Last updated : 3/11/19 3:29 PM     

Budget 2018: EPF Welcomes Increase In Government Contribution In 1Malaysia Retirement Scheme (SP1M)

KUALA LUMPUR, 27 October 2017: The Employees Provident (EPF) lauds the Government’s announcement to provide more incentive to the retirement well-being of the informal sector workers who are not covered by a formal or holistic system of social protection.

 

During the tabling of Budget 2018, Prime Minister Datuk Seri Najib Razak announced that the Government’s contribution in 1Malaysia Retirement Scheme (SP1M) will increase to 15 per cent subject to a maximum of RM250 per person per year for a period of five (5) years from 2018 to 2022.

 

EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said, “The EPF has always been at the forefront of social protection and we are concerned about the well-being of some
13.7 million Malaysians who are not covered by a formal or holistic social protection system.

 

“Therefore, we are pleased with this announcement, as it highlights the Government’s commitment to the overall well-being of the rakyat and strong support of efforts to increase the take-up rate for SP1M.” 

 

Introduced in 2010, the SP1M is designed to cater to the growing number of Malaysians who do not have a fixed monthly income but desire a retirement fund that can safely grow their savings for the future. Individuals may voluntarily contribute a minimum of RM50 into their SP1M account up to a maximum of RM60,000 a year. SP1M account holders are also able to enjoy the same benefits by EPF members such as earning the same dividend rates on their savings and the RM2,500 death benefit.

 

For more information on SP1M, please visit the EPF website at new.epf.gov.my or call the EPF Contact Management Centre at 03-89226000 or visit any EPF counters nationwide.

 

About the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund to help its members achieve adequate savings for a comfortable retirement. This is in line with EPF’s vision to help members achieve a better future and the mission to safeguard members’ savings and deliver excellent services. The EPF has evolved significantly from transaction-centric to a professional fund management organisation with a strong focus on retirement security. The EPF is guided by a robust and professional governance framework when making investment decisions. It continues to play a catalytic role in the nation’s economic growth and seeks to cultivate a savings and investment culture among its members to improve the country’s financial literacy level.