Will EPF mandatory Shariah savings for Muslims be enforced?

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EPF Syariah Savings Will Not Be Made Mandatory for Muslim Contributors

The Malaysian government has no intention of mandating Syariah-compliant savings for Muslim Employees Provident Fund (EPF) contributors. Instead, the government is actively encouraging Muslim contributors to opt for Syariah savings through incentives and educational efforts. This approach aims to increase participation in Syariah savings without imposing a mandatory policy.
Encouragement Through Incentives and Education

While a mandatory policy is not on the horizon, the government is committed to promoting Syariah savings. This is being facilitated through a series of incentives and detailed explanations concerning Syariah financial instruments. The objective is to provide Muslim contributors with a clearer understanding of the benefits and principles behind these savings options, thereby fostering voluntary adoption.
Dividend Rates Offer Parity

The EPF's announcement of a 6.30 percent dividend rate for both conventional and Syariah savings for 2024 serves as a further encouragement. This parity in dividend rates aims to alleviate any concerns that Muslim contributors might miss out on returns by choosing the Syariah option, thereby making the transition or initial choice more attractive.
EPF's Performance Driven by MADANI Economy Framework

The EPF's recent achievements, including the aforementioned dividend rates, are underpinned by strong investment confidence, particularly within the MADANI Economy framework. As of December of the previous year, 63 percent of the EPF’s total investments, valued at RM782 billion, were directed towards the domestic market, reflecting an 11 percent increase compared to 2023. Investment on Bursa Malaysia also saw a significant rise of 12.9 percent.

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Will EPF mandatory Shariah savings for Muslims be enforced?

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