This EPP has led the establishment of a private pension industry in Malaysia to enable Malaysians to maintain a comfortable lifestyle upon retirement. The country’s pension system, previously solely provided by the Employees Provident Fund (EPF), now includes private pension funds, which are also aimed at attracting individuals who do now participate in the EPF system.
- The net asset value of private retirement schemes (PRS) reached RM573.1 million with 105,431 members as at 31 October 2014. Since the launch of the scheme in July 2012, 11 schemes from 44 retirement funds have been offered.
- The assets-under-management for PRS grew by 91% from end 2013 to October 2014, while the number of new members rose 138% compared to the same period in 2013.
- Following Budget 2014’s one-off incentive of RM500 to PRS contributors aged 20-30 years and with a minimum cumulative investment of RM1,000, the number of youth contributors rose to 21,086, or 20% of total PRS contributors as at October 2014 as compared to a mere 3,218 or 8% of total PRS contributors in October 2013.