Don't rely on EPF alone, diversify investments, says academician
Malaysia's Employees Provident Fund (EPF), on March 1, announced a 6.3 per cent dividend for its Conventional and Syariah savings for 2024.
While this offers some relief to EPF members, it should serve as a reminder of the need for proactive financial planning, said an academician.
Paul Anthony Maria Das, a senior lecturer at the School of Accounting and Finance at Taylor's University, in his commentary that was sent to Twentytwo13, added that relying solely on EPF savings is no longer sufficient for long-term financial security.
"Individuals must take a hands-on approach to wealth management to stay resilient against economic fluctuations and inflation," Maria Das said.
"With rising living costs and economic uncertainties, passive savings is no longer an option."
He said to build financial resilience, individuals should explore, among others:
• Stocks, bonds, Real Estate Investment Trusts (REITs), and mutual funds for diversification.
• Private Retirement Schemes (PRS) for additional tax benefits and compounding advantages.
• Multiple income streams such as dividends, rental income, or side businesses.
• Blue-chip dividend stocks for steady income and capital growth.
• Exchange-Traded Funds (ETFs) for diversified market exposure.
• Gold and commodities as inflation hedges.
• Insurance-based savings plans for financial security.
"Young professionals should maximise EPF benefits while diversifying investments by allocating 10-20 per cent of their income to voluntary contributions, and 15-30 per cent to other investment vehicles."
Maria Das highlighted that for an individual with RM200,000 in EPF, a 6.3 per cent dividend yields RM12,600 annually, compared to RM10,000 at a 5 per cent rate.
"While the difference may seem small, it significantly impacts long-term wealth accumulation. Regardless of the rate, maintaining a diversified investment portfolio is essential for financial security."
"The 6.3 per cent EPF dividend for 2024 is a positive outcome, but it should not lead to complacency. Strategic wealth management – through diversification, informed decision-making, and adaptation to economic shifts – is key to long-term financial stability."
"A well-rounded financial plan extends beyond EPF, ensuring security in an ever-changing economic landscape," he added.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
11 hours ago
- Yahoo
Health care has been a job market bright spot, but Trump's budget bill looms over the industry
Proposed cuts to health insurance programs in the budget bill being pushed through Congress by President Donald Trump could put hundreds of thousands of health care jobs at risk — jeopardizing one of the few notably strong areas of the U.S. job market. Congressional Republicans are advancing a budget plan that would cause nearly 8 million people on Medicaid to lose their health insurance coverage, according to estimates by the Congressional Budget Office, with an additional 2 million people to lose coverage through the Affordable Care Act if Congress remains on track to let health insurance tax subsidies expire at the end of the year. Less funding for Medicaid and fewer people with health insurance would mean a drop-off in doctor's office visits, prescription refills and medical procedures — and, as a result, fewer workers needed to support those types of services. It could lead to the loss of nearly 500,000 health care jobs over the next decade, according to an analysis by George Washington University and the Commonwealth Fund. The expiration of the ACA tax subsidies, which were enacted in 2021, would result in the loss of an additional 140,000 jobs, a separate analysis from George Washington University found. 'Hospitals will close, health centers will close, pharmacies in some parts of the country will close because they will lose revenue,' said Leighton Ku, director for the Center for Health Policy Research at George Washington University, who worked on the analyses. 'There are going to be job losses, and we're talking about middle class jobs being lost.' That would be a blow to one of the strongest, steadiest areas of the job market in recent years. Health care accounted for nearly half of the jobs added in the U.S. in May, according to the Bureau of Labor Statistics. Last year, around half of the 2.2 million jobs added to the economy were in health care-related sectors, according to an analysis by S&P Global. That has helped offset job cuts and stagnant growth in other sectors of the labor market, like retail and manufacturing. 'Right now, a lot of what is driving these positive headline numbers and bolstering the labor market is the health care sector,' said Allison Shrivastava, an economist with job listing site 'It's something that has been a constant. The health care sector has been a pretty big mainstay as the rest of the labor market has cooled.' The health insurance provisions are part of a broader spending bill that has passed the House and is currently making its way through the Senate. The legislation, which Republicans have dubbed the "Big Beautiful Bill Act," would cut around $800 billion from Medicaid, the health insurance program for the poor and disabled, in order to help offset some of the $4 trillion in tax cut extensions in the bill for individuals and corporations. A version of the bill currently in the Senate, which plans to start voting on the legislation next week, would go even further in reducing spending on Medicaid, by including a provision to limit states' use of taxes on hospitals and other health care providers that help states fund their share of the Medicaid program. The cuts would take a particular toll on health care providers in rural areas, where patients are more likely to be insured through Medicaid than those in metro areas. Researchers at Georgetown University found that 40% of children in small and rural towns receive their health insurance from Medicaid. Already, one-third of all rural hospitals in the country are at risk of closing because of financial difficulties, according to a report this month from the Center for Healthcare Quality and Payment Reform. Also at risk are Community Health Centers, which employ more than 300,000 workers and receive a portion of their funding from the federal government. Those centers, which serve at least 32 million mostly lower-income patients a year, get about 40% of their revenue from Medicaid. 'Our health centers operate on razor-thin margins, so any kind of disruption in payments or reimbursements, even for a short time, can have a significant impact,' said Joe Dunn, chief policy officer for the National Association of Community Health Centers. 'About 40% of health centers are in rural America, and oftentimes they are the only primary care in that community. We have health centers in towns of a few hundred people, and there may not be any other kind of health care network there.' Absent any policy changes from Congress, the health care sector had appeared to be on track for continued growth — and largely isolated from wider concerns about tariffs and an economic slowdown. The number of job postings for doctors and surgeons on are about 90% higher than their pre-pandemic levels, listings for home health aides are up 46%, and openings for nurses are up 16%, Shrivastava said. Health care job postings on represent 27% of all active job listings and health care postings are beginning to make up a larger share of new job postings, according to data from ZipRecruiter. A loss of that hiring momentum from funding cuts would leave one less positive driver for the job market. 'Right now, the labor market as a whole is arguably in a stagnant position,' said Shrivastava. 'People are not wanting to leave their jobs, they're nervous about whether or not they'll be able to find another job, and companies aren't really looking to hire. Health care has been the exception to that.' This article was originally published on
Yahoo
a day ago
- Yahoo
Woowa Brothers agrees to waive commissions on small orders
South Korea's Woowa Brothers and vendor associations have reached an agreement to waive all commissions for orders under Won10,000 (around $7.27) and to provide tiered support for delivery fees. The move is part of a broader plan to offer up to Won300bn in backing to vendors up to 2028. Woowa Brothers announced the agreement, mediated by the Democratic Party's Euljiro Committee, with the Korea Franchisee Union and the Association of Fair Platform Business Owners. It is in response to concerns that vendors have been disproportionately affected by high costs for smaller orders, which could result in them bearing more than 40% of the order amount in delivery fees and commissions. It also includes a waiver of commission for the vendor-funded part of the discount coupons issued by franchise HQ. Online delivery platform Baedal Minjok (Baemin) is operated by Woowa Brothers. The delivery platform had excluded discounts funded by restaurants or franchisees from commission calculations, and this new agreement expands these exemptions. The support will extend to orders between Won10,000 and Won15,000, with certain methods of support to be determined later. According to Woowa Brothers, the agreement incorporates further measures including creating a specialised centre to handle vendor inquiries, refining the compensation claim system, reducing the complexity of vendor-related administrative tasks, and introducing a direct communication between vendors and delivery personnel to improve vendor convenience. These initiatives were conceived following dialogues with vendor associations that commenced in late March. Woowa Brothers' annual support could reach up to Won100bn, totalling up to Won300bn over three years, if these were implemented. In spite of the additional support, Baemin will uphold its present commission rate structure, which ranges from 2% to 7.8% under the current tiered rate plan based on vendors' Baemin1 Plus revenue. Woowa Brothers CEO Bum Seok Austin Kim said: 'By supporting small orders amid the rise in single-person households, we hope to provide convenience and benefits to consumers, while helping vendors grow the number of orders and reduce cost burdens.' In 2023, Baemin decided to cease its operations in Vietnam due to intense competition and economic headwinds. "Woowa Brothers agrees to waive commissions on small orders" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Yahoo
a day ago
- Yahoo
Xiaomi EV manufacturing expansion secures Beijing land
Xiaomi has secured a 50-year lease for a 485,134m2 plot of land in Beijing, China, with plans to use it for smart connected car and components projects, reported Reuters. The acquisition, valued at 635m yuan ($88m), was announced by the Beijing municipal planning and natural resources commission. This strategic move positions Xiaomi as one of the few automakers in China expanding capacity in a market currently facing overcapacity challenges. The company's new YU7 sports utility vehicle is garnering more interest than the SU7 sedan, with customers facing up to a 51-week wait on Xiaomi's app. Xiaomi also launched the SU7 sedan last year, surpassing Tesla's Model 3 in monthly sales since December. The success of the SU7 is accelerating Xiaomi's entry into the competitive EV market. Xiaomi has increased its EV delivery target for the year to 350,000 vehicles, up from the previous goal of 300,000. The company initially planned to produce 300,000 vehicles annually at its EV factory, which will be constructed in two phases. Orders for the YU7 will be taken starting at the end of June, with the launch previously scheduled for July. In March, Xiaomi entered into a placement and subscription agreement to raise $5.5bn, involving the sale and issuance of 800 million shares. This upsized deal from the initially planned 750 million shares is aimed at accelerating Xiaomi's EV manufacturing initiatives. The shares, priced at 53.25 yuan ($7.34) each, represent about 3.2% of Xiaomi's existing issued share capital and approximately 1.2% of the voting rights as of the announcement date. "Xiaomi EV manufacturing expansion secures Beijing land" was originally created and published by Just Auto, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
