New retirement scheme voluntary: SC chief
The new Private Retirement Scheme launched today is a voluntary scheme which intends to supplement what is already available now, says Securities Commission Chairman, Datuk Ranjit Ajit Singh.
The world pension environment today typically provides voluntary schemes as well as mandatory pension schemes like the Employees Provident Fund, he said.
"The private scheme offers people extra investment opportunities and tax benefits as well as an option to diversify investment portfolio," he said at a press conference following the launch of the pension scheme in Kuala Lumpur today.
The private scheme would also enable the participation of some
segments like the self-employed, who do not contribute to any pension schemes.
He said employers should also have the way to be able to look at structuring some contribution by way of remuneration packages that will help in terms of building retirement for their employees.
The Federation of Investment Managers Malaysia Chairman Abdul Kadir Kassim, commending the new scheme, said that it has given the private sector another avenue to save for retirement.
He also called on the public to understand the scheme before deciding to contribute.
"They must take into account various factors such as their age, personal and household income, risk tolerance, retirement objectives as well as the suitability of the different funds under the various schemes to meet their retirement needs, fees and charges of the funds," he told Bernama.
Datin Maznah Mahbob, Chief Executive Officer/Executive Director in Funds Management Division of AmInvestment Bank, which is one of the private retirement scheme providers, said the group aimed at providing consistency in returns to attract contributors.
She said an important advantage of the scheme was that the contributors have the chance to find out about the scheme directly from the provider.
"We will educate the public and answer the contributors' inquiries in order for them to understand the scheme better," she told Bernama.
Meanwhile, CIMB Group Chief Executive Datuk Seri Nazir Razak said the launch of the Private Pension Administrator (PPA) was a very significant milestone in the development of a private pension industry.
He said individuals must be able to generate more capital for their retirement or Malaysia will soon have an ageing problem, which is stifling many western economies today.
At the same time, the new industry will boost the capital markets with a new and significant long term group of investors, he said.
BERNAMA
The world pension environment today typically provides voluntary schemes as well as mandatory pension schemes like the Employees Provident Fund, he said.
"The private scheme offers people extra investment opportunities and tax benefits as well as an option to diversify investment portfolio," he said at a press conference following the launch of the pension scheme in Kuala Lumpur today.
The private scheme would also enable the participation of some
segments like the self-employed, who do not contribute to any pension schemes.
He said employers should also have the way to be able to look at structuring some contribution by way of remuneration packages that will help in terms of building retirement for their employees.
The Federation of Investment Managers Malaysia Chairman Abdul Kadir Kassim, commending the new scheme, said that it has given the private sector another avenue to save for retirement.
He also called on the public to understand the scheme before deciding to contribute.
"They must take into account various factors such as their age, personal and household income, risk tolerance, retirement objectives as well as the suitability of the different funds under the various schemes to meet their retirement needs, fees and charges of the funds," he told Bernama.
Datin Maznah Mahbob, Chief Executive Officer/Executive Director in Funds Management Division of AmInvestment Bank, which is one of the private retirement scheme providers, said the group aimed at providing consistency in returns to attract contributors.
She said an important advantage of the scheme was that the contributors have the chance to find out about the scheme directly from the provider.
"We will educate the public and answer the contributors' inquiries in order for them to understand the scheme better," she told Bernama.
Meanwhile, CIMB Group Chief Executive Datuk Seri Nazir Razak said the launch of the Private Pension Administrator (PPA) was a very significant milestone in the development of a private pension industry.
He said individuals must be able to generate more capital for their retirement or Malaysia will soon have an ageing problem, which is stifling many western economies today.
At the same time, the new industry will boost the capital markets with a new and significant long term group of investors, he said.
BERNAMA
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