EPF And UBER Signs Pact To Improve Retirement Savings Of UBER Driver
KUALA LUMPUR, 19 October 2017: The Employees Provident Fund (EPF) today signed a Memorandum of Understanding (MoU) with Uber Malaysia to encourage its ride-sharing driver-partners to save for their retirement through the 1Malaysia Retirement Savings Scheme (SP1M).
The SP1M is designed to allow individuals who are self-employed or with no fixed monthly income, such as taxi drivers, petty traders, farmers, housewives and freelancers as well as Malaysians working abroad, to contribute to a retirement fund managed by the EPF.
EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said, “We introduced the SP1M in 2010 in response to the growing number of Malaysian informal sector workers who do not have enough savings or financial assets to provide for their retirement. We are pleased that Uber shares our concerns and has agreed to partner with us.
“In addition, Uber has agreed to other areas of collaboration, including facilitating a series of financial planning talks by EPF and allowing EPF to promote retirement planning to driver-partners.”
Commenting on the collaboration, Warren Tseng, General Manager for Uber in Malaysia and Singapore said, “We are thrilled to partner with EPF to help driver-partners make better choices for their retirement plans and future financial security. While driver partners have contributed greatly to improving urban mobility and connectivity, we now want to encourage them to take charge and be in the driver’s seat of their own retirement.”
Under the SP1M scheme, individuals may voluntarily contribute a minimum of RM50 into their SP1M account up to a maximum of RM60,000 a year and entitled to earn dividends on their savings. Driver partners who become members of SP1M will also enjoy the same benefits enjoyed by current EPF members such as the RM2,500 death benefit (subject to terms and conditions).
On top of the yearly dividends and EPF benefits, the Government will contribute 10 per cent of annual contributions to a maximum of RM120 per year until end of this year for members below age 55. The EPF is currently in discussions with the Government to continue extending this benefit.
Statistics by the Department of Statistics Malaysia revealed that out of 22 million of Malaysia’s working population, a total of 6.8 million are actively contributing to the EPF and 1.7 million are covered by the public pension scheme. The remaining 13.7 million comprise individuals who are self-employed or freelancers who are not covered by any formal social protection programme in the country.
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.
Uber’s mission is to bring reliable transport everywhere, to everyone. We started in 2010 to solve a simple problem: how do you get a ride at the touch of a button? Six years and more than two billion trips later, we’ve started tackling an even greater challenge: reducing congestion and pollution in our cities by getting more people into fewer cars. Uber is now available in 15 cities nationwide: Kuala Lumpur, Johor Bahru, Penang, Ipoh, Kota Kinabalu, Kuching, Melaka, Seremban, Kuantan, Langkawi, Alor Setar, Miri, Batu Pahat, Kuala Terengganu and Sandakan. Find out more at www.uber.com.