Securities Commission, Youth and Sports Ministry collaborate in "TN50 PRS"

PETALING JAYA: The Securities Commission (SC) and the Ministry of Youth and Sports today announced a new collaboration under the National Transformation 2050 (TN50) called "TN50 PRS Youth Incentive" (TN50 PRS), to encourage Malaysian youths to save and invest for the future.
SC said in a statement that TN50 PRS aims to enhance greater awareness and understanding on the importance of early retirement planning and to encourage participation in Private Retirement Schemes (PRS) among the youths.
Under TN50 PRS, Malaysians between the age of 20 and 30 who contribute RM1,000 to any PRS fund will receive a matching contribution of RM1,000 from the government in 2018. This is a continuation of the government's incentive which was first announced under Budget 2014 by the Prime Minister.
Introduced in 2012, PRS is a voluntary retirement savings scheme that complements the mandatory occupational scheme of the Employees Provident Fund (EPF).
PRS Online, an online platform that allows direct subscription for PRS schemes through the Private Pension Administrator Malaysia (PPA) website (www.ppa.my), was also launched today.
New PRS subscribers aged 30 years and below will enjoy zero sales charges with selected PRS providers when they sign up via PPA Online. PPA also launched a new mobile application for members to manage their PRS accounts.
Meanwhile, SC chairman Tan Sri Ranjit Ajit Singh said 2017 was a record year for PRS with the highest number of new members since it was launched five years ago.The total number of members grew 36% to 301,279 in 2017, from 221,235 in 2016.
Total asset under management (AUM) of the 56 existing PRS funds also rose 47% to close the year at RM2.23 billion, from RM1.51 billion in 2016.
The youth segment accounted for 7% of total PRS membership in 2013, but the figure increased significantly to 28% as at December 2017.