Friday April 6, 2012
SC okays eight private retirement scheme providers
PETALING JAYA: The Securities Commission (SC) has approved eight intermediaries as providers of Private Retirement Schemes (PRS).
The SC noted that it was a “significant milestone in the development of a long-term sustainable private retirement industry for Malaysia”.
The eight PRS providers approved are AmInvestment Management Sdn Bhd, American International Assurance Bhd, CIMB-Principal Asset Management Bhd, Hwang Investment Management Bhd, ING Funds Bhd, Manulife Unit Trust Bhd, Public Mutual Bhd and RHB Investment Management Sdn Bhd.
The PRS providers were selected on the basis of their expertise in investment and pension fund management, experience in global pensions management, financial strength, governance structure and proposed business model.
SC had announced last December on the eligibility requirements that listed the expectations and requirements for interested and qualified parties to become PRS providers.
The approved PRS providers are required to make an application to the SC for approval of their proposed PRS scheme, providing options for the public to supplement their retirement savings through additional voluntary long-term contributions within a well-structured and regulated environment.
SC had said that the PRS industry was intended to complement and supplement the existing mandatory schemes of the Employees Provident Fund (EPF).
“The framework can be used by individuals who have disposable income to save as well as employers to make voluntary contributions above the EPF contributions on behalf of their employees,” it said.
In the 2012 Budget, efforts to incentivise participation in PRS had been announced, including giving a personal tax relief of up to RM3,000 for contributions by individuals to the PRS approved by the SC and tax deductions to employers for contributions above the statutory rate of up to 19% of employees’ remuneration.
Additionally, a tax exemption would be given on income received by funds within the PRS schemes.