EPF Simpanan Syariah on track to launch on Jan 1, 2017 w RM100b initial fund size. Applications open 8.8.16
Updated: Jul 20, 2017
EPF Simpanan Syariah (EPF-i)
- Approved after 71% positive respondents to Members Consultation on EPF Scheme Enhancement in April 2015
- Managed according to syariah principles (Akad Wakalah – Syariah economics)
- Fully Syariah compliant companies
- No min profit/dividend guarantee (EPF: min 2.5%)
- No switching back from EPF-i to EPF
- EPF Unit Trust investment withdrawal only to Syariah compliant UT
- Conventional banking not part of EPF-i portfolio
EPF-i Future Plans
- RM25b investments per year
- 45% of overall EPF holdings in EPF-i (55% in EPF)
EPF-i Application
- Application Date: Aug 8-Dec 23, 2017 or until fund size reached; 2018 application open until Dec 24, 2017.
- Fund size: RM100b (15% of EPF total fund size)
- Restrictions: No restrictions on race, religion & nationality to apply
- Must register at EPF counter
- Bring IC / Passport (non-malaysians)
- Submit application & verify thumbprint
- Application status notified by SMS 7 days before effective date (Jan 1, 2017)
EPF-i Applicants Signup
- Aug 9, 2016: 41k signups
- August 12, 2016: 150k signups
- August 15, 2016: 208k signups / RM25.1 b (25.1%)
- January 17, 2017: 635k signups / RM59.0 b (59.0%)
EPF-i Expected Performance
- EPF-i will under perform EPF (conventional) if banking sector performs well (and vice versa) as no exposure to conventional banking (Islamic finances only)
- EPF stated variance between EPF conventional & EPF-i to be ~0.50% (or less)
- EPF-i expected to outperform in troubled and uncertain economic times
FAQ
- Q: Do I need to inform my employer?
No - Q: Any difference to EPF Withdrawals?
No
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