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09 June 2015

CIMB-Principal Upbeat on Corporate Private Retirement Scheme

Kuala Lumpur: CIMB-Principal Asset Management Berhad (“CIMB-Principal”), one of the leading unit trust and private retirement solution providers in Malaysia, hosted its inaugural PRS conference themed ‘#lifeafterwork’ for its valued and potential corporate plan sponsors at the Mandarin Oriental Hotel, Kuala Lumpur, aimed at attracting, retaining as well as enriching employees’ lives to boost productivity via Corporate Private Retirement Scheme (“PRS”).

The conference was attended by over 400 corporate guests as well as local and international industry experts including Goh Ching Yin, Executive Director, Market Development, Securities Commission Malaysia, Dato’ Steve Ong, Chief Executive Officer, Private Pension Administrator (PPA) Malaysia, Gregory J Burrows, Senior Vice President, Retirement and Investor Services, Principal Financial Group, Hamidah Naziadin, Group Chief People Officer, CIMB Group, Alejandro Echegorri, Deputy Chief Executive Officer, ASEAN Region, CIMB-Principal, Munirah Khairuddin, Chief Executive Officer,  CIMB-Principal, Anil Singh Gill, Chief Finance Officer, Touch ’n Go Sdn Bhd (Touch ’n Go) and Mazri Abdul Rahim, Chief People Officer, Celcom Axiata Berhad were present to share their knowledge on the retirement landscape in Malaysia and other countries.

Effendy Shahul Hamid, Chief Executive Officer, Group Asset Management and Investments, CIMB Group said, “Forced retirement savings are no longer enough and the need to supplement this via private pensions is now a necessity. It is an opportune time for corporates to step up and use vehicles like private retirement schemes to add value to employee well-being.”

“This is a win-win situation for employers and employees alike, and will ultimately create a sustainable socio-economic environment as individuals move towards and into retirement”, added Effendy.

Gregory J Burrows provided a global perspective on corporate-based employee retirement plans. “As we look at retirement savings around the world, we consistently see a gap between mandatory savings and the total amount of income individuals will need in retirement. Employer-based plans are an essential tool to help the majority of individuals close their savings gap and achieve long-term financial security.”

Corporate employers today can play an important role to shape the social landscape of their employees and the country. Not only that, PRS provides employers with a tax relief of up to 19% (inclusive of 12% employer EPF contribution) while simultaneously enabling them to differentiate themselves as caring employers. At the individual level, employees can enjoy a tax relief of up to RM3,000. Those who are below 30 years old are also eligible for a one-time PRS Youth Incentive of RM500.

As of 30 May 2015, CIMB-Principal manages a total of 59 retail unit trust funds in which 21 are Shariah-compliant, 12 wholesale funds, 10 Private Retirement Scheme (PRS) funds and two exchange-traded funds (ETFs). CIMB-Principal is currently one of the largest PRS providers in Malaysia with RM239.5 million in AUM in the PRS industry with 27% of the market share. 

(From Left to Right): Munirah Khairuddin, Chief Executive Officer, CIMB-Principal Asset Management Berhad, Hamidah Naziadin, Group Chief People Officer, CIMB Group, Dato’ Steve Ong, Chief Executive Officer, Private Pension Administrator (PPA) Malaysia, Effendy Shahul Hamid, Chief Executive Officer, Group Asset Management & Investments, CIMB Group, Goh Ching Yin, Executive Director, Market Development, Securities Commission (SC) Malaysia, Gregory J. Burrows, Senior Vice President of Retirement and Investor Services, Principal Financial Group and Alejandro Echegorri, Deputy Chief Executive Officer, ASEAN Region, CIMB-Principal Asset Management Berhad at the Corporate PRS Conference 2015. The conference aims to continuously impart thought leadership to corporations in Malaysia on the long-term benefits of the Corporate Private Retirement Scheme (PRS), which is aimed at achieving a comfortable retirement future amongst employees.