3 Different Types of PRS Distributors

Finance Malaysia believes that after a series of publicity and roadshow by various parties, especially PPA and PRS providers, you should know what is Private Retirement Scheme (PRS) is all about. Since then, we received many inquiries on whom should potential contributor consult with and why?

It brings us to this topic, and hopefully, by understanding the different types of PRS distributors, investors could make their decision confidently. There is no right or wrong. It's down to your own preferences and of course, the trust level you have a PRS consultant. So, who are they?

PRS Funds List Update and How to make PRS Transfer ? (Dec 2015)

Since the first PRS fund was launched in year 2012, many Malaysian already invested in it because of the PRS Tax Relief and PRS Youth Incentive given by the government. After awhile, many of us started to compare different funds from different PRS providers. It's very normal. So, the information below may helps you.

First, there are still 8 approved PRS providers in the market. But, number of funds already increased to a total of 50 PRS funds for us to choose from. CIMB-Principal has the most number of funds with 10, while RHB has the least at 3 only. Please refer to below picture.

[PRS Nomination] What should I take note?

From 1 August 2017 onwards, every Private Retirement Scheme (PRS) contributors can make a nomination on your PRS savings. The purpose of making a nomination is to make it easy for your loved ones to receive your gift in the event of your passing on. Without your nomination, your loved ones may encounter difficulties when making a withdrawal from your PRS account, which may be a lengthy process.

How to make a nomination???

PRS Tax Relief EXTENDED to Year 2025

This is the only type of investment in Malaysia, which entitled you (individual investor) to personal tax relief.

✖ Not shares

✖ Not unit trust

✖ Not property

💖 It's Private Retirement Scheme (PRS) 💖

Saving for your retirement comes with more savings through PRS Tax Relief. Whether you are newly enroled or looking to top up your account, you will love the PRS Tax Relief of up to RM3,000 annually.

Do you understand the PRS Framework and its Lingo?

Before jumping into the bandwagon of private retirement schemes (PRS), we should understand the PRS framework first. What is the structure behind the scene? Does our invested money in safe hands? Who are the regulators? These were the few typical questions we should find out. No worries, all of these will be answered here... (yeah, give us a "Like")

• Manufacturer?
  PRS are offered by approved PRS Providers. Each PRS will include a range of retirement funds from which individuals may choose to invest in, based on their own retirement needs, goals and risk appetite.
• Book-keeper?
  The PPA functions as a record keeping and resource centre for data on all transactions performed by contributors. It will facilitate transactions and promote efficient administration. The PPA will also act as a resource centre for data and research relating to the PRS industry in Malaysia.
• Safe-keeper?
  The assets of each PRS will be segregated from the PRS provider and held by an independent Scheme Trustee under a trust. Yes. It must be "independent" to safeguard investors money.
• Regulator...
  All of the above mentioned parties, namely the PRS providers, the PPA, the Scheme Trustees and distributors of PRS were being regulated and supervised by Securities Commission (SC). This was to ensure the proper functioning of the PRS industry and protects members, via prudential and investor protection requirements.

After all, still blur about the term used above? No worries. Finance Malaysia Blog take the initiative to explain the PRS lingo against that of Unit Trust for ease of understanding:

Source: Private Pension Adminstrator (PPA)

For more PRS info, you may contact Alex Yeoh (alexyeoh@vka.com.my), a licensed financial planner who can distributes products from multiple PRS providers. Thank you.

RM500 PRS Youth Incentive. What's that and How to Grab it?

While most of us already know what is Private Retirement Scheme (PRS), how about the RM500 PRS Youth Incentive? If you never heard of, you should understand it before regretting. If you already heard of, have you grab it? If no action taken yet, why?

Unveiling the BEST investment in Malaysia...

RM500 PRS Youth Incentive. What's that and How to Grab it?

While most of us already know what is Private Retirement Scheme (PRS), how about the RM500 PRS Youth Incentive? If you never heard of, you should understand it before regretting. If you already heard of, have you grab it? If no action taken yet, why?

Unveiling the BEST investment in Malaysia...

Is it SAFE to Invest in Private Retirement Scheme (PRS) ?

This is one of the common question asked by potential PRS contributors. First, I want to emphasize that PRS is a long-term investment for the purpose of retirement planning. In investment case, long-term means you already using the most powerful method to reap a good return. Anyway, many contributors still want to treat PRS as some kind of short-term investment. I got the answer for you.

Basically, PRS is very similar to unit trust investment. The underlying structure and investment philosophy were the same actually. No wonder many people perceived PRS is another unit trust scheme. Yes, you're correct to a certain extent.

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???

What are the TAX benefits from Private Retirement Scheme (PRS)?

According to Securities Commission of Malaysia, tax incentives are provided to both employers and individuals for the first 10 years from the year of assessment 2012; in addition to the tax deduction permitted for EPF contributions:

Amount of Tax Savings by individuals for PRS contributions

For Individual:

Tax relief of up to RM3,000 per year will be given for contributions made within that year. This is on top of existing tax relief already enjoyed by taxpayers. How much can you save from tax?

Let's look at the table above which illustrates the amount of tax saving an individual get after personal tax relief and RM6,000 EPF + Life Insurance tax relief.

Assuming a maximum RM3,000 PRS relief, the amount of tax saving depends on your level of income. For high tax bracket individuals, you can save up to RM780 annually!!!

For the Employer:

25% Tax for Private Retirement Scheme (PRS) ?

Christmas is coming to town, but before that, it was also the time when many people are rushing to enroll/top up their Private Retirement Scheme (PRS). Why? Main reason is they want to enjoy the tax relief given of up to Rm3,000 per year. However, social media has over-took the whole atmosphere with the purported 25% tax on PRS. Is this true?

All I want for Christmas is Tax-Free...

Tax Relief from Life Insurance YOU must know

Want to get more tax saving? Please read on…

Although this article is somewhat considered late for individual tax-payers this year, this could be useful next year anyway.

When you buy insurance, besides getting the comprehensive protection and a worthwhile investment that will keep you financially stable should the unexpected happen, one more feature are very important for every tax payers.

Under Malaysian Income Tax Act 1967, you will also enjoy tax relief benefits provided. These tax incentives are given by Malaysia government to encourage us to own a protection plan, thus, inducing a better life planning among Malaysians.

Oppsss... actually this can and that one is cannot?

[PRS] Zero Tax Penalty for Housing and Healthcare Withdrawals

Following the recent Budget 2020 announcement that PRS members are allowed to make pre-retirement withdrawals for purposes of healthcare and housing without any tax penalty. (instead of the normal 8% tax penalty, click here to know in details)

For Immediate Family.
Can?

How Private Retirement Scheme (PRS) works actually?

Many people are still in the dark on how actually Private Retirement Scheme (PRS) works. In order to clear everyone's mind, we hope this post was timely for those who may want to entitle for extra tax relief of up to RM 3,000 given by PRS before 31st December 2012. To further explain the whole scheme, Finance Malaysia Blog was glad that Alex Yeoh, a licensed financial planner is able to share with us on this matter.

From Alex Yeoh:

First, we must know that PRS is a voluntary scheme for the purpose of retirement saving. For ease of understanding, let us look at the picture above which explain the process into two parts. Initially, contributions were made by us into the PRS fund that we select. It was as flexible as  normal unit trust investments (shown in upper part). Contribute anytime any amount as you like, without any specific intervals. As simple as that.

When can I withdraw the money?

NEW Public Mutual PRS Fund: PRS Strategic Equity and PRS Equity

In addition to its existing PRS funds comprising 3 conventional core funds and 3 shariah core funds, Public Mutual right now is offering another 2 non-core PRS funds for investors to choose from.

What's the differences between this two new funds?

What is Private Retirement Schemes (PRS) ?

Are you ready for your retirement life? If not, what and how are you going to do before it is too late? These are a few critical questions Malaysians should ask us without further procrastination. With increasing life expectancy and rising living standards, many Malaysians find that their savings are inadequate to meet their retirement needs.

Private Retirement Schemes (PRS) form an integral feature of the private pension industry with the objective of improving living standards for Malaysians at retirement through additional savings of funds. As long-term investment vehicles, PRS are designed to help enhance adequacy and expand coverage of retirement benefits to all segments of the population. It complements Malaysia's mandatory retirement savings scheme - EPF.

Voluntary?

How to get your PRS Tax Relief statement from PPA ? (April 2013)

In conjunction with the NEW tax relief available from YA2012, many Private Retirement Scheme (PRS) contributors are wondering how can they get the tax statement for income tax filing.

To address your concern, here you go... (If you don't know what are we talking about, please find out "What is Private Retirement Scheme?")

To recap, contributions into a PRS scheme can enjoy a tax relief of up to RM3,000 from YA2012 - YA2021. If you did contribute some money into a PRS scheme in 2012, congratulations, you're entitled to PRS tax relief for YA2012. If you haven't, no worry, you still got time to start contributing before the end of this year.

Back to the topic, please follow these few easy steps to get it:

What is the implication of SST on financial products & services? (Aug 2018)

The Ministry of Finance has announced that 6% of Service Tax will come into effect in Malaysia on 1st September 2018, repealing the Goods and Services Tax (GST) which was first introduced as 6% on 1st April 2015 and further reduced to 0% on 1st June 2018.

Unlike GST which taxes all goods and services unless an exemption is provided, Service Tax is only charged on certain prescribed services made by prescribed taxable persons.

For Life Insurance products, Service Tax of 6% will be chargeable on the premiums of products below:

Personal Income Tax for YA2012

Finance Malaysia hopes this article doesn't come late to give you some info on Personal Income Tax filling for year of assessment 2012. Maybe due to the general election, which had diverts our attention lately. Lol. Anyway, do remember to file your income tax before 30th April oh!!!

Well, here is the list of Personal Tax Relief for YA2012. And, I would like to highlight to you, in RED color words, some changes/differences from previous year.

Personal Tax Relief for YA2012

• Item No.11:
  This would replace Item 10 from YA2012-YA2017 with higher amount of RM6,000
• Item No.23:
  Private Retirement Scheme (PRS) is the NEW item which can help you reduce tax further with additional RM3,000 tax relief from YA2012-YA2021. As such, Item No.22 would be replaced until after YA2021.

All other items remained the same. Do reduce your tax payable by maximizing the tax relief amount. Remember to keep a record and file it properly. Happy tax filling. Thanks.

Blue color: Tax relief that we can adjust easily in our daily life

Green color: Tax relief for property not rented out with S&P signed between 10/03/09-31/12/10

Light red color: Tax relief related to child

Yellow color: Tax relief related to life insurance premium

2016 Personal Income Tax Relief... Figure out first before e-filing !!!

It's income tax season now, you can perform your e-filing or m-filing for YA2016. No worry. Finance Malaysia is here with you during these difficult times :)

Below shows the complete list of tax relief for your reference: