EPF also reveals that more Malaysians renounced their citizenship last year, compared to 2014.
PETALING JAYA: Malaysians stand to lose up to RM25,000 in retirement funds if they opt for their Employees Provident Fund (EPF) contribution rates to be reduced to only eight per cent.
EPF chief executive officer Shahril Ridza Ridzuan revealed this today after announcing last year’s EPF dividends to the media.
“It’s the choice of individual members. It is very hard for us to generalise and talk about the needs of one member, as if everyone is the same.
“The great thing is that it’s voluntary. There are those who would benefit by having more cash in their pockets.”
This follows the government’s recent announcement that employees could opt to reduce their previous EPF contribution rate of 11 per cent to eight percent.
“We always advise our members to keep their money invested as long as possible, due to the compounding dividend effect,” Shahril said, adding that he expected about half of EPF contributors to keep contributing 11 per cent.
“We always advise our members to keep their money invested as long as possible, due to the compounding dividend effect,” Shahril said, adding that he expected about half of EPF contributors to keep contributing 11 per cent.
He also said that more Malaysians were renouncing their citizenship, based on EPF principal withdrawal figures.
“For 2014, there were 1,787 withdrawals for leaving the country, involving RM99 million in principal. There was an increase in withdrawals in 2015 to 2,206 people involving RM134.6 million,” Shahril said.
“There was a slight increase (of 23 per cent), but nothing particularly drastic.”
He also revealed that EPF’s investment income grew to RM5,158 million in 2015, an increase of 13 per cent from the previous year.
-FMT NEWS-
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