Thought that this is pretty common in Bolehland ?

KWSP should cap interest to only the first RMxxx. Say the capping is at RM1mil. Meaning, amounts above RM1mil kept in EPF should be subject to no returns (i.e. must be returned back to unitholders). Or alternatively, provide board rate interest rates for those sums.

I think I didn't make myself clear. Current system is good enough.

BUT, if they want to penalize the whales, I personally feel it is better if they do a single cut-off, vs a progressive returns regime. The latter to me is just super unfair.

Possible like cpf?
Roll the money to another fund that capped at certain amount to enjoy higher % return.

The fact remains that more than 80% of EPF members who retires at the age of 55 spent all of their savings within the first 3 to 5 years. Some used it to clear their home mortgage, some used it to fund their children's education, some mismanaged their fund due to majority who has little to no experience at all in managing a large amount of fund. All I am saying is EPF should conduct further study and come up with a tailored made schemes as options for individuals with different amount of savings and commitments. Finance management, consultation and even courses should be made available and mandatory to each individuals who has attained retirement age.

A mutual agreement must be formed on a scheduled retirement expenditure based on their life style and savings, ensuring retirees will see their EPF coffer last for the next 20 years after their retirement as to avoid any untoward event. These agreement can be revisited for an update on various occasions related to emergencies, health related issue, fluctuating inflation rate and etc from time to time or a fixed intervals of between 2 and 3 years.

This is unfair comment. In a study Maslow pyramid, physiological need which at the very bottom category of need, people need to able to survive and feed themselves with food first. Survival is of primary instinct.

With low wages, rising food prices due inflation whatever amount they earn goes to food thus lack of extra savings that put money to work.

Your financial courses certainly may not suitable to the B40 category and doubt whether they have the money to paid or attend for such courses

I think EPF should have higher return as they have more exposure foreign equities if those do well

The EPF recorded a total investment income of RM34.05 billion for the first half of the year ended June 30, 2021 (1H21), which was an increase of RM6.79 billion, or 25%, compared to RM27.26 billion in 1H20.

A very good summary. also what I understands as well.

CPF is only allowed to buy SG govies. Essentially the workers in SG are seeding the government of SG

but those days are low inflation, no debt economy....
10 sen can buy drink, and food.

toyota only costs 2000

Perhaps he meant down payment? Give 2k can drive out to road already?

If it can surpassed last year 5.2 and match 2019 and more? Aiming for 5.5%, it's 1st half income at 34 billion. If the 2nd half performance is the same, that means 68 billion of gross income. 52 or 53 billion could be use for dividend payment.

https://www.kwsp.gov.my/-/epf-records-rm34....ome-for-1h-2021

I think it's equally important for the government to safeguard the value of Ringgit as any savings from EPF will be useless if Ringgit depreciates in value 30 years from now.

Moreover, it is impossible to safeguard the currency when underlying issues are never dealt with. Tbh EPF needs to have a strategy on rationalising staff (as does civil service, restructure their pensions as well) with digitalistion I see that they have disposed many prime office locations, what will the people behind the counter be doing. Upskilling is such a big issues here. Instead there is this idea that we can reallocate dividends to continue to sustain an unsustainable structure in our interdependent globalised economy. You can’t prop up a currency forever if no one believes in the economy.

Rant done. ✔️

Very sad, guys, where can we hedge with dollars/sgd. Other then we go to forex exchange, get the currency and stick under our pillows or keep stacks of dollars cash in condo like Najib but it isn't growing. A waste if money didn't put to work. I know one is buying US stocks or indexes, or SG reits or others like that but we get taxed for it. Unless we migrate else stuck in Ringgit world. Any good way or ideas guys.

Since I wanted to satisfy my curiosity, and recalled that I had this ASM2 Wawasan (previously known as ASW2020) fund when it first launch all the years back, so I did a little calculation, and added EPF number for comparison.


For the past 25 years, ASW2020 would return 6.8% CAGR, while EPF return 5.7% CAGR, assuming 2021 dividend remain as 5.2% (a decent conservative assumption).

Hence ASW2020 would beat EPF by 1% CAGR for 25 years, which is quite a big deal.

However I would imagine most people had more money in EPF as most salaryman would have not much choice but to save & compound money there, while ASW or any PNB fund can be withdrawn anytime, hence can always empty out quite easily...

ASB dividend had always done better than ASW2020 traditionally... hence the "ASB return higher than EPF" mindset is there after all the years of conditioning.. guess I just never thought of it that way and was surprise that the headline chose to state the obvious.

Anyone directly gambling invested in KLSE and dunno how to navigate, would be leave with a meagre return of 0.87% return (KLCI 1237 to KLCI 1538) after 25 years, with a perhaps 2% of dividend, giving a wild guess estimated 2.87% CAGR return.
Q: Where would you put some surplus cash into going forward?
a. PNB Fixed Price fund - good luck for some getting some units..
b. EPF - RM60k a year limit self contribution.
c. Others

"Past performance is no guarantee of future results"

Obviously, EPF could have given us even more dividends.

I bet their CEO's annual salary has lots of zero.

Well, the information is disclosed in the annual report albeit not as detailed and specific as you might want it to be. The 2020 annual report was just released, see if for yourself
https://www.kwsp.gov.my/annualreport2020/pdf/[ENG]KWSP_AR2020.pdf

On page 40, it says CEO and Deputy CEOs earned RM9,027,542.51. Since there's no DCEO listed in the report, perhaps can assume that's the amount that the CEO earned.

How does it compare to the other PLC CEO remuneration you may ask? The Edge has just the answer for you
https://www.theedgemarkets.com/article/cove...-take-home-2020



Interesting Amir Hamzah, the new CEO was earning significantly less as the CEO of TNB previously

What we dont see we dont know.  Maybe there is something else in his overall package?

Annual Dividend of 2021 is declared based on the profit gained in the working year of 2021.

That's a good one.