EPF net contributions after withdrawals stands at RM15.23 bln

KUALA LUMPUR: The Employees Provident Fund (EPF) said its total annual contributions stood at RM50.58 billion, exceeding the total annual amount withdrawn of RM35.35 billion, resulting in net inflows of RM15.23 billion as at December 2013.

It said Malaysia’s in its 2013 Annual Report, in its 2013 Annual Report, said that the age 55 withdrawal topped other types of withdrawals at RM13.23 billion, an 8.5 per cent increase from RM12.19 billion recorded in the previous year.

Withdrawal for investments under the EPF Members’ Investment Scheme (EPF-MIS) was second highest at RM7.85 billion.

“Our ultimate objective is for our members to have sufficient savings when they retire.

“To ensure that members get the most out of their retirement savings, the full contribution rates of 11 per cent and 12 per cent have been maintained for ages between 55 and 60 as opposed to half contribution rates prior to 2013,” said chairman Tan Sri Samsudin Osman in the pension fund’s 2013 Annual Report.

Other types of withdrawals that also showed an increase from 2012 were Housing Withdrawal at RM4.95 billion, Age 50 (RM3.84 billion), Education ( RM338.14 million) and Health ( RM43.13 million).

The year also witnessed EPF’s enhanced investment in Information and Communication Technology (ICT) infrastructure and electronic services with the launch of two electronic services,

To ensure that members get the most out of their retirement savings, the full contribution rates of 11 per cent and 12 per cent have been maintained for ages between 55 and 60 as opposed to half contribution rates prior to 2013. Tan Sri Samsudin Osman, EPF chairman

namely e-Caruman and e-Pengeluaran, to make transactions hassle-free for its members and employers.

Samsudin said in keeping pace with the increasingly tech-savvy members the EPF continued to leverage on ICT advancements and had been steadily increasing its online functionalities, which were not only convenient, but cost efficient.

As part of the additional channels for its members, the EPF recently launched its first mobile app, namely ‘EPF i-Akaun’, to allow members to keep track of their EPF savings anytime and anywhere.

“Remaining true to our 2013 Annual Report’s motto of ‘Investing For Your Future’, the EPF is committed to not only safeguarding our members’ savings, but also upholding a high level of operational efficiency to enable us to pass our cost savings to them.

We will continue to invest in IT to further enhance our service delivery,” he said.

During the year, the EPF made credible strides on the investment front, despite the year’s bearish economies and global market conditions.

The EPF’s robust yet prudent investment strategies had allowed it to declare a dividend rate of 6.35 per cent for the financial year ending 31 December 2013, representing the biggest ever dividend payout of RM31.20 billion to its members, up 13.66 per cent over the RM27.45 billion paid in 2012.

The year also saw a 2.48 per cent increase in membership to 13,922,194 from 13,585,007 the previous year, while the number of employers jumped from 502,863 in 2012 to 517,062.

Samsudin said although the EPF recognised that the economic landscape would continue to present new challenges, it was confident its policy of prudent risk management and investment allocation strategies would help to maintain capital preservation while ensuring optimal return over a long-term horizon.

“Over and above our investment successes, the EPF has made tremendous progress in our quest to become a world-class social security organisation and we will continue to strive in our mission to enrich the lives of our members and invest for their future,” he added.

EPF members who wish to read the full version of the Annual Report 2013 can access and download it from myEPF website at www. kwsp.gov.my. — Bernama