PRS (Part 1): Private Retirement Schemes in Malaysia – What’s the fuss?

If you’ve been keeping up with any news source in Malaysia, it is quite likely that you would have come across the PRS buzz. If you haven’t or if you have questions about it, we’ll get you up to speed, with our PRS series of articles.

In this PRS series, we will cover the basics, risks, benefits, options and more so you can decide if PRS is right for you.

What is PRS?

PRS stands for Private Retirement Schemes. Essentially, PRS offer funds for individuals to invest in with the objective of saving for retirement. Much like EPF, it allows for employer contributions as well. However, PRS participation is voluntary and offers greater flexibility and investing options.

How it works?

Of course, there is more to PRS than this. But we’ll get to that later in the series, in which we will cover the risks, benefits, options and important terms.

PRS (Part 2): Private Retirement Schemes Termin

Before we get to the nitty gritty of PRS, we thought we should start with introducing some terms you will come across frequently when PRS-shopping.

PRS

Private Retirement Schemes. Voluntary, private pension funds, similar to EPF.

PRS Provider

Securities Commission (SC) approved fund providers. Typically, established investment banks. Currently there are only 8 approved providers:

• American International Assurance Bhd
• AmInvestment Management Sdn Bhd
• CIMB-Principal Asset Management Bhd
• Hwang Investment Management Berhad
• ING Funds Bhd
• Manulife Unit Trust Bhd
• Public Mutual Bhd
• RHB Investment Management Sdn Bhd

PRS Consultant

Individuals who are licensed to sell PRS products. These consultants need to:

• Be registered with FIMM (Federation of Investment Managers Malaysia)
• Have no adverse record
• Be at least 21 years old
• Have passed the PRS examination by FIMM

PPA

Private Pension Administrator. Regulated by the SC, they primarily act as a record-keeping, resource and research centre for all things related to PRS. You can manage all of your PRS fund contributions with different providers through the PPA.

Trustee

An independent party that protects investors by ensuring the fund is operated according to its objectives and requirements. It also holds the assets that the fund invests in on behalf of the investors.

SC

Securities Commission. SC is a regulatory body empowered by the law to supervise the PRS industry. They also regulate other investment related products and providers.

Fund Options or Fund Plans

Investment options made available to you by the different providers. These options will differ according to how much risk you are willing to take on.

Unit Price

The unit price of a PRS fund is similar to the concept of a share price. Unit price is determined based on the worth of the fund, and can fluctuate from time to time. PRS units are priced daily.

Distribution

A term used to describe the income component of the investment. Distributions from your PRS is like dividends you receive from shares. As with dividends, distributions from PRS funds are not guaranteed.

私人退休金（PRS）

Captured from:-

http://blog.imoney.my/prs-part-1-private-retirement-schemes-in-malaysia-what-is-the-fuss/

http://blog.imoney.my/prs-part-2-private-retirement-schemes-terminology/