Private Retirement Scheme (PRS) contributors can now withdraw a maximum of RM1,500 tax-free from their Account B for Covid-19 relief.
On 26 March 2020, Malaysia’s Prime Minister announced Private Retirement Scheme (PRS) pre-retirement withdrawals when unveiling the Prihatin Rakyat Economic Stimulus Package.
With this announcement, members below age 55 are able to withdrawal their PRS Sub-account B for amounts up to RM1,500 per PRS Provider.
Contents
Terms & Conditions:
- Period for 8% Tax Penalty Exemption for PRS Sub-Account B Pre-Retirement Withdrawal is from 30 April 2020 until 31 December 2020.
- Eligible for members below 55 years old. No limitation for members above 55 years old to withdraw their PRS investment.
- Members can withdraw their PRS sub-account B up to RM1,500 per PRS Provider.
- Only ONE pre-retirement withdrawal is allowed per PRS Provider.
- This withdrawal is only applicable for members who have enrolled for one year or more; members enrolled for less than one year are not eligible for this withdrawal application.
Example of PRS Withdrawal
| Withdrawal Application | PRS Provider | Tax Exemption |
|---|---|---|
| Application for RM750 withdrawal on 1 May | PRS Provider A | Yes |
| Application for RM750 withdrawal on 1 Jun | PRS Provider A | No: 2nd application will be subject to 8% tax |
| Application for RM1500 withdrawal on 1 May | PRS Provider B | Yes |
| Application for RM2000 withdrawal on 1 May | PRS Provider C | Partial: RM500 (amount above RM1500) will be subject to 8% tax |
- Members may withdraw from one or more PRS funds managed by the same PRS Provider, up to a maximum of RM1,500 from sub-account B with exemption from the 8% tax penalty.
- Members who wish to withdraw from multiple PRS Providers are required to complete the respective PRS Providers’ withdrawal application form.
- Payment will be credited by respective PRS Provider to member’s provided bank account, within 10 business days from the transaction date.
- Documents required are PRS Provider’s Transaction Form/ Withdrawal Form, a copy of member’s NRIC, and copy of member’s bank statement.
PRS Performance
(As of April 30, 2020)
| Fund Name | Risk Rating | YTD % | 1W % | 1M % | 3M % | 6M % | 1Y % | 2Y % | 3Y % | 5Y % |
|---|---|---|---|---|---|---|---|---|---|---|
| AIA PAM - Conservative Fund | 4 | -0.52 | 0.31 | 2.54 | -1.11 | 0.18 | 2.37 | 2.39 | 2.44 | 2.89 |
| AIA PAM - Growth Fund | 8 | -5.2 | 0.83 | 4.67 | -5.06 | -3.39 | -3.39 | -3 | -0.98 | 1.32 |
| AIA PAM - Islamic Moderate Fund | 5 | -2.94 | 0.39 | 3.9 | -2.86 | -2.2 | -0.02 | -1.71 | -2.15 | 0.09 |
| AIA PAM - Moderate Fund | 6 | -4.29 | 0.73 | 4.54 | -4.2 | -2.95 | -2.33 | -1.79 | -0.28 | 1.6 |
| Affin Hwang AIIMAN PRS Shariah Growth Fund | 8 | -5.11 | -0.04 | 5.97 | -5.49 | -2.37 | -3.81 | -2.18 | -0.1 | 0.87 |
| Affin Hwang AIIMAN PRS Shariah Moderate Fund | 6 | -1.82 | -0.08 | 5.37 | -2.26 | 1.51 | 1.31 | 1 | 1.7 | - |
| Affin Hwang PRS Conservative Fund | 4 | -0.59 | 0.24 | 2.81 | -1.61 | 0.1 | 1.33 | 2.87 | 2.88 | 3.23 |
| Affin Hwang PRS Growth Fund Recommended Fund | 8 | -3.2 | -0.23 | 7.37 | -3.62 | -0.12 | 0.62 | 1.3 | 2.28 | 3.62 |
| Affin Hwang PRS Moderate Fund Recommended Fund | 6 | -3.99 | -0.42 | 6.23 | -4.18 | -1.41 | -0.01 | 1.21 | 2.52 | 3.83 |
| AmPRS - Asia Pacific REITs - Class D | 10 | -12.91 | 1.83 | 5.76 | -13.31 | -17.58 | -11.11 | 2.03 | 0.51 | 4.55 |
| AmPRS - Conservative Fund - Class D | 4 | -0.3 | 0.38 | 1.78 | -0.74 | 0.34 | 3.62 | 3.64 | 4.25 | 4.6 |
| AmPRS - Dynamic Sukuk Fund - Class D | 4 | 2.34 | 0.35 | 3.82 | 0.52 | 2.68 | 7.62 | 7.43 | 6.05 | 5.3 |
| AmPRS - Growth Fund - Class D | 8 | -6.91 | 0.87 | 3.88 | -6.97 | -6.71 | -4.55 | -2.41 | 1.9 | 2.41 |
| AmPRS - Islamic Balanced Fund - Class D | 6 | -2.5 | 1.61 | 6.29 | -3.23 | -1.68 | 3.39 | 3.58 | 3.23 | 2.83 |
| AmPRS - Islamic Equity Fund - Class D | 8 | -5.87 | 2.37 | 8.29 | -6.21 | -4.69 | -1.03 | -1.45 | 1.26 | 2.78 |
| AmPRS - Islamic Fixed Income Fund - Class D | 4 | -4.69 | -0.06 | 0.6 | -4.19 | -7.69 | -8.23 | -2.86 | -0.96 | 0.74 |
| AmPRS - Moderate Fund - Class D | 6 | -5.83 | 0.77 | 3.87 | -6.14 | -5.59 | -3.25 | -0.98 | 1.9 | 1.57 |
| AmPRS - Tactical Bond Fund - Class D | 4 | 0.24 | 0.17 | 1.84 | -1.42 | 0.81 | 6.04 | 6.63 | 4.99 | 6.54 |
| Kenanga OnePRS Conservative Fund Recommended Fund | 4 | -2.02 | 0.14 | 2.69 | -2.48 | -1.11 | 1.04 | 1.8 | 2.01 | 3.04 |
| Kenanga OnePRS Growth Fund | 8 | -11.73 | 0.14 | 6.14 | -12.83 | -9.79 | -6.62 | -5.19 | -3.39 | 1.1 |
| Kenanga OnePRS Moderate Fund | 5 | -7.41 | 0.09 | 5.41 | -8.28 | -5.89 | -4.94 | -3.08 | -1.64 | 1.54 |
| Kenanga OnePRS Shariah Equity Fund | 8 | -12.66 | 0.04 | 6.55 | -12.2 | -11.44 | -7.26 | -3.61 | -2.43 | -0.47 |
| Kenanga Shariah OnePRS Conservative Fund | 4 | -1.36 | 0.19 | 2.31 | -1.78 | -0.74 | 1.61 | 1.96 | 1.67 | - |
| Kenanga Shariah OnePRS Growth Fund | 8 | -8.49 | 0.12 | 5.14 | -8.37 | -7.48 | -3.87 | -1.46 | -0.86 | - |
| Kenanga Shariah OnePRS Moderate Fund | 5 | -6.86 | 0.14 | 4.64 | -6.86 | -5.92 | -2.5 | -0.58 | -0.27 | - |
| Manulife PRS - Conservative Fund - Class A | 4 | 1.06 | 0.32 | 1.61 | 0.73 | 1.55 | 3.67 | 3.25 | 2.33 | 2.43 |
| Manulife PRS - Growth Fund - Class A | 8 | -8.5 | 0.3 | 4.83 | -10.14 | -6.68 | -8.6 | -5.83 | -4.54 | -1.2 |
| Manulife PRS - Moderate Fund - Class A | 5 | -6.48 | 0.47 | 4.81 | -8.13 | -4.87 | -6.02 | -4.03 | -3.08 | -0.56 |
| Manulife Shariah PRS - Conservative Fund - Class A | 4 | 1.23 | 0.32 | 1.62 | 0.82 | 1.7 | 4.29 | 3.19 | 2.53 | 2.23 |
| Manulife Shariah PRS - Growth Fund - Class A | 8 | -8.3 | 0.24 | 5.55 | -10.4 | -6.32 | -6.54 | -3.97 | -3.17 | -0.44 |
| Manulife Shariah PRS - Moderate Fund - Class A | 5 | -7.15 | 0.23 | 5.71 | -8.97 | -5.37 | -5.05 | -3.06 | -2.25 | -0.09 |
| Principal Islamic PRS Plus Asia Pacific Ex Japan Equity - Class A | 8 | -4.21 | 2.13 | 8.39 | -4.23 | 0.36 | 0.47 | -1.12 | 2.58 | 3.7 |
| Principal Islamic PRS Plus Asia Pacific Ex Japan Equity - Class C | 8 | -4.21 | 2.13 | 8.39 | -4.23 | 0.36 | 0.47 | -1.12 | 2.58 | 3.7 |
| Principal Islamic PRS Plus Conservative - Class A | 4 | -1.2 | 0.22 | 1.9 | -1.46 | -0.38 | 3.09 | 3.22 | 3.1 | 2.79 |
| Principal Islamic PRS Plus Conservative - Class C | 4 | -1.23 | 0.24 | 1.9 | -1.48 | -0.43 | 3 | 3.15 | 3.06 | 2.77 |
| Principal Islamic PRS Plus Equity - Class A | 8 | -13.88 | -1.77 | 6.36 | -12.67 | -12.14 | -13.04 | -10.4 | -7.64 | -4.95 |
| Principal Islamic PRS Plus Equity - Class C | 8 | -13.87 | -1.75 | 6.36 | -12.65 | -12.14 | -13.02 | -10.39 | -7.64 | -4.95 |
| Principal Islamic PRS Plus Growth - Class A | 8 | -7.82 | 0.65 | 4.38 | -7.11 | -4.87 | -2.62 | 1.12 | 2.25 | 3.02 |
| Principal Islamic PRS Plus Growth - Class C | 8 | -7.87 | 0.65 | 4.36 | -7.14 | -4.94 | -2.74 | 1.04 | 2.19 | 2.99 |
| Principal Islamic PRS Plus Moderate - Class A | 5 | -5.5 | 0.36 | 3.52 | -5.15 | -3.69 | 0.55 | 1.64 | 2.43 | 3.01 |
| Principal Islamic PRS Plus Moderate - Class C | 5 | -5.53 | 0.36 | 3.52 | -5.18 | -3.75 | 0.43 | 1.57 | 2.37 | 2.97 |
| Principal PRS Plus Asia Pacific Ex Japan Equity - Class A | 8 | -11.34 | 1.81 | 7.62 | -11.17 | -8.89 | -7.88 | -3.46 | 1.99 | 3.69 |
| Principal PRS Plus Asia Pacific Ex Japan Equity - Class C | 8 | -11.35 | 1.8 | 7.62 | -11.17 | -8.89 | -7.89 | -3.46 | 1.99 | 3.69 |
| Principal PRS Plus Asia Pacific Ex Japan Equity - Class X | 8 | -11.34 | 1.81 | 7.62 | -11.16 | -8.88 | -7.88 | -3.46 | 1.98 | 3.69 |
| Principal PRS Plus Conservative - Class A | 4 | -2.19 | 0.19 | 1.67 | -2.29 | -1.49 | 1.42 | 2.67 | 3.02 | 3.12 |
| Principal PRS Plus Conservative - Class C | 4 | -2.22 | 0.19 | 1.65 | -2.33 | -1.54 | 1.33 | 2.59 | 2.97 | 3.08 |
| Principal PRS Plus Equity - Class A | 8 | -18.69 | 0.19 | 4.49 | -16.84 | -16.05 | -15.42 | -9.36 | -5.91 | -2.49 |
| Principal PRS Plus Equity - Class C | 8 | -18.7 | 0.17 | 4.49 | -16.84 | -16.07 | -15.42 | -9.36 | -5.91 | -2.49 |
| Principal PRS Plus Growth - Class A | 8 | -8.65 | 1.04 | 5.29 | -8.41 | -6.51 | -5.35 | -2.51 | 0.93 | 2.49 |
| Principal PRS Plus Growth - Class C | 8 | -8.68 | 1.04 | 5.3 | -8.43 | -6.55 | -5.45 | -2.57 | 0.88 | 2.46 |
| Principal PRS Plus Moderate - Class A | 5 | -4.99 | 1.2 | 4.69 | -5.23 | -3.02 | -2.95 | 1.17 | 2.81 | 3.58 |
| Principal PRS Plus Moderate - Class C | 5 | -5.04 | 1.19 | 4.68 | -5.27 | -3.08 | -3.06 | 1.09 | 2.76 | 3.54 |
| RHB Retirement Series - Conservative Fund | 4 | -0.09 | 0.28 | 3.45 | -0.53 | 0.74 | 3.47 | 2.99 | 1.83 | 2.92 |
| RHB Retirement Series - Growth Fund | 8 | -10.53 | 0.08 | 3.93 | -8.76 | -9.7 | -11.03 | -9.08 | -9.2 | -5.11 |
| RHB Retirement Series - Islamic Balanced Fund | 6 | -5.63 | -0.72 | 3.22 | -6.01 | -5.9 | -9.21 | -5.39 | -7.77 | - |
| RHB Retirement Series - Islamic Equity Fund | 8 | -12.73 | -1.68 | 4.98 | -12.08 | -13.32 | -12.95 | -13.12 | -11.73 | - |
| RHB Retirement Series - Moderate Fund | 5 | -7.62 | 0.33 | 4.16 | -6.52 | -7.64 | -6.96 | -6.79 | -6.91 | -3.84 |
FAQ
Q: What is the maximum withdrawal amount I can make for this temporary relief?
A : Members may request for withdrawal from one or more funds managed by each PRS Provider to a maximum amount of RM1,500 per Provider.
Q: How long would it take for a pre-retirement withdrawal request to be processed?
A: Completed pre-retirement withdrawal request will be processed within 10 days after the PRS Provider receives a completed request.
Q: How many times can withdrawals be made from each PRS Provider?
A: Members may withdraw once from each PRS Provider during the exemption period.
Q: Can I request to withdraw all the amount in sub-account B from one or more PRS Providers?
A: Yes, members may request to withdraw all amounts from sub-account B of more than one PRS Provider. However, for withdrawals above RM1,500 per PRS Provider, the balance will attract an 8% tax penalty.
Q: Must I disclose a reason for withdrawal under this temporary relief?
A: No, there is no requirement for members to make any disclosure on the reasons for the pre-retirement withdrawal.
Overall
While this temporary exemption from payment of the tax penalty is provided in the short run, members are encouraged in the long run to continue to save for their retirement. If your PRS investment is currently showing paper losses due to the market correction, it may not be a good idea to withdraw unless absolutely necessary as you will be realizing your losses upon withdrawal. This scenario is true for most moderate and aggressive PRS funds at time of publication.
You May Also Like
- Which PRS Funds to Invest in 2019/2020
- PRS Investing in Malaysia Infographic
- PRS Insights (Premier)
- Maximizing Your PRS Tax Incentive
Will you opt to withdraw on maintain your PRS Account B investment? Is there any other questions on your PRS withdrawal for Covid-19 relief?
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