Malaysia’s private retirement scheme or PRS membership increased to more than 680,000 as of end-March from 671,000 at the end of last year, though assets under management dropped to 8.6 billion ringgit (US$2.17 billion) from 8.8 billion ringgit amid the war in the Middle East.
Sharifatul Hanizah Said Ali, executive director of Securities Commission Malaysia (SC), announced the figures in her keynote speech at the Private Pension Administrator (PPA) fund awards.
The PPA is the central administrator of the PRS, a voluntary long-term savings scheme designed to help Malaysians supplement their retirement funds.
Sharifatul Hanizah said the decline in assets managed by PRS funds reflect broader market movements in recent months since the Middle East conflict erupted.
“This is a reminder that PRS operates within global capital markets, and that short-term fluctuations are part of the landscape. What matters though is the long-term direction, and that direction remains positive,” she said.
She described the performance of PRS funds as “encouraging”. As of end-February, she said, nearly 55% of the scheme’s growth and moderate funds delivered annualised returns of more than 7% a year over a three-year period, and 57% of conservative funds recorded three-year annualised returns of more than 4.5% a year.
“These are meaningful outcomes which compare favourably with other long-term investment vehicles available to Malaysians. This is a fact that should be better known to the market,” she said.
She also said the SC and the PPA are reviewing the fee framework across the fund management industry, with a view towards rationalising fees.
“Focus will be on conservative funds, where fee levels should be proportionate to the expected return profile of the strategy,” she said.
