PUTRAJAYA, Nov 23 — The Employees Provident Fund’s Shariah savings assets will be completely separated from conventional savings assets, effective January 1, 2024.
The move is expected to generate a better dividend return under its Shariah contribution scheme or at least equivalent to EPF’s contributions under the conventional scheme, said Deputy Finance Minister Datuk Seri Ahmad Maslan.
Speaking at a press conference after officiating at the Finance Ministry and its Agencies’ Joint Integrity Day 2023 today, he said the 2022 dividend under the conventional scheme is 5.35 per cent versus the 4.75 per cent under the Shariah scheme.
This trend has persisted for several years, with its dividend rate never surpassing the conventional one.
EPF offers private sector employees the option to contribute savings under its Shariah or conventional schemes.
“The separation (of the two) will give (contributions under) the Shariah scheme the freedom (to invest), so there is a possibility the (dividend rate), if not exceeding the conventional scheme, will at least be equivalent to it,” Ahmad said.
EPF chief executive officer Datuk Seri Amir Hamzah Azizan said that about 40 per cent of the RM1.1 trillion assets under its management are Shariah assets.
“When we break down the two schemes, we can differentiate the savings and investments made. Therefore, (contributions) under the Shariah scheme are free to choose where they want to put the savings and where they can get a higher return to reduce the (dividend rate) gap between the conventional and Shariah schemes.
“But the returns depend on the performance of our (invested) assets. We put in the effort to separate (the two forms of contributions) first and see how we can reduce the gap,” he said.
Meanwhile, Ahmad said the Finance Ministry (MoF) will study every criticism and leakage reported in the Auditor General’s Report 2022.
“It is closely related to integrity, like the abuse of power and corruption, and if these can be reduced, then many issues can be resolved. So we hope the Auditor General’s warning will (help) speed up and streamline financial matters,” he said.
On the criticisms levelled at the weaknesses in the development management of Langkawi Development Authority’s (Lada) two property projects, Ahmad said the MoF is aware of the issue and hopes the relevant parties would take appropriate action.
In the 2022 AG Report, Lada failed to collect land lease revenue from the St Regis Hotel development project totalling RM3.19 million since 2018, and for land leased under the Tok Senik Village project amounting to RM8.30 million since 2003.
— Bernama
