EPF sees more members migrating to Simpanan Shariah in 2018

The Employees Provident Fund (EPF) expects to see more members migrating to the shariah-compliant retirement scheme from 2018 onwards.

This is due to the positive dividend to be announced in 2017, said Chief Executive Officer Datuk Shahril Ridza Ridzuan.

"We are of the view that this shariah-compliant retirement scheme-- Simpanan Shariah -- is set to become a significant mover on the Islamic finance landscape as it is expected to boost demand for Islamic financial products.

"Moreover, Simpanan Shariah converges with the principles of socially responsible investing, another area garnering momentum in the investment world," he told a press conference after announcing the fund''s 2016 Annual Report here today.

Shahril said upon the close of registration on Dec 23, 2016, a total of 635,037 members had switched from their conventional savings to Simpanan Shariah with RM59.03 billion from the initial RM100 billion allocation taken up.

He said with about 45 per cent of investment assets being shariah-compliant, prior to the introduction of the scheme, EPF expected to grow these assets by an average RM25 billion a year.

--BERNAMA