PETALING JAYA (24 June 2020): Since the announcement by Prime Minister YAB Tan Sri Muhyiddin Yassin on 27 March 2020 allowing pre-retirement withdrawals from Private Retirement Schemes (PRS) without tax penalty, just under 0.5% of the close to half a million PRS Members have applied to exercise this option.
This withdrawal measure is available from 30 April – 31 December 2020, and was introduced by the government as part of its PRIHATIN Economic Stimulus Package to help Malaysians ease their short-term financial burden during this challenging economic environment.
“While this temporary exemption of the tax penalty is provided to meet PRS Members’ needs, the majority of PRS Members have opted to leave their PRS balance untouched,” says Husaini Hussin, CEO of Private Pension Administrator Malaysia (PPA), the central administrator of PRS.
“On the other hand, the number of transactions on PPA’s PRS Online Enrolment service increased by more than three-fold since the Movement Control Order came into force,” Husaini adds. “It is encouraging to see so many Malaysians wanting to start saving for their future.”
The migration towards online platforms for everything has accelerated under this unprecedented circumstances and, in line with this trend, PPA recently launched the “JOM PRS, GET TREATS!” contest so more Malaysians can start saving online for their future and stand to get rewarded with more.
From 15 June – 14 December 2020, first-time savers who deposit a minimum of RM100 in PRS will be in the running to receive more from the Monthly and Grand PRS Treats Draws. It is that simple. This contest is open to Malaysians aged 18 and above who are opening a PRS account for the first time via PPA’s PRS Online Enrolment service.
Each month during the contest period, 20 individuals will be selected through the Monthly PRS Treats Draw to receive a RM100 treat in PRS units. Additionally, all eligible PRS Online enrolees during the contest period will also be automatically entered into the Grand PRS Treats Draw, where the Grand Prize of RM3,000, the Second Prize of RM2,000 and Third Prize of RM1,000 in PRS units are up for grabs.
“Our message is ‘Start Small, Start Now’ because saving for your future does not require a large amount of money – just start with RM100 in PRS,” Husaini explains. “Besides, we also wanted to make sure that anyone who wants to start saving can do so without incurring expensive fees or committing to high minimum savings amounts.”