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elliot_spencer
Joined: 26 Feb 2007
Posts: 495
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 Posted: Tue Jan 11, 2011 4:14 am Post subject: retirement plans in Malaysia |
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Hey guys. I will be moving to KL and wanted to know if any one knows if there is some sort of government retirement plan I can join or any private plans.
Thanks
Elliot |
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gloomyGumi
Joined: 29 Dec 2010
Posts: 353
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| Posted: Tue Jan 11, 2011 7:57 am Post subject: |
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| Need to know the same. Is there a minimum US$ requirement to get the permanent residence visa? |
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KayuJati
Joined: 21 Feb 2010
Posts: 313
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| Posted: Tue Jan 11, 2011 9:05 am Post subject: |
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Asked and answered before. The most current thread RE: this discussion is:
http://forums.eslcafe.com/job/viewtopic.php?t=85257
In his 2011 budget speech, the Malaysian PM did mention the desire to start another category that could be used as an avenue for retirement/PR. I forget the name but it was something like "foreign expert". If I find something online, I will provide a link to it. |
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elliot_spencer
Joined: 26 Feb 2007
Posts: 495
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| Posted: Tue Jan 11, 2011 10:48 am Post subject: |
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| sorry I mean in the sense of pension plans.. money u get when u retire. Is there a scehem like in Korea and Europe where we can pay into and benefit from when we are old or is a private one the way to go.. it might be hard to save into a private one when i'll only be making 5800rm before tax |
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KayuJati
Joined: 21 Feb 2010
Posts: 313
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| Posted: Wed Jan 12, 2011 12:45 am Post subject: |
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| elliot_spencer wrote: |
| sorry I mean in the sense of pension plans.. money u get when u retire. Is there a scehem like in Korea and Europe where we can pay into and benefit from when we are old or is a private one the way to go.. it might be hard to save into a private one when i'll only be making 5800rm before tax |
Oh yeah, Malaysia has the Employee Provident Fund (EPF) which employers can enroll their employees into. For example, my employer pays into it at a rate of 12% of my salary, and I contribute 11%. The 11% comes out of my base salary, whereas the 12% represents money over and above the base.
One can withdraw this money before retirement for items like a house purchase, higher education for children or medical expenses. Otherwise, it is distributed upon retirement. EPF is invested by the government into various government-linked companies or other types of investment. Back in the 90s, they were seeing annual returns in the 12-15% range, but now those are in the 4-6% range.
EPF is a requirement for employers regarding locals, but not a requirement for foreign workers. (I am not 100% on this; maybe only 95% certain.) But you should ask your employer about it. |
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elliot_spencer
Joined: 26 Feb 2007
Posts: 495
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| Posted: Wed Jan 12, 2011 1:28 am Post subject: |
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| Thanks for that, Can I ask are you a permanent resident in MY ? Is the 11% u pay extra to the tax u pay? |
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KayuJati
Joined: 21 Feb 2010
Posts: 313
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| Posted: Wed Jan 12, 2011 3:32 am Post subject: |
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| elliot_spencer wrote: |
| Thanks for that, Can I ask are you a permanent resident in MY ? Is the 11% u pay extra to the tax u pay? |
Yes, 11% of my base salary is deducted each month for EPF contribution, and the college kicks in 12% of the base, which isn't subtracted since it represents an amount over the base. Plus, income tax is subtracted, but that is only around 4%.
Not a PR (yet). |
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wailing_imam
Joined: 31 Mar 2006
Posts: 580
Location: Malaya
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| Posted: Wed Jan 12, 2011 5:20 am Post subject: |
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Singapore has CPF. You contribute 20% of your salary and the governmentn adds in an extra 14.5%. This is why Singaporeans have the highest savings in the world on average. Singapore also has one of the lowest tax rates in the world. Singaporeans use their CPF for health, housing and retirement funds. CPF money can be invested into unit trusts. Those that do not invest into unit trusts get an average of 4% interest.
Singapore also offers PR, though it is getting really difficult to get. |
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elliot_spencer
Joined: 26 Feb 2007
Posts: 495
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| Posted: Wed Jan 12, 2011 6:44 am Post subject: |
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| It's also difficult to get a job in Singapore |
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gloomyGumi
Joined: 29 Dec 2010
Posts: 353
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| Posted: Fri Jan 14, 2011 4:35 am Post subject: |
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| even if you're getting paid in local currency---ringgits, or wherever you are-- are you converting to the ailing US dollar if youre American? Or Canadan dollars if youre Canadian? What is a good long-run currency to hold for retirement? Can you retire in say India and still hold Canadian dollar accounts for the long-term? Or would it be wiser just to hold all your wealth in the local currency? |
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