PRS attracted highest number of new members last year

PETALING JAYA: The year 2017 was a record year for the Private Retirement Scheme (PRS), attracting the highest number of new members to the savings fund since its launch five years ago, said the Securities Commission’s (SC) chairman Tan Sri Ranjit Ajit Singh. Total members grew by 36% to 301,279 in 2017, from 221,235 in 2016.

Total asset under management (AUM) of the 56 existing PRS funds rose by 47% to close the year at RM2.23bil, from RM1.51bil in the year before.

“The youth segment accounted for 7% of total PRS memberships in 2013, but the figure increased significantly to 28% as at Dec 2017,” a statement said.

“Building the foundations for financial wellbeing means having control over one’s finances and having a safety net, in order to have financial freedom. When young people understand how to manage money, they are equipped with a skill that is key to achieving their aspirations,” Ranjit said in the statement.

The statement also said that the PRS Online, which is an online platform that allows direct subscription for PRS schemes through the PPA website (www.ppa.my), was also launched.

“New PRS subscribers aged 30 years and below will enjoy zero sales charges with selected PRS providers when they sign up via PPA Online,” the statement said.

Ranjit said the move was aimed at encour- aging young investors to start saving, even in small amounts from RM100.

PPA also launched a new mobile application for members to manage their PRS accounts,” it said.

The SC and the Youth and Sports ministry also announced a new collaboration under the National Transformation 2050 (TN50), called “TN50 PRS Youth Incentive” to encourage Malaysian youths to save and invest for the future.