Implementing gold investment for Malaysian Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) was established under the Provident Fund Act 1991 (Act 452) which provides retirement benefits to its contributors under an efficient and trusted management appointed by the government. Both private and public sector employees are allowed to contribute; whereby E...

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Main Authors:	Nurshuhaida Abdul Razak, Aisyah Abdul-Rahman, Salmy Edawaty Yaacob
Format:	Article
Language:	English
Published:	School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia 2016
Online Access:	http://journalarticle.ukm.my/9810/ http://journalarticle.ukm.my/9810/ http://journalarticle.ukm.my/9810/1/3x.geografia-si-feb16-nurshuhaida-edam.pdf

id	ukm-9810
recordtype	eprints
spelling	ukm-98102016-12-14T06:50:54Z http://journalarticle.ukm.my/9810/ Implementing gold investment for Malaysian Employees Provident Fund (EPF) Nurshuhaida Abdul Razak, Aisyah Abdul-Rahman, Salmy Edawaty Yaacob, The Employees Provident Fund (EPF) was established under the Provident Fund Act 1991 (Act 452) which provides retirement benefits to its contributors under an efficient and trusted management appointed by the government. Both private and public sector employees are allowed to contribute; whereby EPF acts as a fund manager on behalf of the contributors and provides a guaranteed minimum dividend of 2.5 per cent per annum. Majority of EPF investments are of low risk financial instruments; and this is done as to ensure the contributors enjoy the minimum returns. As majority of EPF contributors are Muslims, two critical issues have risen, especially when EPF seems to be ignorant by not investing in shariah compliant instruments on top of its uncompetitive returns. As gold investment has so far shown to produce high long term investment return, we examined the suitability of introducing shariah compliant gold investment saving account as one of the EPF portfolio investment instruments. We suggested that EPF allocates around 15 per cent of its investment portfolio in shariah compliant gold account for the benefit of EPF contributors as to maintain their purchasing power after retirement. As gold hedges against inflation, investing in shariah– compliant gold investment account solves the dilemma of Muslim EPF contributors in non-permissible investment. School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia 2016-02 Article PeerReviewed application/pdf en http://journalarticle.ukm.my/9810/1/3x.geografia-si-feb16-nurshuhaida-edam.pdf Nurshuhaida Abdul Razak, and Aisyah Abdul-Rahman, and Salmy Edawaty Yaacob, (2016) Implementing gold investment for Malaysian Employees Provident Fund (EPF). Geografia : Malaysian Journal of Society and Space, 12 (2). pp. 27-38. ISSN 2180-2491 http://www.ukm.my/geografia/v2/index.php?cont=a&item=2&thn=2016&vol=12&issue=2&ver=loc
repository_type	Digital Repository
institution_category	Local University
institution	Universiti Kebangasaan Malaysia
building	UKM Institutional Repository
collection	Online Access
language	English
description	The Employees Provident Fund (EPF) was established under the Provident Fund Act 1991 (Act 452) which provides retirement benefits to its contributors under an efficient and trusted management appointed by the government. Both private and public sector employees are allowed to contribute; whereby EPF acts as a fund manager on behalf of the contributors and provides a guaranteed minimum dividend of 2.5 per cent per annum. Majority of EPF investments are of low risk financial instruments; and this is done as to ensure the contributors enjoy the minimum returns. As majority of EPF contributors are Muslims, two critical issues have risen, especially when EPF seems to be ignorant by not investing in shariah compliant instruments on top of its uncompetitive returns. As gold investment has so far shown to produce high long term investment return, we examined the suitability of introducing shariah compliant gold investment saving account as one of the EPF portfolio investment instruments. We suggested that EPF allocates around 15 per cent of its investment portfolio in shariah compliant gold account for the benefit of EPF contributors as to maintain their purchasing power after retirement. As gold hedges against inflation, investing in shariah– compliant gold investment account solves the dilemma of Muslim EPF contributors in non-permissible investment.
format	Article
author	Nurshuhaida Abdul Razak, Aisyah Abdul-Rahman, Salmy Edawaty Yaacob,
spellingShingle	Nurshuhaida Abdul Razak, Aisyah Abdul-Rahman, Salmy Edawaty Yaacob, Implementing gold investment for Malaysian Employees Provident Fund (EPF)
author_facet	Nurshuhaida Abdul Razak, Aisyah Abdul-Rahman, Salmy Edawaty Yaacob,
author_sort	Nurshuhaida Abdul Razak,
title	Implementing gold investment for Malaysian Employees Provident Fund (EPF)
title_short	Implementing gold investment for Malaysian Employees Provident Fund (EPF)
title_full	Implementing gold investment for Malaysian Employees Provident Fund (EPF)
title_fullStr	Implementing gold investment for Malaysian Employees Provident Fund (EPF)
title_full_unstemmed	Implementing gold investment for Malaysian Employees Provident Fund (EPF)
title_sort	implementing gold investment for malaysian employees provident fund (epf)
publisher	School of Social, Development and Environmental Studies, Faculty of Social Sciences and Humanities, Universiti Kebangsaan Malaysia
publishDate	2016
url	http://journalarticle.ukm.my/9810/ http://journalarticle.ukm.my/9810/ http://journalarticle.ukm.my/9810/1/3x.geografia-si-feb16-nurshuhaida-edam.pdf
first_indexed	2023-09-18T19:55:47Z
last_indexed	2023-09-18T19:55:47Z
_version_	1777406519070949376

Implementing gold investment for Malaysian Employees Provident Fund (EPF)

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