CIMB-Principal Honours Top Private Retirement Scheme Partners
01 October 2017
KUALA LUMPUR: CIMB-Principal Asset Management Berhad (“CIMB-Principal” or “the Company”) recently honoured its top Corporate Private Retirement Scheme (“PRS”) partners, including Celcom Axiata Berhad, S.L.NG & Associates, IJM Corporation Berhad and Cuckoo International (MAL) Sdn Bhd, for their efforts in providing the best investment retirement solutions for their employees, in conjunction with the company’s third annual corporate PRS conference. This was the first year of the PRS conference in which CIMB-Principal started recognising corporate employers who had gone the extra mile to provide their employees with the opportunity to save for their pension by investing in CIMB-Principal’s PRS funds approved by the Securities Commission Malaysia.
The event was attended by Effendy Shahul Hamid, CEO, Group Asset Management and Investments, CIMB Group and Renee Schaaf, Senior Vice President and Chief Operating Officer, Principal International, who were joined by 100 corporate clients including senior representatives of the top corporate PRS winners.
Munirah Khairuddin, Chief Executive Officer of CIMB-Principal commented, “We are honoured to have this opportunity to recognise corporates who have been proactive in facilitating their employees’ contribution to the Private Retirement Scheme. Retirement planning is a crucial aspect of one’s financial independence and corporates that help their employees build a comfortable nest egg prove their commitment towards their employees’ well-being even beyond their working years. This supports talent retention and employee loyalty, a major part of the ‘engine’ behind every successful, sustainable business.”
A total of 16 awards were given out to the top corporate PRS employers under the categories of ‘large & medium corporations’ and ‘SMEs’. The accolades were awarded based on a set of specific criteria including size of retirement assets accumulated, number of employees enrolled as well as employers’ contribution to the retirement assets.
The PRS industry is still at its infancy but had shown encouraging growth over the past five years. It has over 260,000 active members who have collectively saved and invested approximately RM1.8 billion via PRS for their retirement.
Malaysia has a workforce of 15.03 million¹ out of which 6.83 million² are members of the Employees Provident Fund (“EPF”). Excluding EPF members and civil servants who will receive life pension upon retirement, the statistics indicate there is a sizable portion of the workforce not being covered by any dedicated retirement scheme. Additionally, only 41% of active EPF contributors at various age bands³ are on track to meet the Basic Savings which serve as a guideline of the minimum amount that members should have when they reach age 55 to support their basic needs.
About CIMB Principal’s Corporate PRS Plan
The Corporate PRS Plan jointly designed by employers and PRS providers is the most convenient and sustainable way to reach out to majority of the workforce in the country. Via the Corporate PRS Plan, an employer can facilitate employees’ contribution to PRS through payroll deduction which usually can be conveniently carried out as an addition to the existing payroll facilities. Employers can also opt to match employees’ contribution, or redirect employers’ EPF contribution above 12%, or contribute a portion of staff benefits into PRS to further encourage the habit of savings among employees for retirement. PRS contribution is tax exempted both at employer and employee levels, subject to the limits as determined by the prevailing taxation laws.
CIMB-Principal prides itself as one of the pioneers and leading Corporate PRS providers in Malaysia. Since the introduction of PRS in Malaysia, CIMB-Principal has made significant headway in terms of laying a solid foundation for necessary infrastructures and resources to ensure seamless support and services to its Corporate PRS clients both at employer and employee levels. The rapid growth in enrollment number of Corporate PRS clients and employees has spurred CIMB-Principal to continuously look at ways to elevate service capability. CIMB-Principal has the advantage of leveraging its vast experience of Principal Financial Group, a leading global retirement services provider, in product development, service model and thought leadership.
¹ Department of statistic Malaysia, June 2017
² Employees Provident Fund, February 2017
³ KWSP 2016 Anual Report
Renee Schaaf, Senior Vice President and Chief Operating Officer, Principal International (10th from left); Effendy Shahul Hamid, CEO, Group Asset Management and Investments, CIMB Group (ninth from left); Munirah Khairuddin, CEO, CIMB-Principal Asset Management Berhad (eighth from left) and Alenjandro Echegorri, CEO, ASEAN Region, Executive Director of CIMB-Principal (far right) with representatives of the winners of the CIMB-Principal Corporate PRS awards held in Kuala Lumpur recently.
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