PRS was launched as a long term investment as the government is worried about the majority of retirees who increasingly have very little in their EPF & funds for retirement. Does it make sense to invest in a PRS?

Updated: Sep 24, 2018

What is PRS?

PRS is short for Private Retirement Schemes launched in 2012 as a voluntary long-term investment scheme designed to help individuals accumulate savings for retirement.


PRS Youth Incentive

In 2014, the government will contribute RM500 into the PRS accounts of youths, who have accumulated RM1,000 within a year.

In 2017, the incentive has been increased to RM1,000 for those who contribute at least RM1,000 in a single PRS fund from 2017-2018.

The incentive is paid into a specific PRS-GOV sub-account A.

Applicable only for Malaysian youth aged between 20-30 years old (based on birth date as long as you haven’t turned 31) with min RM1000 contribution to approved PRS.

The youth incentive is applicable once only anytime from 2014-2018.

This means that if you have received the RM500 PRS incentive previously, you will not be eligible for the new improved RM1,000 youth incentive. 🙁

More info on PRS Youth Incentive


RM3000 Tax Relief

As long as you pay individual taxes, there is a tax relief of up to RM3,000 a year for investing in a PRS.

Currently approved for 10 years from 2012 – 2021.



As it is a retirement scheme, restrictions are put into place for withdrawal.

You can only withdraw under the following circumstances.

  • After the day the member reaches the retirement age, withdrawals may be made in part or in full;
  • Following the death of a member, only full withdrawals may be made;
  • Prior to the member reaching the retirement age, withdrawals from sub-account B may be made in part or in full;
  • Permanent departure of a member from Malaysia, only full withdrawals may be made.


  • Sub-AC A: 70% (only withdrawal upon retirement)
  • Sub-AC B: 30% (withdrawal with 8% tax max 1x p.a. if before retirement age)


Investing in PRS

There are a number of PRS providers available and you can purchase at a lower cost through a discounted brokerage.

Funds are divided (by government directive) to conservative, moderate & growth – with supposedly conservative being the lowest risk & growth the highest risk.

Sales charges depends on the provider selling (as low as 0% sales charge). There are however annual management charges (~1-1.5%) & trustee fees (~0.01-0.05%) which are hidden as directly factored into the pricing.


Should I invest in PRS?

If you qualify for the youth incentive, incentive investing is a great idea as technically you would be getting RM1,000 (100%) on a RM1000 investment. Additional due to compounding, this would net you an final 30-50% higher returns compared to without the incentive.

However, if you do not qualify for the PRS youth incentive, you may want to look around for other investment alternatives as if your funds are going to be tied up, you should be getting superior and/or guaranteed returns (which is not the case with PRS).

The RM3,000 tax relief is good to have if you are at a high tax bracket although you do not actually realise the entire tax savings at the highest tax rate as our taxation system is on a tiered progressive rate.


Application Process
1. Open an account with PPA
2. Open an account with the specific company offering the PRS


More Info


Which PRS should I invest in?

Read the following articles on returns:


Q: Can I switch an existing PRS to a different PRS provider?
Yes you can switch between from one PRS provider to another.

  • Transferee Provider Fee: RM0
  • Transferor Provider Fee: RM25-75
  • PPA Fee: RM25
  • Minimum Transfer: RM100
  • Minimum 1 year after subscription start date
  • 1 transfer once a calendar year for each PRS Provider


Q: Can I switch an PRS fund within the same provider?
Yes. There is no transfer fee.


Q: I have read through the info in your web-page & on the PRS provider’s page. It does not mentioned the annual return. And it seems that it works similar with KWSP. Can you clarify on it?
A: A PRS is similar to EPF (KWSP) funds in that it is meant for retirement & the EPF investment is a form of unit trust.

However, EPF is a government/public fund while a PRS is private. PRS qualifies for the PRS youth incentive while EPF doesn’t.

Also you can withdraw PRS investments earlier (with a penalty) while for EPF you will in most cases need to reach age 55.


Q: How can I check my PRS account balances?
A: You can check your account balances including incentives via your PRS provider or via the PPA PRSmember website.


Q: When is the Youth Incentive given?
A: Payment will be made on a bi-annual basis and PPA will notify the members once the incentive payout is made into the members’ qualified PRS Fund.

28 thoughts on “PRS

  • January 18, 2016 at 10:40 am

    I have invested RM 3000 from Aug 2015 to Dec 2015. I’m 29 yrs old back in year 2015.

    Would like to clarify as when the RM 500 incentive will be credited into my PPA account?

    Thank you.

    Hi Lau, There does not appear to be a specific timeline given. However, most have received the amount credited directly into the PRS account within 6mths. It will be under a separate category labeled PRS GOV.

  • August 17, 2016 at 2:32 pm

    how do we register a PPA account?

    Hi Jansun, There is a form & RM10 account opening fee to be submitted which will is provided by your PRS provider when you start your first PRS investment.

    • August 19, 2016 at 4:50 pm

      Hi, Thank you for your reply.
      so if i would like to invest through fsm, do I just register the account with them? Or i need to open an account elsewhere before invest with them.
      Any guide to register PPA account?

      Thank you.

      Most welcome. You can register via fsm for the fsm account opening, UT provider account opening & PPA account opening.

  • December 14, 2016 at 9:48 am

    I am 34, is the Maybank PRS will entitle me to have the RM3k tax relief as well? Just to know if Maybank PRS is approved.

    Hi Emmanuel, Do you have the name of the Maybank PRS scheme? If it’s a Private Retirement Scheme or Private Pension Scheme, it qualifies for the RM3k tax relief.

    List of PRS providers

  • January 4, 2017 at 4:37 pm

    I am currently 30, but will be 31 this year in September 17. Do I still eligible for the incentive now as at January 17?

    Hi Ayunni, Yes as long as you complete the transactions before your birthday. I would suggest to do it earlier rather than too close to your birthday.

  • January 7, 2017 at 10:56 am

    Hello, how do i register for this PRS & at what bank it usually use?

    Hello Umar, You will need to register for this at an approved PRS provider.

    PRS Providers

  • January 19, 2017 at 11:48 am

    I have subscribed PRS since 2014 and i have received the RM500 youth incentive.

    Every year i am investing RM 3000 into PRS, and this year i am 29 YO.

    Would like to ask am i still qualify for the RM1000 youth incentive which was announced in 2017 Budget? given that i have received the RM500 incentive. Thanks.

    Hi Kenny. Thanks for the PRS query. PPA has confimred that if you have received the PRS RM500 youth incentive previously, you are unfortunately no longer entitled for the new RM1,000 youth incentive as it is once only from 2014-2018.

  • March 7, 2017 at 3:38 pm

    HI, Isn’t invest RM 1000.00 before 30 years old then the government give RM 1000 incentive?
    Any interest pay for me like EPF?

    HI Anita, yes there’s a one time PRS youth incentive of RM1,000 for RM1,000 for 2017-2018 (as long as you have’t turned 31 & you have not received the incentive prior)

    Can you please further clarify on your query on interest pay?

  • March 28, 2017 at 10:30 am

    hi, it is means to invest Rm1000 in 2017 to get Rm1000 incentive, or invest Rm1000 in 2017 and another Rm1000 in 2018 in order to get the Rm1000 incentive?

    hi kyden, it’s a one time investment of RM1000 anytime from 2017 to 2018 to get the RM1000 incentive.

  • April 3, 2017 at 2:35 am

    If we invest rm1000 but split to two fund, is it entitled to rm1000 incentives?

    Hi ida, It must be in a single PRS fund but you don’t have to put in the entire RM1,000 at one time.

    “Gross contributions reaches RM1,000 during a period of two (2) years from 2017 to 2018 in a single PRS fund of a Provider”

  • May 22, 2017 at 12:45 pm


    May i know how can we get back the RM1000 incentive?


    Hello Soo Zhe Min, Payment will be made on a bi-annual basis at the government’s discretion and PPA will notify the members once the incentive payout is made into the members’ qualified PRS Fund.

  • May 24, 2017 at 2:41 pm

    Hi there,

    Assuming I’m eligible for PRS Youth Incentive
    Few questions:
    1. Can I invest PRS in more than one provider at the same time? Let’s say RM1k investment in AIA and RM1k investment in CIMB. Total investment RM2k but different providers.
    2. If it is possible to invest PRS in more than one provider, how much is the total of PRS youth incentive? RM1k or RM2k?

    Thanks for answering. 🙂

    Hi there,

    1. Yes you can invest in as many PRS and as frequently as you desire.

    2. The PRS youth incentive is a one time incentive of RM1k only, unfortunately.

    You’re welcome 🙂

  • June 21, 2017 at 10:57 am

    Since there is a sales charge, if I invest RM1,000 into a PRS, after sales charge, less than RM1,000 goes into the PRS. e.g. if sales charge is 1%, then only RM990 goes into the PRS.

    So, will I still get the incentive?

    Thank you.

    Hi David, Yes you will still get the incentive. The RM1,000 for youth PRS incentive includes the sales charge & PPA account opening fee.

  • October 12, 2017 at 10:40 am

    Hi – I am an expat working in Malaysia for long term basis. Am I eligible to invest in PRS?

    Hi Suraj, Yes you can invest in PRS.

  • October 17, 2017 at 8:51 am

    Great Eastern’s PRS is eligible to have the subsidy of RM1,000(PRS Youth Incentive) entitlement?

    Hi Ralf, Great Eastern offers an annuity which qualifies for the PRS/Annuity 3k tax relief. Unfortunately, it is not a PRS so it doesn’t qualify for the PRS Youth Incentive.

  • October 27, 2017 at 8:29 pm

    Hi, would like to know can I invest 3000 for this year and only 1000 for next year? Is it have to contribute same amount in every year ? Will i entitle the 1000 incentive?

    Hi Joanne, You can invest any amount you like any year (or nothing at all) in PRS. What you need to look out for is the incentives (which may change over time). For example, there’s the 1000 one-time only youth incentive & the 3000 tax relief which refreshes every year until 2021.

  • October 30, 2017 at 9:29 pm

    hi, I’m Kavi. I’m 34 now. If I open up a PRS account now , am I eligible for tax relieve for year 2017.

    Hi Kavi, yes you are entitled. The tax relief is not limited by age.

  • November 18, 2017 at 1:02 am

    Since, the PRS is like unit trust invetstment. If i invest in Public mutual and the return of of unit are not good, can i sell the unit and reinvest on the unit a doing good?

    How it works. For PRS have any sperate investment units?

    Hi Siva, PRS shares many similarities with UT but it does have differences. For example, you can only switch from a PRS Fund to another PRS Fund. If you close a PRS Fund early before retirement, there are some penalties. A PRS Fund is also separately held in its own PRS category apart from your cash/EPF UT holdings.

  • December 16, 2017 at 6:16 pm

    Is this tax relief is part of EPF/life insurance tax relief? Thanks

    Hi Eng, it’s a separate category for PRE itself.

  • December 19, 2017 at 4:40 pm

    I just create an account opening at affin 18 Dec, how long is the procedure? am I entitle for tax relief 2017?

    Hi Pi Wen, it can normally can be completed within a week. As long as the PRS investment is made by Dec 31, 2017 you should be entitled. You can check with Affin to confirm.

  • December 22, 2017 at 11:35 am

    to enjoy the tax relief of 3k, i would need to invest 3k every year?

    Hi Ryan, Yes that’s right.

  • March 29, 2018 at 12:17 pm

    Hi, I had registered PRS in AIA yesterday. I would like to know that :-

    1. there is a one time incentive – RM1000?
    2. If i want to enjoy the 3k tax relieft, i should invest a RM3k every year into PRS ?
    3. How much for the interest pay or no?
    4. Any issue occur if i have no invest into PRS every year?

    Thank you

    Hi Race,
    1. Yes if you qualify for the youth incentive below age 30.
    2. Yes as long as the tax incentive is given.
    3. Sorry can you clarify your question?
    4. No issues. It’s totaly optional.

    • August 12, 2018 at 5:48 pm

      For question no. 3,i think he meant if there is like a dividen return rate like EPF

      Hi lemon, the returns/dividends are given (if any declared) depending on the individual PRS fund performance. We can help you select the best PRS Fund from all the funds available in Malaysia to match needs, suitability, returns expectation, returns stability, etc.

  • April 30, 2018 at 9:58 pm

    Hi, I’ve been trying PRS since 2014 with 2 providers and 3 funds but seems like all the performance are poor. In fact, worse than bank’s FD. What puzzled me is, the funds are managed by professionals, with long term tenure, How could it be that bad? Does it just happens to me Or is there any PRS fund that could consistently have better return than FD?

    Hi SS Liew, PRS funds performance are very much dependent on the fund managers. We have found PRS for the tax relief + returns can work out reasonably well. Can check out this article and working with a MyPF advisor to help you make better fund selection decisions.

    • May 4, 2018 at 5:22 pm

      Thanks for the guides. I had a quick look and noticed that AIA PAM Moderated was rated 5.0. I had invested in this fund since 2016 but as mentioned, the nett return up to date is still much lower than bank’s FD.

      Most welcome SS Liew. The AIA PAM Moderates has good consistency and preservation ratings. Unfortunately it does not rank well in returns. If you’re after returns, you may want to look at other PRS funds.

  • June 2, 2018 at 5:47 pm

    Hi. I’m 55 years old and would like to buy PRS funds. Would it be possible? Can I enjoy the tax relief of RM 3000?

    Hi Alvin. Yes it’s possible and you will still enjoy the tax relief.

  • June 4, 2018 at 2:07 pm

    1. this year 2018, i am 28 y/o. if i invest 3k, i got tax relief 3k. but the incentive still 1k only right?

    Yes tax relief 3k and youth incentive 1k

    2. now ady June, bi-annual incentive payment still available for now? or i only entitled for 2nd half payment?

    It’s the full 1k PRS youth incentive.

    3. youth incentive entitled until Dec 2018, tax relief up to max 3k every year (any age) until Dec 2021, right?

    Yes. Will see if the PRS tax relief is extended in the future.


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