This is EPF dividend thread, not bank security issues.

Please don't OT too much.

Thank you.

Each asset class has its own merit as well as disadvantage.
If one like asset diversification, then it is a choice. Achieve good gain, congratulation, achieve poorer return, then it is risk taken.
While if one doesn't like, intend to put in EPF, it is also a choice, stay safe, especially when there is big financial crisis time, then the a safer asset like EPF seems a good option.

It is always pointless to argue which is better especially in investment, it is personal preference and risk taken involved is different to start with.

Apple vs orange.

If one really want to start an apple vs orange, then one can start another topic on it preferably in Kopitiam section, mainly because it is endless and fruitless discussion due to apple vs orange nature.
This thread mainly talk about EPF dividend only, please do not OT or hijack into different focus.

Any further posts that OT or intend to OT of this topic will be removed.
Thank you.

There is no tax on EPF dividend from the budget annoucement.

Forumers are advised do not post any wild and unfounded speculation.

Thank you.

This post has been edited by cherroy: Oct 20 2024, 11:15 AM

https://belanjawan.mof.gov.my/pdf/belanjawa...tax-measure.pdf

Appendix 10

The word - individual.


EPF is not individual entity.

Please show where is the statement showed EPF dividend receipt will get taxed.
Or else it is a big misleading statement.

EPF is not an individual shareholders,
Hence the newer tax imposed on dividend above 100K is not applicable.

Edited,
Further add on:
EPF dividend received by individual is not applicable as well.

The word:
The 2% dividend tax is on :
Dividend received by INDIVIDUAL

It has nothing to do with EPF entity received dividend from public listed companies, nor
EPF dividend received by individual.

The Appendix 10 has stated clearly.

In fact the 2% dividend tax issue has no relevant in this EPF dividend thread.

Please do not simply post or speculate without facts.

Thank you.

This post has been edited by cherroy: Oct 20 2024, 03:52 PM

This thread is about EPF dividend issue, please do not drag to far out to foreign worker employment policy etc.

One can always open a new topic to discuss on it.
Mod team don't want forumer click into EPF dividend topic, then found out all talk about foreign workers issues.

Thank you.

Needless to compare bitcoin or whatever asset class vs EPF, it is totally different to start with.

If one is investment savy, and wish to put money in btc or whatever investment, it is a choice.
If one is not investment savy, no clue how to invest or afraid to take risk, and opt for EPF then it is his/her choice.

It is about individual choice, needless to criticize or say which option is fool or not.
As there is no right or wrong.

Thank you.

Fact: There is no tier dividend system at time being nor there is plan in near term how tier system will be.

Please do not make any wild speculation and make any unnecessary accusation and any potential flaming statement.

Thank you.

Please do not drag the topic out of topic discussion especially on "imaginary issue" which is non existence.

Thank you.

The reason is simple.
It is difficult to discuss on a non-existence policy, tax or whatever.
As we do not know what may be the tax rate, rules, term and conditions, threshold, exemption and fine details of it etc.
There are so many variables which is non-existence nor being in the pipeline, how can anyone derive any conclusion is beyond anyone comprehension.

Somemore, it may not be implemented at all, as inheritance tax is not something easy to implement due to potential many loop holes, from family trust fund, insurance, property joint name etc.
We can discuss until cow comes home for hundred pages, it yields nothing in this EPF thread.

If interested on those issues, can create a new topic for it, instead in this EPF topic, which is always welcomed by the forum place.
Mod team just do not want forumer click into EPF thread, then found out pages talking on issues non related to EPF.

Thank you for the cooperation.

A reminder:
Finance section is serious discussion only.
Forumers should post with responsibility and not put up unconfirmed wild speculation.

Current Fact:
The monthly payout is just in the long term proposal.
The framework and details are not confirmed, nor it is a mandatory or not.

The monhtly payout may be similar to what CPF is doing, the main intention is to prevent lump sum withdrawal and splash all (or being scammed into get rick quick scheme which is become more serious common) within short period.
By then risk of retirement later on, which could be a burden for gov to take care of old folks without job without retirement money, this is the main intention of CFP monthly payout when being first introduced.
It is never about cashflow problem for pension fund.

Also for those forumers always intend to post and link to political stuff, please post at kopitiam section instead. Thank you.

For EPF monthly payout.
The main intention is to prevent accumulated fund that saved for past 20-30 years, being emptied in short period time (either spend big after suddenly received big cash windfall or being scammed etc,)
EPF should be used to cater the rest of retirement life like 15-30years later, when one retired and no job, not for lavish spending nor being emptied within short term. Statistically, large percentage of lump sum EPF withdrawal being emptied within year or a few years. It is quite similar to those hitting jackpot, high percentage winners emptied the winning money within short period of time. As a sudden windfall of cash, may prompt to large spending as well.

If retired, no job, no retirement money left, it may be a big burden to the society as well as a country/gov when the number of such retired person grow big. That's why EPF is set up in the first place, which is to cater post retirement life spending.

The monthly payout is not designed in the first place to prevent scam, although it may or may not help, it is not its primary goal.

Whether how monthly payout, optional, or unfair to retired person who are prudent financially, yes, it is debated.
Both have pro and cons, monthly payout has its merit as well as disadvantage.
One can strongly disagree, that's understandable, while monthly payout has its own purpose.

Hope it get clear the intention of monthly payout instead of deviation of EPF topic into being scammed issues.

Based on hard facts statistic, EPF dividend is exactly correlated to the income generated as forumers aka how bond and stock market performed, end of story.

Needless to create conspiracy theory and linked to GE.
Please post at kopitiam section if wish to talk about on those conspiracy GE theory.

Political discussion is not welcomed in finance section so that the topic won't be deviated.
Thank you.