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Promises of quick returns cloud judgement of EPF contributors

EPF

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SEREMBAN — Dec. 28, 2017: With the higher cost of living today, promises of quick returns can easily persuade an individual to participate in investment schemes, including scams.

According to Malaysian Academic Association Congress (MAAC) president Prof. Datuk Mohd. Idrus Mohd. Masirin,  the desire to lead a lavish life in the short-term normally leads people to withdraw money from the Employees Provident Fund (EPF).

“Most are convinced with the verbal guarantees by people they know that the investments will succeed and in the event it doesn’t, their money will be returned.

“The lack of knowledge on the resources and risks involved also lead them to make bad choices,” said Idrus.

Idrus suggested that EPF should create a guideline for contributors to identify legitimate investments.

For example, the amount that can be withdrawn can be controlled by EPF based on the type of investment to be made.

“For example, let’s say one wants to invest in ASB (Amanah Saham Bumiputera)…. he or she may withdraw a considerable amount. However if it’s to buy shares, the EPF can control the amount. If an investment looks dubious, the EPF may request for confirmation from the relevant party before allowing a withdrawal,” suggested Idrus. — Bernama

 

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