The Employees Provident Fund (EPF) yesterday signed a Memorandum of Understanding (MoU) with Grab Malaysia to encourage its community of ride-sharing driver-partners to save for their retirement through Caruman Sukarela Insentif Persaraan (i-Saraan), a voluntary retirement savings programme with the EPF.
EPF Chief Executive Officer Datuk Shahril Ridza Ridzuan said, “We would like to encourage the community of Grab driver-partners to voluntarily sign up as EPF members and save for their retirement with the EPF. Our members are provided with a secure savings option, as the EPF has a proven track record of sustainable, above-inflation returns which will enhance the value of their savings over the long term.
“By contributing to the scheme, Grab driver-partners can enjoy the same benefits as an EPF member, such as annual dividends on their retirement savings, tax relief, death benefit, and access to our Retirement Advisory Service at no cost. On top of annual dividends and benefits, the Government will top up an additional 15 per cent of annual contributions to a maximum of RM250 per year until 2022 for members below age 55.”
i-Saraan, previously known as the 1Malaysia Retirement Savings Scheme (SP1M), is designed to allow individuals who are self-employed or those who receive no regular monthly income, such as taxi drivers, petty traders, farmers, freelancers, as well as those working in the gig economy, to save for their retirement while enjoying the same benefits as EPF members.
Effective 16 August 2018, Grab will also be providing a contribution of five (5) per cent on the amount contributed by selected driver-partners subject to a maximum of RM80 a year, in addition to the Government incentives provided.
Commenting on the collaboration, Grab Malaysia Country Head, Sean Goh said, “Grab Malaysia is proud to partner the EPF in supporting the Government’s initiative to create a more holistic social protection ecosystem, starting with ensuring the retirement wellbeing of our Grab community of driver-partners. In fact, based on a survey with our driver-partners, 75 per cent of them have expressed interest to save for their retirement specifically through this collaboration. We therefore want to encourage them to take charge and be in the driver’s seat of their future financial security.”
Statistics by the Institute of Labour Market Information and Analysis (ILMIA) revealed that out of 22 million of Malaysia’s working population, a total of 7.1 million are actively contributing to the EPF and 1.7 million are covered by the public pension scheme. The remaining 13.2 million comprise individuals who are self-employed or freelancers and outside the labour force not covered by any formal social protection programme in the country.
About the Employees Provident Fund (EPF)
The Employees Provident Fund (EPF) is Malaysia’s premier retirement savings fund, providing basic financial security for retirement. The EPF is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions. As a customer-focused organisation, the EPF delivers efficient and reliable services for the convenience of its members and registered employers. The EPF continues to play a catalytic role in the nation’s economic growth, consistent with its position as a leading savings institution in Malaysia.
Grab is one of the most frequently used Online to Offline (O2O) mobile platforms in Southeast Asia, providing the everyday services that matter most to consumers. Commute, eat, deliver shopping - and pay with one e-wallet. Grab believes that every Southeast Asian should benefit from the digital economy, and the company provides access to safe and affordable transport, food and package delivery, mobile payments and financial services. Grab currently offers services in Singapore, Indonesia, the Philippines, Malaysia, Thailand, Vietnam, Myanmar and Cambodia. For more information, please visit http://www.grab.com
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