of more than RM1.2 billion.

In 1971, POSB was transformed into a statutory corporation, independent of the Post Office. Bank Simpanan Nasional or National Savings Bank is the result of the separation from Singapore.

With the establishment of Bank Simpanan Nasional, a new chapter is opened in the history of public saving institutions in the country. Bank Simpanan Nasional Act, 1974 provides for the transfer of the powers of management from the Postal Services Department to the Board of Directors which will assume functions and undertake responsibilities in accordance with the objectives of the Act.

References:

Act 146 - Bank Simpanan Nasional 1974
http://www.agc.gov.my/Akta/Vol.%203/Act%20146.pdf

Lee Sheng-Yi, The Monetary and Banking Development of Singapore and Malaysia (ISBN 9971-69-146-9) Singapore University Press

Malaysian Legislation - Post Office Savings Bank Act 1948 (Repealed by Act 146)
http://www.commonlii.org/my/legis/consol_act/posba1948rba146337/

The Beginnings of Bank Simpanan Nasional
http://www.mybsn.com.my/ab_our_history.html