01 April 2017

RM1,000 PRS Youth Incentive (Enhanced version)... It's not April Fool !!!

Although today is April fool, we at Finance Malaysia here talking about this seriously REAL info which is too good to be true. Once again, it's true and let's read on. First, you must understand what is Private Retirement Scheme (PRS) here and then our previous post on PRS Youth Incentive. (Old version)

Enhanced Version with 100% *Guaranteed Return???
Yes. Announced during Budget 2017, government is kind enough to enhanced further the youth incentive given to eligible PRS contributors which is already running since 2014. Then, what's the criteria now?
  1. Malaysian citizen 
  2. Aged between 20 - 30 (before 31st birthday)
  3. Invest a minimum of RM1,000 (lump sum or accumulative) into a single PRS fund within year 2017-2018
  4. Haven't get any PRS youth incentive before... (sorry to those already get the RM500 incentive before this)
Because of this RM1,000 PRS investment, government will automatically contribute another RM1,000 into your PRS account. That's why this is what we called 100% *Guaranteed Return !!!

Photo from PPA website

Why there is this * symbol ???

Every good things must come to an end, and this kind of incentive is for year 2017 & 2018 only and subject to first come, first get basis until the full allocation of RM165mil being disbursed. Meaning there are only 165,000 youths are able to grab it. So, it's guaranteed subject to availability of the allocated fund.

Let's act fast and grab it !!!

How do I receive the RM1,000 incentive?

  • It will not be given to you directly in cash. Instead, it will be credited into your PRS sub-account A of the qualified PRS fund. Then, it will be converted into units of that fund.

When will the RM1,000 incentive being credited?

  • The incentive will be credited on bi-annual basis and PPA expects to receive and process the pay-out within 4 months from the cut off date of 30th June and 31st December each year.
  • Example, if you contributed a total of minimum RM1,000 by June 2017, the RM1,000 incentive will be credited into your PRS account by October 2017.
  • Otherwise, you have to wait for the next cycle which is by December 2017 and get the incentive by April 2018.

RM1,000 not much also what... ☺☺
Don't look down on this RM1,000 lump sum investment. If qualified, your PRS account will automatically has a total of RM2,000 generating certain return for you over long-term period. 

Let's use a financial calculator to count, assuming age 25 start and never invest again for 30 years until retirement age 55. The money will snowball to RM20,125 and RM34,898 respectively if the annual return was 8% and 10% respectively. You did nothing though !!!

This article was written by Finance Malaysia blog with the inputs by Alex Yeoh, a licensed financial planner and corporate PRS adviser. Once again, we would like to thanks Alex Yeoh for his valuable input. You may contact him via email alexyeoh@vka.com.my for more info. Thanks.


  1. Thanks a lot for the post, thanks to Alex Yeoh, thanks finance Malaysia blogspot

  2. thanks Malaysia and thanks to this Author who share this amazing blog, we seriously want to join you

  3. Until now, almost end of May, still havent received the incentive? I invested by 31 Dec 2018


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