EPF members nowaday may abroad their investment into unit trust, as allowed since 2003. Since that, total of 42,800 Employees Provident Fund (EPF) members invested a combined RM461 million in unit trust and other approved instruments under the Members’ Investment Scheme in the first three months of this year. Unaudied first quarter (Q1) performance statistics released by the EPF showed that the number and value of withdrawals for investment purposed increased by 12 percent and 27 percent respectively as compared to the last quarter (Q4) of 2003.

But, why is that EPF members had been given this opportunity instead leaving their fund and withdrawals when they retired? As known, EPF scheme through their monthly income only return back the fund each year by dividend and bonus. Over more that 40 years, EPF members only received their return thourgh average 2 percent till 8.5 percent annum. In addition for abroading members’ fund, EPF members then had been given a chances to invest their own fund in unit trust. This new scheme is fully done by a condition as per below:

Investment Withdrawals are applicable to members who have savings of at least RM5,000 more than basic savings required in Account I, and have not reached 55 years of age. For qualified members, they can invest part of this savings in unit trust through external fund managers appointed by the Ministry of Finance. The amount of savings that can be invested must not be less than RM1,000 and not more than 20 per cent of the amount exceeding the required basic savings in Account 1. No direct investments are allowed. You are also not allowed to make additional investments using your own money. Investments can be made at intervals of three months from the date of the last transfer, subject to the availability of the required balance in Account I.

How to make withdrawal?

Before submitting the withdrawal application, you must obtain ‘Penyata Caruman Yang Boleh Dilaburkan’ from any EPF office. To obtain it, you need to produce your Identification Card at the counter. Enquiries made through the telephone or e-mail will not be entertained. Your request will only be entertained if you are eligible to make an investment withdrawal at that particular time. You then need to open an investment account with the chosen fund manager (unless you already have an account with that fund manager).

Documents needed for submission to the fund manager are:

  • Form KWSP 9N (AHL) which is duly completed;
  • ‘Penyata Caruman Yang Boleh Dilaburkan’ statement; and
  • Member’s Identification Card/Smart Card or Police Identification Card :
    • For Police Identification Card holder, please produce a letter from Police Department confirming your Identification Card number.
    • For Smart Card holder, please produce a photocopy of your Smart Card and affix your right and left thumb impression on the copy.

‘Amaun yang dipohon’ field on the form should be filled in after members have discussed with the respective fund manager on the amount that they wish to invest on condition that the amount does not exceed the maximum amount allowed. The fund manager will submit the duly completed Form KWSP 9N (AHL) to the EPF to be processed. It is important that you fill up the right forms correctly and make sure that all your supporting documents are in order. This is to avoid unnecessary delays in the processing of your application.

Please take note that thumbprint impressions are required for the application form and MyKad photocopy. You must use the thumbprint pad that is specifically meant for making thumbprint impressions. Use of other types of materials such as the inkpad for rubber stamps is not acceptable by the EPF.