Promises of quick returns cloud judgement of EPF contributors
SEREMBAN: With the high cost of living today, promises of quick returns can easily persuade an individual to participate in various investment schemes, including some which are merely scams.
Malaysian Academic Association Congress (MAAC) president Prof Datuk Dr Mohd Idrus Mohd Masirin said the desire to lead a lavish life in the short-term normally led these individuals to frequently withdraw money from their Employees Provident Fund (EPF).
“Most of them are convinced with verbal guarantees by people whom they know that the investment would succeed, and in the event that it doesn’t, the capital would be returned. In fact, the lack of knowledge regarding the resources and risks involved in the investment also contributes towards them making bad choices,” he told Bernama here.
He said investments made without doing proper research would only cause disappointment and frustration for EPF contributors who withdraw their money for the purpose.
Mohd Idrus suggested that EPF should create a guideline for contributors to identify legitimate investments, thus helping to prevent contributors from being deceived.
“For example, the amount of money which can be withdrawn can be controlled by EPF based on the type of investment the contributor will make, to ensure the welfare of the contributors’ financial savings.
“For example, let’s say one wants to invest in ASB (Amanah Saham Bumiputera), he or she may withdraw a considerable amount, however if it’s to buy shares, the EPF can control the amount to avoid contributors from losing big money, and if they are investments which look dubious, then the EPF may request for confirmation from the relevant party before allowing the withdrawal,” he said.
Mohd Idrus said in general, people in the country were becoming wiser in terms of investing their money, however, sometimes they may not be able to control their impulse to participate in an investment, especially one which promises quick and lucrative returns.