If you’re working then you would have an EPF account and this is definitely something that you need to know as
EPF Fund Expect to Hit RM1 Trillion Soon and This is What Will Happen To Us The Account Holders?
Now the EPF looks like the fund could be hitting a big number in the very near future!
According to The Star, the EPF’s Deputy Chief Executive Officer (CEE) (Strategy) and the upcoming CEO, Tunku Alizakri Alias, announced that the fund expects its assets under management (AUM) to reach RM1 trillion in the next two to five years. OMG!! We only thought our debt reached 1 trillion but never thought EPF is also almost there.
Now at this moment, The EPF’s AUM reportedly reached RM814.38 billion as of March 31st 2018. Tunku Alizakri noted that the prediction of hitting RM1 trillion is just a matter of time where it will come based on the fund’s market performance, contribution growth, and the introduction of new schemes for existing contributors.
Tunku Alizakri has also explained that since the retirement fund is expected to hit its highest milestone yet, he added that they could consider exploring the “social good” of the fund. He was quoted by The Edge Markets as saying,
Now our biggest question is what does this mean for us as an account holders, if EPF chooses to put some of their funds into social causes?
Well, it could result in lower dividends being paid out, however, this is just in theory, as the deputy CEO pointed out.
He also also say . that “EPF exists as a fund to provide retirement benefits for its members. Risk return profiles have to be very specific. [We have to look at] which provides the most stable returns, which would be the infrastructure investments.”
He added that EPF is also pushing for a national social welfare blueprint and a coordinating body to help organise social welfare schemes and institutions across Malaysia.
But all this has not been concrete yet and there still pretty long way to go. So what do you think of this change of direction will impact us? Let us know on the comments.