Conventional
Malaysia has a well-established fund management industry that caters for institutional investors, qualified and retail investors. With 80 fund managers, as of December 2019, Malaysia had 201 authorised wholesale funds and 694 unit trusts (of which 34% were Islamic) for retail investors. Islamic Fund management makes up 22% of total NAV. In terms of funds managed onshore the breakdown of investment focus is 49% in equity, 22% fixed income and 29% in others like money markets unit trusts and private equity. Sources of assets under management include unit trusts, corporate bodies, private funds and charitable organisations.
Market Developments
Private Retirement Schemes
Private retirement schemes (PRS) was first introduced in 2012 to supplement government led retirement schemes. Currently there are eight providers with 57 funds in total. Recognising the importance of saving for retirement, the Government introduced tax relief of up to RM3,000. This tax incentive is available for a period of 10 years, ending year 2021.
Employment Provident Fund i-Invest online
Members may transfer from their EPF Account 1 up to 30% of the amount in excess of basic savings to be invested in the qualified funds. The sales charge for purchases via i-Invest is capped at 0.5%. For the 2019/2020 period, a total of 382 funds were approved under the EPF MIS, nonetheless only 282 funds, including 9 new funds, from 19 FMIs qualified for offering.