Where Does Our EPF Money Go?

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EPF contributions from employees and employers come close to RM$5bil per month. That is no small sum. Penang Monthly explores where this money goes.

Most of the 1.4 million civil servants in Malaysia can expect a monthly pension, which is called a defined benefit. Those in the private sector, on the other hand, are entitled to a defined contribution in the form of a lump sum of savings from a pension fund.

There are three pension funds representing the wage-earning labour force in Malaysia: the Employees Provident Fund (the EPF), the Retirement Fund Incorporated (better known by its Malay acronym,

KWAP1) and the Armed Forces Pension Fund Board (or its Malay acronym, LTAT).

The EPF is easily the largest of the three. It is the oldest and has the largest number of members.


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