THE Private Retirement Schemes (PRS) has today exceeded RM5 bil (as of April 11) in total net asset value (NAV) with half a million Malaysians saving for their retirement.
This momentous milestone was achieved as a result of the PRS industry’s steady growth since its inception – an increase of 43% from that of RM3.5 bil as of Dec 31, 2019.
“The continuing maturity of the PRS industry as evidenced by this milestone bodes well for Malaysians seeking additional avenues to accumulate retirement savings,” commented Securities Commission (SC) chairman Datuk Syed Zaid Albar.
“The SC is committed to enhancing the PRS framework, including expanding the breadth and depth of PRS offerings and its related services.
“This includes greater use of technology to widen accessibility of this voluntary scheme and increase its appeal to a younger generation of prospective members.”
The NAV growth of 43% from end-2019 was made possible by the resilient and strong performance of PRS funds despite going through last year’s volatility and witnessing its fair share of market movements over the past nine years.
To further spur the industry, Private Pension Administrator (PPA) Malaysia said it will continue to work closely with the SC, PRS providers and its network of close to 25,000 PRS consultants nationwide to continuously raise awareness about the importance of saving for retirement, especially among the youth segment.
Currently, about 58% of PRS members are aged 40 and below which augurs well for the future retirement security of the country.
“In addition, the extension the RM3,000 yearly tax relief for the scheme until the 2025 announced during Budget 2021 demonstrates continued commitment by the Government and the SC to prioritise retirement well-being for all Malaysians,” noted PPA.
“This move ensures that the rakyat remains incentivised to save for retirement in line with the well-established practice in multiple jurisdictions which provides tax relief for voluntary retirement savings.” – May 4, 2021