Malaysia's Employees Provident Fund vs S'pore Cheat People Fund

[Leepotism]

MALAYSIA'S EPF DISTRIBUTES 6.75% DIVIDEND WHILE CPF ONLY GIVES 4% INTEREST

Published by farhan on Mon, 09 Feb 2015 09:23:24 AM

The Malaysian Employees Provident Fund (EPF) will declare a dividend of 6.75% for last year to its 14 million members, sources said.
The payment was the highest since 1999, when the dividend was 6.84%, the source said.

"EPF chief executive officer Datuk Shahril Ridza Ridzuan will make the official announcement tomorrow," the source told The Malaysian Insider.
The source said the EPF board met with stakeholders, including representatives of the government and employers, to convey its decision about the payout.

The Edge Financial Daily reported yesterday that the pension fund expected to sustain its high payout ratio by declaring a higher dividend payout for 2014 compared with 6.35% for 2013 and 6.15% for 2012.

The dividend rate of 6.35% for 2013 was declared on the back of a record gross investment income of RM35 billion, a 12.8% rise from RM31.02 billion in 2012.

On the other hand, even though Temasek Holdings claims to have made an average of 16% profits per annum since its inception, CPF, Singapore's equivalent of the Malaysian EPF has stuck to its 3.5% to 4% interest rates for Singaporeans.

Why is a wealthy nation like Singapore unable to even match the dividends offered by our neighbours Malaysia? Should the CPF switch to a system where dividends are pegged closer to the profits made by our SWF GIC and Temasek Holdings?

What do Singaporeans think?

 

[Leepotism]

AGE 55 YEARS WITHDRAWAL PURPOSE

This withdrawal enables you to withdraw all your EPF savings upon attaining 55 years of age to provide financial support during your retirement period. You can withdraw your savings either in a lump sum or partially. APPLICATION ELIGIBILITY You have reached the age of 55 You still have savings balance in the EPF account Members who are eligible to apply

i) A Malaysian Citizen;
OR(ii) A Malaysian Citizen who has made Leaving the Country Withdrawal before 1 August 1995 and later opted to re-contribute to the EPF;
OR(iii) A Non-Malaysian Citizen who:Has become an EPF member before 1 August 1998;

OR Has obtained a Permanent Resident status (PR).TERMS OF WITHDRAWAL

Upon reaching the age of 55, you are eligible to withdraw your savings according to the following methods
i) A lump sum withdrawal;

OR(ii) A combination withdrawal from either one of or both of the following:Partial withdrawal;

AND/ORMonthly payment combination withdrawal method are as follows

i) Withdrawal of a partial amount of your savings and retain the balance in your EPF account

(ii) Withdrawal of a partial amount of your savings and transfer the balance for monthly payments

(iii) Withdrawal of a partial amount of your savings and transfer a partial amount for monthly payments while maintaining thebalance in your EPF account;

(iv) Transfer your entire savings amount for monthly payments.Members can submit the application within 6 months before the member reaches the age of 55, according to the date of birth.However, payment will be made within 5 working days after reaching the age of 55.

WITHDRAWAL AMOUNT ELIGIBILTYLump Sum Withdrawal

You are eligible to withdraw all of your savings in your EPF account.

If you are still working or have opted to re-contribute to the EPF after you have made your age 55 years withdrawal, the contributions/retirement benefits that you have received cannot be withdrawn within one year.However, if your contributions/retirement benefits have reached the amount of RM2,000.00 before the one year period, you areeligible to withdraw under partial withdrawal.

Partial Withdrawal
You may withdraw a minimum of RM2,000.00 for each withdrawal subject to the maximum withdrawal amount once in every 30days;You are required to submit a fresh withdrawal application every time you wish to make the partial withdrawal.

Monthly Payment Withdrawal
You may choose monthly payments with the minimum amount of RM250.00 per month for a minimum period of 12 months.The minimum amount that can be transferred as monthly payments is RM3,000.00.

You need to determine the total monthly payment amount, the amount per month, the number of months and the payment
commencement month. The EPF will transfer the total withdrawn amount into a special account. Crediting will be made into your bank account every month according to the amount and number of months applied. Payments will be made on the 25th of every month.The number of months for the monthly payments do not go beyond your age of 75 years. You may cancel this withdrawal any time.

 

[Leongsam]

MALAYSIA'S EPF DISTRIBUTES 6.75% DIVIDEND WHILE CPF ONLY GIVES 4% INTEREST

What do Singaporeans think?

If Singaporeans thought that Malaysia was better, hoards of sinkies would be emigrating to Malaysia to live and work instead of the other way round.

The delta in the interest rates is simply a reflection of the state of the two currencies. The Malaysian ringgit pays 3.5% interest compared to SGD's 1%.

To understand how currency interest rates are determined, go to http://www.cmsfx.com/en/forex-educa...al-bank-interest-rates/role-of-central-banks/

 

[syed putra]

If Singaporeans thought that Malaysia was better, hoards of sinkies would be emigrating to Malaysia to live and work instead of the other way round.

Many sinki Malays Cari makan in malaysia. The reverse is true for those of Chinese descent.

 

[Leongsam]

Many sinki Malays Cari makan in malaysia. The reverse is true for those of Chinese descent.

That alone tells you which country is a better place when it comes to making money.

 

[yinyang]

..delta in the interest rates is simply a reflection of the state of the two currencies. The Malaysian ringgit pays 3.5% interest compared to SGD's 1%.

Asides too, the ringgit's depreciation vs sgd is more than telling (see steep slope)

 

[gingerlyn]

Many sinki Malays Cari makan in malaysia. The reverse is true for those of Chinese descent.

please tell me why malay singaporeans are forced to curi makan in malaysia?

 

[Leepotism]

You are eligible to withdraw all of your savings in your EPF account at age 55. No fucking minimum sum and medisave minimum sum.

 

[Leepotism]

TAN KIN LIAN: S'POREANS SHOULD NOT BE FORCED TO KEEP THEIR MONEY IN CPF



Post date:
3 Feb 2015 - 9:05am


CPF Minimum Sum, CPF Life, Medisheld Life share one bad feature. What is it? What is a better approach?
ANSWER:
It is bad to force the members to keep their money in the CPF against their will, or to force them to take up the CPF Life or Medishield Life against their will. The members feel that they are given a poor return.

It is better for the CPF to allow the members to withdraw all of their savings at 55 but give them the option to keep the money in the CPF beyond 55 if they wish to. The CPF can make it attractive for members to keep their money longer, on their own, by offering an interest rate that is better than what they can earn outside on their own.

This is the approach taken by the Malaysia EPF (which is the equivalent of our CPF). The members do not feel that the EPF is giving them a poor deal and is holding back their money to "milk" them.
Tan Kin Lian

 

[winnipegjets]

If Singaporeans thought that Malaysia was better, hoards of sinkies would be emigrating to Malaysia to live and work instead of the other way round.

It is not easy to migrate to Mudland lah.

Mudlanders are in sinkapore to make money because of the higher exchange rate. Not many of them will want to retire here.