Malaysia My Second Home (MM2H)
Applicants are expected to be financially capable of supporting themselves for ten years on this programme in Malaysia, without the need to work in the country. Besides fulfilling the basic financial criteria of Fixed Deposit placement of RM150,000 (for those aged 50 and above) or RM 300,000 (for those aged below 50), applicants should furnish documentation on their financial position to strengthen their application.
i Aged Below 50 years old
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| 1 Successful applicants need to open their fixed deposits in Ringgit Malaysia (RM) only.
2 Participants need to obtain approval from Ministry of Tourism before proceeding to withdraw the fixed deposit 3 Participants under this programme may withdraw their entire fixed deposit anytime should they decide to terminate their stay in Malaysia under this programme. However, they must obtain prior approval from the Ministry of Tourism. |
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| Restrictions |
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Participants under Malaysia My Second Home Programme are not allowed to work/be employed while staying in Malaysia. In addition, they should not participate in activities that can be considered as sensitive to the local people and a threat to the security of the country.
Source : Malaysia My Second Home Site |
AIA Lowest Fixed Rate Home Loan
Call 012-233 8525
AIA MORTGAGE SAVE
Comes with 100% Protection against Death & Permanent Disability at affordable premiums PLUS Guaranteed Savings and Cash Value
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A I A
MORTGAGE SAVE |
Interest Rates |
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LOAN TO VALUE (LTV) More than 80% to 90% |
LOAN TO VALUE (LTV) 80% and BELOW |
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Zero Moving Cost (ZMC) Package |
5.85% p.a. Fixed for entire loan tenure |
5.75% p.a. Fixed for entire loan tenure |
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Non Zero Moving Cost (NZMC) Package
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5.70% p.a. Fixed for entire loan tenure |
5.60% p.a. Fixed for entire loan tenure |
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The additional terms and conditions for AIA Mortgage Save are as follows:
1) Customers would be required to purchase a new AIA Whole Life Non-Par (WLNP) policy to fully cover the loan.
2) The new AIA policy purchased is to be assigned to the loan and must be kept in force throughout the entire loan duration. A lapse in policy due to non payment of the premiums will result in the loan reverting to the normal rates of 5.99% p.a. from the date policy is lapsed and the benefits terminated.
3) Cash value is guaranteed with the condition that the policy premiums are paid promptly and subject to other terms and conditions of the AIA WLNP policy.
4) Eligibility for AIA Mortgage Save is also dependent on the insurability and the health conditions of the clients.
Who can apply?
· Individual Malaysian Citizens or permanent residents.
· For Self Employed – The business established for at least 3 years and operating profitability for the past 3 years.
Properties Financed
Completed residential properties with permanent Cerfiticate of Completion & Compliance (CCC)
· Landed – Klang Valley, Penang/Seberang Prai, Sg. Petani & Kulim, Seremban, Johor Bahru, Ipoh, Kuantan, Malacca Town, Kota Kinabalu, Kuching and Batu Pahat only.
· Non-landed e.g. apartments, condominiums & townhouses – Penang Island & Klang Valley only (excluding Kajang and Klang).
· Note: For leasehold land, the unexpired land lease must exceed 30 years upon maturity of the loan ( for Peninsular Malaysia and Kota Kinabalu only).
Excluding residential properties located at landslip/flood prone area/ Oxidation pond/power station, T-junction and native land.
Under construction properties – available within AIA’s approved list of panel of developers and projects.
Loan Tenure – Up to 30 years or age 65 whichever is earlier.
Minimum Loan Financed : RM 100,000
Margin of Financing (MOF)
· MOF is based on Open Market Value (OMV) or purchase price whichever is lower for new purchase.
· OMV shall be based on the valuation report prepared by AIA panel of valuers.
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Landed Properties |
Non-landed Properties |
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New Purchase (Up To) |
90% |
80% |
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Refinancing (Up to) |
80% |
80% |
*Note: Exceptions can be considered on a case by case basis. MOF is subject to the discretion of AIA Bhd.
Prepayment Fee for Non Zero Moving Cost (NZMC package)
There will be a prepayment fee levied should the loan be refinanced or settled due to sale of property within the 1st 5 years from the date of 1st drawdown. The prepayment is chargeable at the rate of 0.35% times the number of remaining years of loan (not exceeding 4% subject to a minimum rate of 2%) times the amount prepaid. The prepayment fee will be waived if settlement or partial settlement is from own savings and / or withdrawal of EPF. If due to the sale of property, the fee can be waived if it is replaced by another loan subject to the discretion of AIA.
Prepayment Fee for Zero Moving Cost (ZMC package)
A prepayment fee of 3% of the approved loan amount will be levied if the loan is settled within 5 years from the date of 1st drawdown.
Insurance
· Houseowner Insurance on the property to be taken with AIA for landed properties.
· All loans under AIA HOME LOAN packages are to be adequately protected by AIA Group Mortgage Reducing Term Assurance (MRTA) or AIA life policies and for AIA Mortgage Save it is packaged together with AIA new Whole Life Non Par.
Process in Buying A Property in Malaysia
An foreign purchased asked me recently what is the process of buying a property in Malaysia and this give rise for me to post on the topic, briefly.
1 – You list down your creterias and here are suggestion of important pointers to decide
a) Your budget – when an agent asked you for your budget, it will expediate the process faster and as a purchaser, you don’t need to get offended by the question. I came across some clients who were defensive and some even got mad by the question. It doens’t really meant we can’t afford nor the person is looking down on you. Many investors would preferred to buy few properties at different locations, for different purposes. Again, it is for easing the whole process in a faster mode.
b) Type of Property – Landed (Bungalow, Semi-Detached, 3 storey links, 2 storey links, 1 storey link?), Strata Properties (Apartments, Serviced Apartments which are on commercial titles which you will be paying commercial rate for utilities and others relevant charges), Commercial, Industrial, Land?
c) Area - Try to narrow down to 3 specific areas, if possible 3 specific community/projects.
d) Reason to buy – for own occupation or investment (rent/capital gains?). Remember, especially when you and your realtor have not met, the person wouldn’t know why you are buying. By keeping your intentions open to your realtor, you will surely get a prompt service from them.
2 – After you have decide to purchase a property
a) Pay a booking fee of 2-3% to your agent, payable to the company and remember to ask for a receipt
b) If it is possible, ask for viewing of the title of the said property.
c) Make sure to keep close contact with your agent, to get a copy of the Offer Letter which you have signed upon paying the booking fee above, a duly signed copy by the owner.
d) From the date of the owner/vendor’s signature on your Offer Letter, you have a total of 14 days to sign the actual Sales and Purchase Agreement (SPA)
e) Usually your lawyer/solicitor will draft out a copy of the draft SPA, after getting hold of the relevant documents* from the Vendor. This is done withint the first week after Vendor have signed the Offer Letter.
f) Vendor’s lawyer will review the draft SPA and revert back to your lawyer. If the case have complications or the lawyer is being difficult, then it may go way beyond the 14 days. But please keep follow up with your lawyer. So, getting a reliable lawyer is of importance.
g) When all is agreed upon on the SPA, a date is set to sign the actual copy. You can do so in one sitting at the lawyer (buyer/vendor’s lawyer) or you can do it at your own lawyer’s office. When you sign the SPA, you are to pay the balance of the 10% of the purchase price. This mean, if you have paid a booking fee of 3% when you made your offer, then the balance will be 7% of the purchase price.
h) From here, the task is left with your lawyer. You just need to check with him the status occasionally, like every 10-14 days what is the latest standing. Let me forewarn you, for freehold property, you may be able to comply with the “Completion Date” within 3+1 months as stated in the Offer Letter as well as the SPA. But with leasehold property and if it is an apartment without strata title, it may take up to one year or more to complete it. This means, you don’t get to enjoy the property in whatever sense. You won’t get possession of it until the paper works is done with the local authorities by your lawyer and your name is stamped on the title in the land office.
i) As such, if you are looking at non-landed properties, it is good to check whether the strata title has been issue.
I hope the above will give you an idea of the process and feel free to email me should you have further enquiries.
Credit Card Liability – maximum RM250
The Star Online
Saturday December 22, 2007
Most unaware of RM250 limited liability
CARDHOLDERS need not pay more than RM250 whenever their lost or stolen credit cards are used by others. Yet, oftentimes, they end up paying much more.
This is because Bank Negara has not informed cardholders that they do not have to pay more than RM250 for fraudulent transactions carried out using their lost or stolen cards, when they had not acted fraudulently and had informed the banks about the lost or stolen cards as soon as possible.
This protection is given under Clause 13.2 of Bank Negara’s Credit Card Guideline (“The cardholder’s maximum liability for unauthorised transactions as a consequence of a lost or stolen credit card shall be confined to a limit specified by the issuer of credit cards, which shall not exceed RM250 provided the cardholder has not acted fraudulently or has not failed to inform the issuer of credit cards as soon as reasonably practicable after having found that his credit card is lost or stolen”).
Banks know about Clause 13.2 but have chosen to ignore it. Instead they pursue cardholders for the fraudulent transactions.
They will tell cardholders that a clause in the credit card contracts states that all transactions carried out before the loss of the cards are reported to the banks, are deemed to be carried out by the cardholders.
Many cardholders then pay up because they are unaware of the RM250 limited liability.
Bank Negara should rule that:
·THE RM250 maximum liability on fraudulent transactions is highlighted to cardholders in the card agreements as well as in the monthly card statements.
·BANKS are not allowed to insert any clause in the card agreement which is contrary to Clause 13.2.
·BANKS should refund all money in excess of the RM250 collected from cardholders whose cases clearly come under Clause 13.2.
S.M. MOHAMED IDRIS,
President,
Consumers Association of Penang
Takaful Insurer – AIA Bhd
American International Assurance Bhd (AIA Bhd), has received Malaysia’s first International Takaful Operator(ITO) licence, from Bank Negara Malaysia.
The licence will allow AIA Bhd’s wholly owned unit, AIA Takaful International Bank (ATIB), to carry out composite – family and general- takaful and re-takaful business in international currencies.
ATIB has been operational since Sept 15 this year.
“We are now able to offer takaful solutions for the middle and affluent segments of qualified residents and non-residents in Malaysia,” said AIA Bhd chief executive officer and director of ATIB, Khor Hock Seng in a statement today.
“This will enable us to tap the growing takaful global market and contribute to the expansion of ATIB’s takaful infrastructure. It will also establish Malaysia as a regional centre of excellence for AIA,” he added.
As one of the few players in Malaysia offering takaful solutions in international currencies, ATIB is well positioned to benefit from the steady growth of the global and domestic Islamic finance sector.
SOURCE – BERNAMA
Any queries? E-Mail us!
Visa Requirements To Malaysia
Upon searching the internet, here are some information pertaining to the above.
Type of Visa in Malaysia
1) Single – valid for 3 months
2) Multiple – valid from 3-12 months
3) In Transit – not leaving airport, don’t need visa
Foreigner Buyers
This Guideline shall apply to any of the following transactions which requires the approval of FIC:
Acquisition Of Property By Local Interest
4.1 Acquisition of property which is valued at RM10 million and less than RM20 million by non-Bumiputera interest or local interest from umiputera interest; or
4.2 Acquisition of property which is valued at RM20 million and more by local interest. This property has to be registered under a locally incorporated company and is subject to the conditions for acquisition.
Acquisition Of Property By Foreign Interest
4.3 Any acquisition of property by foreign interest from local interest and other foreign interest;
4.4 Any acquisition of property which will be developed as a development project other than residential unit; and
4.5 Foreign interest is only allowed to acquire property other than residential unit valued at more than RM150,000 per unit with no limit on the number of property acquired.
Acquisition Of Commercial Unit
4.6 Acquisition of commercial property valued at less than RM10 million by foreign interest does not have to incorporate a local company and will be subjected to the commercial property is only for own use.
Acquisition Of Agricultural Land
4.7 Foreign interest is only allowed to acquire agricultural land valued more than RM250,000 or at least five (5) acres in area subject to the conditions for acquisition;
4.8 Acquisition of agricultural land by foreign interest is only allowed for the following purposes:
4.8.1 to carry out agricultural activities on a commercial scale using modern or high technology; or
4.8.2 to carry out agro-tourism project; or
4.8.3 to carry out agricultural or agro-based industrial activities for the production of goods for export. However, for this purpose relaxation on equity condition may be considered.
Acquisition Of Industrial Land
4.9 Foreign interest is allowed to acquire industrial land without any price limit and must be registered under a locally incorporated company and will be subjected to the conditions for acquisition and the conditions for foreclosure.
Acquisition Of Property For Hostel Purpose
4.10 Local company owned by foreign interest is allowed to acquire property valued more than RM60,000 per unit to be occupied as a hostel for the company’s employees.
Acquisition Of Property Through Public Auction
4.11 Foreign interest including foreign bank and financial institution incorporated outside Malaysia is allowed to acquire property through public auction valued more than RM150,000 per unit other than residential unit and will be subjected to the conditions for acquisition.
Acquisition Of Contiguous Properties
4.12 Foreign interest is allowed to acquire two (2) or more contiguous properties with a total value of RM10 million and above and will be subjected to the conditions for acquisition.
Acquisition Of Entire Building Or Project
4.13 Acquisition of an entire building or an entire property development project, valued at RM10 million and above must be registered under a locally incorporated company and will be subjected to the conditions for acquisition.
Redevelopment Of Property
4.14 Foreign interest is allowed to acquire land or land with building for redevelopment on a commercial basis. If this acquisition is not meant for own use, it has to be registered under a locally incorporated company and will be subjected to the conditions for acquisition.
Transfer Of Property
4.15 Transfer of property to a foreigner based on love and affection is allowed among immediate family members only.
Leasing Of Property
4.16 Leasing of property for a term of 10 years and above by foreign interest.
Disposal Of Property
4.17 Disposal of property by foreign interest to another foreign interest.
4.18 Disposal of property by foreign interest to local interest valued at more than RM20 million.
Charging Of Property To Foreign Interest
4.19 Charging of property in Malaysia to foreign interest including foreign bank and financial institution incorporated outside Malaysia.
Acquisition Of Property By Public Company
4.20 Acquisition of property by public company which is financed by cash.
4.21 Acquisition of property by Real Estate Investment Trust (REIT) management company through private REIT fund.
5. This Guideline shall apply to transaction which requires approval from any Ministries or Departments/Government Agencies/Statutory Bodies eventhough the approval of FIC is not required.
6. This Guideline shall apply to acquisition which requires the consideration of the Securities Commission but does not require the approval of FIC for any proposal which is subjected to Section 32 of the Securities Commission Act 1993.
7. The State Authority has the discretion to consider any acquisition based on the area or location of the property, types of property and percentage of the total units in a project.
V. ACQUISITION FOR NOTIFICATION
8. Acquisition of property which is valued at RM10 million and less than RM20million needs only to be notified to FIC if the transactions involve the following parties:
8.1 acquisition by Bumiputera interest from other Bumiputera interest; or
8.2 acquisition by Bumiputera interest from non-Bumiputera interest; or
8.3 acquisition by non-Bumiputera interest from other non-Bumiputera interest; or
8.4 acquisition by local interest from foreign interest.
VI. EXEMPTIONS
9. This Guideline shall not apply in the following situations:
9.1 Acquisition of property valued at less than RM10 million by local interest;
9.2 Multimedia Super Corridor (MSC) status companies are allowed to acquire any property in the MSC area provided that the property is only used for their operational activities including as residence for their employees;
9.3 any acquisition of property by companies operating in the approved area in the Iskandar Regional Development and have been granted the status by Iskandar Regional Development Authority (IRDA);
9.4 any acquisition of property by companies operating in the approved area in any regional development corridor by companies that have been granted the status by the local authority as determined by Government;
9.5 any acquisition of property by companies which have obtained the endorsement from the Secretariat of the Malaysian International Islamic Financial Centre (MIFC) provided that the property is meant for own use in carrying out international Islamic financial transaction and the acquisition is a result of Islamic financial financing scheme which is
required in order to comply with the Syariah principle only;
9.6 foreign interest is allowed to acquire residential unit valued at more than RM250,000 per unit subject to approval of the relevant local authorities while “Malaysia My Second Home” Programme is to be referred to Ministry of Tourism;
9.7 transfer of property pursuant to a will and court order;
9.8 acquisition of industrial property by manufacturing company licensed by the Ministry of International Trade and Industry as well as manufacturing company which is exempted from obtaining manufacturing license for own manufacturing operation;
9.9 any acquisition of property by Ministries and Government Departments (Federal and State);
9.10 any acquisition of property by Minister of Finance Incorporated, Chief Minister Incorporated and State Secretary Incorporated are considered to have been approved by the Government;
9.11 any privatization projects whether at the Federal or State level provided that it involves the companies which are the original signatories in the contracts for the privatized projects;
9.12 any acquisition of property for own use by local companies that have been granted the status of International Procurement Centre, Operational Head Quarters, Representative Office, Regional Office and Labuan offshore company or other special status granted by the Ministry of Finance, MITI and other ministries; and
9.13 any acquisition or disposal of property/asset for the purpose of Asset-Backed Securities (ABS).
VII. MODE OF PAYMENT
10. The purchase consideration is applicable in all modes of payment including:
10.1 cash;
10.2 exchange of shares;
10.3 debt settlements;
10.4 exchange of fixed assets;
10.5 charging of shares; and
10.6 any combination of the above.
11. Financing from internal and external sources are allowed for all acquisition of properties.
VIII. RESTRICTIONS
12. Foreign interest is not allowed to acquire:
12.1 residential unit under the category of low and medium low cost as determined by the State Authority;
12.2 properties built on Malay reserve land;
12.3 properties allocated to Bumiputera (Bumiputera quota) in any property development project as determined by the State Authority;
12.4 stall and service workshop;
12.5 agricultural land developed on the basis of the homestead concept; and
12.6 properties gazetted under National Heritage Act 2005.
IX. CONDITIONS FOR ACQUISITION
13. Conditions for acquisition of property by local and foreign interests comprise the equity, share capital, property development and employment conditions as follows:
Equity Conditions
13.1 Companies which do not have any Bumiputera equity or having less than 30% Bumiputera equity, are required to have or to increase the Bumiputera equity to at least 30%. The remaining equity shareholding can be held either by local interest, foreign interest or by both;
13.2 Companies with Bumiputera equity shareholding of 30% or more, but less than 51% are required to maintain at least 30% Bumiputera equity at all times;
13.3 Companies which already have Bumiputera equity shareholding of 51% or more, will be required to maintain at least 51% Bumiputera equity at all times;
13.4 The requirement of at least 30% Bumiputera equity participation will be applied uniformly except if expressly stated otherwise by the Government; and
13.5 For companies which activities involve national interests such as water and energy supply, broadcasting, defense and security and any activities which is of national interest as determined by the Government from time to time, the participation of foreign interest is limited to 30%. In certain circumstances, the Government may also impose other conditions such as the issuance of the “golden share”.
Share Capital Conditions
13.6 Local company owned by foreign interests with a paid-up capital of less than RM250,000 will be required to increase the share capital to at least RM250,000; and
13.7 Local company owned by local interest with a paid-up capital of less than RM100,000 will be required to increase the share capital to at least RM100,000.
Employment Condition
13.8 Companies must, to the best of their ability, recruit and train Malaysians so as to reflect the country’s population composition at all levels of employment.
X. CONDITIONS FOR CHARGING OF PROPERTY
14. In the event of foreclosure of property charged as in paragraph 4.19, the onus of the chargor are as follow:
14.1 to obtain the approval of FIC;
14.2 to give priority to Malaysian to acquire the property; and
14.3 to inform the chargee of the conditions as in paragraph 14.1 dan 14.2.
XI. COMPLIANCE PERIOD OF THE CONDITIONS
15. Equity condition imposed, if any, must be complied with within two (2) years from the date of FIC’s approval letter or from the date of commencement of the development of the property, whichever is earlier.
16. The compliance status must be reported to the FIC at least three (3) months before the compliance deadline and/or whenever requested by the FIC.
17. Share capital imposed, if any, must be complied with within six (6) months from the date of FIC’s approval letter.
18. The compliance period may be extended based on the merit of the case.
XII. PROCEDURES ON SUBMITTING APPLICATION
19. Except application for the extension of compliance period condition, the onus to submit the application is on the purchaser or vendor.
20. All applicants are fully responsible to the accuracy of the information submitted.
21. All proposals and communication will be treated in confidence.
Transfer Of Property And Acquisition Of Commercial Unit And Industrial Property
22. For proposed transfer of property to foreign interest and acquisition of residential unit, commercial unit and industrial property by foreign interest, each application must be accompanied by the following documents:
22.1 Form FIC A/2004;
22.2 One (1) copy of the relevant agreement;
22.3 One (1) copy of the purchaser’s Passport/ Identity Card;
22.4 One (1) copy of the vendor’s Passport/ Identity Card;
22.5 One (1) copy of the Master Title;
22.6 One (1) copy of the Individual Title;
22.7 Declaration Letter FIC SA/2004 signed by the purchaser for individual, or signed by the Chairman/Managing Director/ Chief Executive Officer of the company, any member of the company’s Board of Directors or any authorized personnel/individual for company (for acquisition/transfer of commercial unit and industrial property); and
22.8 any other document considered necessary by FIC.
Acquisition Of Property Valued At More Than 10 Million
23. For proposed acquisition of property valued at more than 10 million by local and foreign interests, each application must be accompanied by the following documents:
23.1 Form FIC H/2004;
23.2 Form Proforma I/2004 and/or Proforma II/2004;
23.3 One (1) copy of the relevant agreement;
23.4 One (1) copy of the letter/license from the ministries or Government agencies (if applicable);
23.5 One (1) copy of the approval letter on the same proposal from other ministries or Government agencies (if applicable);
23.6 One (1) copy of the confirmation letter from the Company Secretary on the company’s current equity structure;
23.7 One (1) copy of the latest valuation report (transaction which involves Government agencies must be accompanied with the valuation report from Jabatan Penilaian dan Perkhidmatan Harta); and
23.8 Declaration Letter FIC SA/2004 to be signed by the Chairman/Managing Director/ Chief Executive of the company or any member of the company’s Board of Directors or any authorized personnel/individual.
23.9 any other document considered necessary by FIC.
Acquisition/Disposal Of Property Valued At More Than 10 Million For FIC’s Notification
24. For proposed acquisition/disposal of property by local and foreign interests that requires notification to FIC, each application must be accompanied by the following documents:
24.1 Form Proforma I/2004 and/or Proforma II/2004;
24.2 One (1) copy of the relevant agreement;
24.3 One (1) copy of the purchaser’s Passport/ Identity Card;
24.4 One (1) copy of the vendor/disposer’s Passport/ Identity Card; and
24.5 One (1) copy of previous FIC’s approval letter; and
24.6 any other document considered necessary by FIC.
XIII. DECISION BY THE FIC
25. Decisions by the FIC on all complete applications will be given within 24 working hours for acquisition of commercial unit and industrial property by foreign interest and within 10 working days for other acquisition of properties.
XIV. APPEAL
26. If the applicant regrets with any FIC’s decision, he may make an appeal to FIC by submitting a completed Form FIC R/2004. All appeals will be considered based on merit of the case.
XV. REPEAL
27. Guideline On The Acquisition Of Properties By Local And Foreign Interests dated 21 May 2003 is repealed.
Kindly take note that the above was extracted from FIC – Economic Planning Unit of the Prime Minister’s Department
World Heading Recession?
We believe the Dow could fall further as investors are starting to realise that the subprime mortgage crisis is taking its toll on overall consumer sentiment in the US. ~ Gerald Ambrose, Managing director
Aberdeen Asset Management Sdn Bhd
The fall in the Dow is due to the US banks announcing their last quarter results. We were expecting the banks to register losses but the question was to what extent was the damage due to exposure to subprime mortgage debts. ~ Wee Kim Hong, Head of research, M&A Securities Sdn Bhd
To Read More, Click HERE
Capital Guaranteed Fund
In the midst of uncertain market sentiments, for the conservative investors, it is best to go for capital guaranteed yet with potential upside returns.
There are many investors who reverted to me saying the inflation in the country is going “crazy” and what was reported may not be accurate to what is happening in reality. Check out some recent rise below:-
* Utilities
a) Water from RM25.05 to RM26.85 (7.2%)
b) Electricity from RM95.20 to RM101.40 (6.5%)
* Transportation
a) Petrol increase from RM1.62 to RM1.92 per liter (18.5%)
b) Toll – Elite Highway from 13.6sen/km to 14.96sen/km (10%)
c) LRT – monthly pass from RM90 to RM100 (11.1%)
* Food
Wheat Flour increased from RM1.20 to RM1.35/kg (12.5%)
As for the salary worker, there just isn’t enough to cope with the rise. So, it is wise to make your money work harder for you. Do you agree with me?
I will write on the capital guaranteed fund on my next post. So, stay tune!
EPF – new schemes
More goodies coming. Here is the information, courtesy of The Star online.
All Employees Provident Fund contributors will, from Feb 1, be able to withdraw part of their funds and channel them to approved investment programmes.
Under the new scheme, contributors, irrespective of age, will be able to withdraw from Account One what is in excess of a “required amount” of savings as determined by the EPF and invest the money in unit trusts.
Currently, contributors can only do so if they have in excess of RM50,000.
This is one among a range of changes that the EPF is implementing in stages to make it easier for contributors to exercise the option to augment their savings for their retirement.
Using the tagline “Beyond Savings”, the EPF also hopes the changes will ensure that contributors have enough money for retirement.
Other changes include:
The amounts are based on the assumption that a person would need at least RM120,000 – or RM500 a month – from retirement at 55 to age 75.
He said a contributor could withdraw 20% of the amount in excess of the required amount for investments in unit trusts.
“For example, if a 25-year-old has RM20,000 in Account One, he can take 20% of the excess to invest once every three months. This is because his required amount is only RM9,000,” he said.
For those who have reached 55, Azlan said that from Nov 1 they would have several options: withdraw everything they have, go for monthly withdrawals of at least RM250 for at least one year, or withdraw at least RM2,000 at any one time.
Currently, members aged 55 can only choose to withdraw the entire sum, withdraw only annual dividends, or take out monthly amounts but for at least five years.
Azlan said there would also be changes to the procedures for age 50 withdrawals.
From Jan 1, 2013, those who reach 50 would only be able to withdraw any amount from Account Two if their Account One has at least RM90,000, the required amount for that age.
On using EPF withdrawals to pay housing loan instalments, Azlan said that although the money would be banked straight into the contributors’ accounts, it would be liasing with the banks to ensure that the loans are properly serviced.
“If they fail to pay their instalments for three months, the bank will inform us and we will stop payment to the contributors,” he said, adding that this scheme would start from Jan 1.
Azlan said that from Nov 1, those who had more than RM1mil in their savings could withdraw and invest the excess amount anytime. He said there were about 4,700 contributors who had more than RM1mil in their accounts.
