KUALA LUMPUR, June 25 — The net asset value of private retirement schemes (PRS) has reached RM100 million with more than 30,000 accounts registered to date, says Securities Commission Malaysia chairman Datuk Ranjit Ajit Singh.
Speaking at a PRS conference here today, he said six months after the first PRS was launched at the end of last year, nine schemes with 33 retirement funds have been launched by seven PRS providers.
SC looks forward to Kenanga Investors Bhd, the newest addition to the existing batch of approved PRS providers, to the roll out of its fund options this year, he said.
Ranjit said there are numerous account holders in every state of Malaysia as well as near equal gender representation with the number of male and female members at 55 per cent and 45 per cent respectively.
“A factor worth pointing out is that participation in PRS from the self-employed segment is now just below 20 per cent,” he said.
Meanwhile, Ranjit said the SC is engaging with the industry to design measures to incentivise participation based on a study of the current demographics and international best practices.
He said the measures reviewed include a proposal for higher tax incentives or a government co-contribution for specific target markets, such as for the younger demographic to joining the PRS.
“Key policy considerations would rest on identifying effective ways to increase coverage and sustain accumulated contributions,” he said.
On the transaction cost, Ranjit said PRS providers must continue to offer competitive fees and demonstrate how their fee structures fit the target market.
To empower investors and to enhance transparency, a user friendly fee comparison table of all the relevant fees and charges is made available on the Private Pension Administrator’s website, he said. – Bernama
