EPF’s member contributions up almost 10% in 2Q18

By SHAHEERA AZNAM SHAH / Pic By TMR

The Employees Provident Fund’s (EPF) member contributions recorded a 9.9% year-on- year (YoY) growth to RM18.17 billion for the April to June period this year against the RM16.52 billion reported in the previous year’s corresponding period, in line with the increasing number of its members.

The EPF said in a statement yesterday the total accumulated contributions stood at RM780.07 billion for the period ended in its second quarter of 2018 (2Q18).

The total number of EPF members rose 2.51% YoY to 13,996,515 as at end-June 2018, while the number of employers registered with the EPF rose 2.01% YoY to 499,321.

“Among the EPF members, 7,213,774 were active contributors and 115,125 were newly registered members.

“In 2Q18, there was a slight drop of 2.57% in the number of newly registered employers to 14,568 from 14,952 last year, bringing the total number of registered employers as at end- June 2018 to 499,321,” it said.

The total approved applications for all withdrawals in 2Q18 rose 4.87% YoY to 598,919 from 571,130 recorded last year.

“The total amount being withdrawn in 2Q18 rose slightly to RM12.65 billion compared to RM12.48 billion in 1Q17,” it said.

The EPF stated that the approved application for its Age 55 Flexible Withdrawal scheme jumped 48.65% YoY to 67,969 from 45,723 in 2017.

The amount withdrawn for the scheme was recorded at RM2.92 billion against RM1.78 billion in the previous year’s corresponding quarter.

EPF deputy CEO (operations) Datuk Mohd Naim Daruwish said the total number of flexible withdrawals has continued to increase steadily in each quarter.

“The increase in withdrawals signifies the members’ growing preference to retain part of their savings with the EPF in order to continue receiving dividends on the balance in their account,” he said.

The approved application for the Age 60 Flexible Withdrawal scheme jumped 43.16% to 40,276 for the quarter, with a total amount of RM861.3 million from 28,133 last year.

However, the number of approved applications for the Age 55 Full Withdrawal scheme dropped 50.45% to 20,769 in 2Q18 from 41,914 last year.

The total withdrawal amount fell 48% to RM1.3 billion from RM2.51 billion last year.

Meanwhile, the usage of the EPF’s self-service channel, i-Akaun, jumped 72.02% YoY to 9.55 million usage from 5.55 million last year.

“Through i-Akaun, members are able to submit applications for housing or education withdrawal via e-Pengeluaran, while employers can submit their contribution details and make contribution payments online via e-Caruman,” the EPF stated.

The number of approved applications sent through e-Pengeluaran stood at 58,304 and amounted to RM3.23 billion.

“Out of this, a total of 36,101 applications, with an accumulated amount of RM1.62 billion were for Education Withdrawal.

“Starting April 2018, all submission of applications for education withdrawal by higher learning institutions and education loan providers participating in e-Pengeluaran must be done online and submissions through the EPF counters will no longer be accepted,” it said.

The EPF noted that 424,279, or 99.9%, of the employers submitted their contribution details through the e-Caruman channel, while 354,888 or 83.8% of them utilised the e-Payment system to make contribution payments.

“We hope to see more positive growth in our transformation journey to become a digital organisation, in line with changing member demographics and expectations,” Mohd Naim said.