EPF Shariah-compliant Savings Account Offers Competitive Dividends

By Farhana Abd Kadir

SHAH ALAM, Nov 13 (Bernama) -- The Employees Provident Fund (EPF) Shariah-compliant savings option not only can purify earnings but also provides contributors with competitive dividend yields that will not be detrimental to them, an economist said.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said through the Simpanan Shariah account, Muslim members have an opportunity to purify their earnings and retirement savings.

In terms of investment, he said, Simpanan Shariah also offers optimal returns.

“Therefore, efforts (by the EPF) to seek investment opportunities need to be intensified, and these opportunities should not be confined to the domestic market but also extended to the global market.

“Simpanan Shariah returns last year also reflect a competitive dividend. Hence, from a commercial standpoint, switching to Shariah-compliant savings is justified and won’t disadvantage members,” he told Bernama today.

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He was commenting on the move by the Selangor Islamic Religious Council (MAIS) to establish a strategic partnership with the EPF to strengthen the understanding of Shariah-compliant wealth and financial management among Muslims in the state.

The collaboration will also include efforts to promote the Simpanan Shariah account and to encourage Muslims to purify their earnings by contributing to a Shariah-compliant account.

It was reported that MAIS recorded a collection of RM2.7 million in non-Shariah-compliant funds last year, indicating that many individuals in Selangor were still involved with financial sources that are not Shariah-compliant.

Meanwhile, Dr Mohamad Idham Md Razak, the coordinator (Student Entrepreneurship Centre) at Universiti Teknologi MARA’s Malaysian Academy of SME and Entrepreneurship Development (MASMED), said that EPF’s Simpanan Shariah offers a major advantage in terms of peace of mind and moral conviction.

He explained that Shariah-compliant investments, unlike conventional investments, are made through instruments and sectors that adhere to Shariah guidelines, without involving elements of riba (usury), gharar (uncertainty) or maisir (gambling).

According to Mohamad Idham, Shariah-compliant investments are generally more prudent and ethical, focusing on real assets and businesses based on true values.

“Therefore, they are more sustainable in the long term although the returns may be slightly different from conventional investments,” he added. 

-- BERNAMA