RM100 Billion Simpanan Shariah, 25% snapped up in week 1.

Yes, I shared about this a few weeks back. I think this an option which we should know, whether or not we decide to switch over. Read here for the earlier one. EPF new Shariah-compliant savings scheme Latest news is that out of the initial RM100 billion allocation, about quarter has already been snapped up within first week of registration. EPF chief executive officer Datuk Shahril Ridza Ridzuan said: “The take-up rate has been extremely encouraging this first week of registration and we believe that members will continue to come to our counters to register for Simpanan Shariah 2017.”

As per media reports, a total of 208,795 EPF members have registered for their EPF account to be switched from the conventional one into the Shariah one based on syariah principles. Closing date to register would be Dec 23 2016. For those who did not register in time, members could opt to register next year. Shahril said, “We expect to increase Simpanan Shariah by RM20bil to RM30bil every year, subject to members’ demand and availability of assets. Members will have the opportunity to switch in a future year even if the initial RM100bil allocation is finished for 2017.”

I think it’s more important to understand that where investments are concerned, this Simpanan Shariah would have to comply with requirements based on syariah principles while the good thing is that the Islamic banking outlook and growth remains positive. Just look at the number of countries trying to get a slice of this including our ASEAN neighbours and you would get the idea. Returns wise, I really do not expect it to be very different. This is because EPF has started to invest more overseas and this would of course be more volatile even if more lucrative at the same time. Read more if needed. 

written on 14 Aug 2016

Next suggested article:   Turning RM100 into Rm76,000, how to do it?

 

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