Make Simpanan Shariah Your Choice of Retirement Planning

Make Simpanan Shariah Your Choice of Retirement Planning
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Are you seeking financial peace of mind? If you’re a member of the Employees Provident Fund (EPF), you may have heard about the options of Simpanan Konvensional and Simpanan Shariah. With EPF's Simpanan Shariah, you can manage your savings according to Islamic principles by investing in halal options, free from usury and other prohibited activities.  

Imagine having the ability to shape your retirement journey based on your values – that's what Simpanan Shariah offers. 


What you need to know before switching to Simpanan Shariah

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If aligning your financial choices with your values is a priority, Simpanan Shariah is not just an option – it's an empowering opportunity. The EPF understands that your retirement journey is personal, and with Simpanan Shariah, they've put control in your hands, ensuring that your financial choices align with your principles. 

Introduced by the EPF in 2017, this initiative signifies a notable enhancement in the organisation's offerings. As an EPF member, you now have the option to manage and invest your accounts in adherence to syariah principles or stick with your existing Simpanan Konvensional.

In our pursuit as Muslims, we aspire to cultivate savings that are untainted by usury and injustice, recognising that true tranquility in life stems from sources that are both lawful and pure. Despite this, a significant number of Muslim members have yet to embrace the benefits of this syariah-compliant account.

The Simpanan Shariah Account is a comprehensive and fair choice, providing an opportunity for every individual to engage in a financial system that adheres to moral and ethical values. Importantly, the option to switch to the Simpanan Shariah Account extends beyond Muslim members; it's open to all EPF members, irrespective of ethnicity or religion.

If you still find yourself grappling with a comprehensive understanding of what Simpanan Shariah entails, leading to hesitation in making the switch, worry not — we're here to simplify things for you. 

So why choose Simpanan Shariah?

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For Muslim Members:

  • This syariah-compliant savings is managed and invested according to the principles of syariah as outlined in Section 43A of the EPF Act.
  • It serves as a means for members to build retirement savings that are syariah-compliant, especially for the purpose of fulfilling Hajj and Umrah, with an assurance of funds derived from lawful sources.
  • It safeguards members' savings from being utilised for purposes conflicting with syariah principles, notably avoiding usury (interest), maysir (gambling), and gharar (uncertainty in contracts) commonly found in investments in conventional banking and insurance.
  • It helps members (in the event of their demise) provide halal funds (member's savings) to be distributed to heirs as inheritance. 


Non-Muslim Members:

Non-Muslim members can also choose Simpanan Shariah as an alternative to Simpanan Konvensional, offering: 

  • Similar investment objectives and risk profiles;
  • Allocation of strategic assets in a similar manner;
  • Only engages in ethical investments that adhere to syariah principles; 
  • Minimal investment exposure in the financial sector compared to Simpanan Konvensional.


Dividends for Simpanan Shariah Account:

  • The Special Muzakarah Committee of the National Fatwa Council for Islamic Religious Affairs Malaysia, convened on August 18, 2015, determined that the EPF is not obliged to purify the dividends of all EPF members who agree to switch to the Simpanan Shariah Account; 
  • Dividends generated from the Simpanan Shariah Account can be fully utilised; 
  • However, the decision to purify dividends is at the discretion of individual Muslim members, and you are advised to seek the opinion of the respective State Islamic Religious Councils; 
  • There is no guaranteed minimum dividend rate as the distribution is based on the actual performance of the syariah-compliant investment portfolio; 
  • Your savings will be distributed to heirs as inheritance, providing peace and fairness in inheritance. 


What differences occur when opting for Simpanan Shariah? 

  • Existing withdrawal facilities remain unchanged, except for the Member Investment Scheme, where you’re only allowed to invest in syariah-compliant funds approved by the EPF;
  • Employers are not required to make separate contribution payments, remaining the same as before; 
  • Naming policies remain constant and unchanged; 
  • You continue to receive the same annual statements as usual. 
Read More About Simpanan Shariah

How to register for Simpanan Shariah

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Registration can be done online through the KWSP i-Akaun application by following these steps: 

  1. Click on Profile
  2. Select Account Details
  3. Follow the on-screen instructions until your registration is successfully completed

Yes, it’s as straightforward as that! So, why wait? Take a moment for yourself and promptly fulfil your duty as a Muslim individual.  

Switch to Simpanan Shariah Now