KUALA LUMPUR, July 18 2012 (Bernama) - Prime Minister Datuk Seri Najib Tun Razak today launched the establishment of private retirement schemes, a highly significant move as it provides employees and the self-employed with an additional avenue to save for their retirement.
The first set of schemes comprising 24 funds by several private retirement scheme providers was approved by the Securities Commission and will be available for offer to the public from September onwards.
A private retirement scheme (PRS) is a voluntary retirement savings scheme structured by private sector fund providers which are licensed and approved by the Securities Commission.
"PRS offers opportunities for the rakyat. In the case of the individual, the PRS can provide an environment for individuals to build retirement funds for career mobility, while for employers, PRS may be utilized as a tool for retaining and attracting talent," Najib, who is also Finance Minister, said during the launch of the scheme here.
"I would urge employers to consider using the PRS to offer a more attractive remuneration packages in the form of higher contributions to their workers' retirement benefits, whilst giving their workers the freedom to decide on the type of scheme they wish to participate in," he added.
Najib said the development of the private pension industry has the potential to change the face of the retirement landscape in Malaysia by increasing and supplementing coverage on a voluntary basis to all sectors of the labour market, including the self-employed and enabling Malaysians to secure an additional and adequate nest egg when they retire.