Fund’s assets under management to exceed RM1 bln by year-end

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KUALA LUMPUR: The assets under management (AUM) of the private retirement scheme (PRS), administered by the Private Pension Administrator Malaysia (PPA), is expected to surpass RM1 billion  mark by year-end.

Its chief executive officer, Datuk Steve Ong Chong Gain, said PRS has gained traction since its inception in December 2012 as its AUM has grown over RM800 million with over 140,000 members.

“In slightly more than two years, the public is gaining confident and has better awareness of PRS.

“This is a result of various educational initiatives that we have undertaken to make them consider PRS as alternate pillar to save for their eventual retirement,” he told Bernama after a talk on PRS in conjunction with Malaysia Unit Trust Week 2015 here.

Ong said PPA would continue its promotion and public engagements through seminars and urged people to visit its website www.ppa.my.

“PPA’s website contains information on PRS such as ways to plan on retirement, lists of providers and scheme details,” he said.

Earlier, in his presentation, Ong said PPA’s research showed that to continue to enjoy the lifestyle a saver has become accustomed to, he has to set aside one-third of his monthly income to achieve two-third replacement income.

“With the Employees Provident Fund, most Malaysians have about 23 per cent contributions to retirement fund, hence only need to set aside another ten per cent to make up to 33 per cent or one-third of the savings income.

“The important thing to look at when putting aside the retirement saving is to protect it against inflation,” he said. Ong said PRS was designed for retirement just like EPF where capital was preserved while giving members the inflation-adjusted return.

“PRS is the third pillar of the country’s national pension framework and is a regulated investment activity that is governed by the Capital Market and Services Act 2007 under the purview of Securities Commission Malaysia,” he said. — Bernama