Employees Provident Fund which known as EPF, is a retirement savings plan that managed by government. EPF is compulsory in Malaysia and it is contributes by 2 parties which is employees and employers. Employee can choose to contribute 9% or 11% every month; employer is 12% or 13%.
Based on the research and statistics shown in 31 March 2022, the EPF gross investment income of Q1 2022 is RM15.85 billions. EPF gross investment income had fall from RM19.29 billions recorded in Q4 2021 to RM15.85 billion. There was a huge difference of nearly 18% in between Q1 2022 and Q4 2021.
The experts say that there might be 2 reasons that causing EPF record lower gross investment income. The first reason is because EPF has been dragged down by a significant drop in global markets.
The second reason might be due to the last policy that allow RM10,000 withdrawal from EPF. As we known, this policy has result in total withdrawal of RM40.1 billion from EPF.
We hardly to say that this withdrawal is right or wrong. Some may be really need this fund to alive. However, mostly are just use this fund for entertainments.
Lastly, we would like to alerts everyone that we need to take care our country’s economy together! If will be win-win situations if we carefully care on it.
