08 August 2016

[EPF Account] Conventional vs Shariah

Today (08.08.2016) is the date of starting a new chapter for our retirement fund Employees Provident Fund (EPF) where members can start to register their applications for the Shariah account. To be eligible for Simpanan Shariah 2017, members must register their application by 23 December 2016 and subject to the availability of the RM100 billion fund.

Before making such an important move, let us understand the differences between conventional and Shariah account first.

How to register for Simpanan Shariah?
You need to attend personally at any EPF counter to submit your application and verify your thumbprint for identification. Just bring along your MyKad or Passport (non-Malaysian). Then, you will be notified of your application status 7 days before the effective date.

Am I allowed to utilise the eligible withdrawal amount from my Simpanan Shariah to fund for conventional housing loans or is it limited to Islamic housing financing?
Yes, members can use their withdrawal amount to fund conventional housing loans and Islamic housing financing, subject to the housing withdrawal terms and condition.

How about my existing unit trust funds which are conventional funds after converting to Simpanan Shariah?
Whatever already invested will remain status-quo if you didn't do any switching. However, after conversion, you can only invest into EPF approved Shariah-compliant unit trust funds for any subsequent withdrawals under EPF members investment scheme.

Please take note that this is an ONE WAY kind of conversion. You can't revert back once converted into Simpanan Shariah account.

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