New online system can process 500,000 transactions expected
KUALA LUMPUR: The number of withdrawal applications to the Employees Provident Fund (EPF) for unit trust investments is expected to reach 500,000 this year due to the introduction of a new online system.
Federation of Investment Managers Malaysia (FIMM) president Tunku Datuk Ya’acob Tunku Abdullah said EPF members’ could now submit their applications online via the Elektronik-Pilihan Pelaburan Ahli (E-PPA) system.
“We expect to process 500,000 applications this year and aspire to exceed the one million mark in 2015,” he told reporters after the launch of the E-PPA system yesterday. In 2007, there were 330,000 applications.
Tunku Ya’acob said as at March, the net asset value (NAV) under the EPF Members Investment Scheme (EPF-MIS) stood at RM15bil, or 7.4% of the total NAV of the unit trust industry of RM204bil.
Tunku Datuk Ya’acob Tunku Abdullah (left) and Tan Sri Azlan Zainol at the launch on Tuesday.A joint effort between FIMM and the EPF, the E-PPA system cuts the application processing time to two days as compared to between 15 to 20 days under the manual system.
Tunku Ya’acob said the online application service was currently provided free of charge for EPF-MIS members. “I hope that the withdrawals by EPF-MIS members can be made on monthly basis instead of a quarterly basis now,” he said.
However, EPF chief executive officer Tan Sri Azlan Zainol, who was present at the launch, said the quarterly withdrawal for EPF-MIS members would be maintained for the time being.
On the market outlook, Tunku Ya’acob said the equity market was pretty strong now amid temporary fear sparked by bond defaults in certain countries in Europe.
“The global economy is also looking quite good; job numbers are improving in the US and China’s economic growth has also been robust,” he said.
Source: The Star online
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