Saw this in The Star (Letter to the editor). I was not aware of the change Goh has raised, i.e., 2.5% for the non syariah EPF fund.

True? Or a miss-interpretation of the amendment?

Thanks.


THE proposed amendment to the EPF Act 1991 tabled at the Dewan Rakyat on Wednesday has come as a shock.
It proposes for EPF to pay a minimum of 2.5% dividend if contributors have not elected for the accounts to be managed according to Syariah principles.
What is the rationale in introducing this amendment?
It would appear to be ill-advised at best and possibly agenda-laden at worst.
As a long-time EPF contributor (over 30 years), I have always assumed and expected EPF to manage our retirement funds in a fair, transparent and efficient manner, which it appears to have done so far.
Is EPF asking us to make an investment decision, which is what the amendment seems to be proposing?
It would appear that the proposal is a way to authorise EPF to penalise or reduce returns from contributors who do not elect for the accounts to be managed according to Syariah principles.
On what principles the funds are managed is EPF’s to consider and hardly one for the depositors to decide.
What we are interested in is that our funds are managed with good stewardship and bring the best returns, so this proposal deserves the suspicion it is drawing.
I am afraid the proposed change does not sit well with me nor, apparently, with many online readers of the news who have overwhelmingly indicated their anger or shock at the proposal.
Please do not divide this country any more than it already is.
Drop this proposal.

The minimum of 2.5% dividend rate has been there for many years, but somehow, some talk it like a new amendment is really puzzling me.

This post has been edited by cherroy: Oct 23 2015, 09:02 AM

2 interpretations on this:

AA
Minimum is 2.5% as in the original clause. So status quo.

BB
Like what Goh said, with non syariah EPF funds, they will give 2.5% only.

My gut feel is AA. But want to confirm and deal with this if it is indeed BB.

Cheerio.

The statement said minimum 2.5%, but not saying cap at 2.5%.
And the 2.5% minimum clause has been exist for many years, did EPF declare only 2.5%?

If really want to fix or cap at 2.5%, the sentence should be maximum 2.5%.

I don't know it is English class problem of something else.

Thanks.

I should have read the proposed amendment first and then decide for myself, instead of echoing what other people reacted to/interpreted it.

Hope it is still AA.

Cheerio.

OMG the 2.5% dividend issue still not settle yet

for god sake, the min 2.5% is already there since donkey years ago.. I don't understand why now only it become such a big issue

Guess is because people interpret that if you don't choose syariah, you will get 2.5%. The drop of 6.x% to 2.5% causes a lot of people to get angry. But like you said, minimum epf can give is 2.5%. That's not the maximum which epf will give. It's the minimum.

anyone who lives long enuf in malaysia can read "within the lines" la when a policy of such is announced. min 2,5%, so you be happy if they declare 5.9% for conventional vs I-KWSP gets 6.2% for no transparent accounting but merely its two seperate sets of payout required.

being penalized for not supporting islamic investment/product.

what's the difference with take ones monie to pay the other fellow.

wealth tranfer la nama-nya

This post has been edited by vincentwmh: Oct 23 2015, 12:43 PM

another thing is the "forced" into choosing Shariah account over conversional one

Bro, they telling you that epf conventional and Islamic pays minimum 2.5%

how u know shariah account would get higher dividend than conventional one

bro, it wld be wise if you can read beyond that "min 2.5%", read further "the objective of such policy" being implemented

Bro if you are worried about transfer of wealth, make the switch. Then if it really happen, they have no excuse not to give you 6.x% since you make the switch. Non Muslim can switch to syariah also. Not limited to Muslim only.

May be someone got crystal ball that we don't have.

The amendment just want to create a syariah compliance account, and investing in Syariah compliance investment. But somehow, all sort of unfounded prediction being made by people who got crystal ball, from give only 2.5% to which is higher or lower.

If the other one is higher, just opt the account to it, as simple as that.

This post has been edited by cherroy: Oct 23 2015, 01:10 PM

you should read even further than that. (not only see the gula-gula in front of you).bro, think of the economy power (of this outcome) of your next generation.

ask yourself, all these funds/monies in I-kwsp, I-fd etc etc etc are invested in where?? hence...

This post has been edited by vincentwmh: Oct 23 2015, 01:45 PM

no cystal ball la.. cool

in blue, thats where the objective "catch" for funds. i read towards the "objective&consequences" not merely the gula-gula (dividen payout)

anyway peace just different views

This post has been edited by vincentwmh: Oct 23 2015, 01:27 PM

Just think of it as donation. Once your money is enough, one can withdraw and dump into overseas account. Take a vacation and open account at the same time.Then come back malaysia TT out the money

Tried here and there looking for the amendment clause(s). Saw The Star article but that was just the reporter's interpretation. Like to have the actual clause(s).

Thanks.

Patience
EPF will publish the changes on its website

all the best to you

i am here to stay!!! burial ground oso here

This post has been edited by vincentwmh: Oct 23 2015, 03:00 PM