Last updated : 3/13/19 12:34 PM     

Registration For Simpanan Shariah Starts 8 August 2016

KUALA LUMPUR, 20 June 2016: The Employees Provident Fund (EPF) announces today that the new retirement savings option Simpanan Shariah, which will be launched in 2017, will be open for registration to members on Monday, 8 August 2016. 

 

In a briefing today, EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said the EPF’s Simpanan Shariah is a new savings option for members who wish to convert their current conventional EPF savings to one that is managed and invested in accordance with Shariah principles. Simpanan Shariah is open to all members regardless of race, religion and nationality.

 

“Based on the Members’ Consultation exercise that the EPF carried out last year, more than 70 per cent of the survey respondents agreed that there should be an option to have their retirement savings managed according to Shariah principles. Hence, we are pleased to introduce Simpanan Shariah to meet members’ demand.”

 

Datuk Shahril said the EPF has allocated an initial fund size of RM100 billion, which is equivalent to about 15 per cent of the EPF’s total investment asset of RM681.71 billion as at end March 2016. He added that the EPF’s venture into Islamic investments was not new as more than 45 per cent, or RM295 billion, of EPF’s total investment assets are already Shariah compliant. 

 

“Moving forward, we expect to grow our investment in Shariah assets by at least RM25 billion a year on average, or in tandem with the total asset growth in order to maintain a minimum of 45 per cent Shariah asset.”

 

On the operational front, the current contribution process and enforcement process remain the same. Members who choose to convert their current EPF account, which will now be termed as Simpanan Konvensional, to Simpanan Shariah will need to personally go to any EPF branch with their Identification Card to verify their thumbprint.

 

Applications for Simpanan Shariah registration will be on a first-come first-served basis starting 8 August 2016. To be eligible for Simpanan Shariah 2017, members must submit their application by 23 December 2016 and subject to the availability of the RM100 billion fund.

 

In compliance with Shariah principles, the dividend rate for Simpanan Shariah will be based on portfolio performance of Shariah-compliant investment and will not have any guaranteed minimum dividend. Simpanan Shariah will take effect on 1 January 2017.

 

A Shariah Advisory Committee (SAC) has been formed to oversee all operational, investment and governance aspects of Simpanan Shariah.  The SAC will also recognise Shariah investment products as regulated or approved by Bank Negara Malaysia and the Securities Commission Malaysia.

 

For details, visit the EPF website at new.epf.gov.my or call the EPF Contact Management Centre at 03-89226000.

 

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.