01/03/2026

NATIONAL 3 theSun on Sunday MAR 1, 2026

Good way to develop saving habit among teenagers

PETALING JAYA: The Employees Provident Fund (EPF) announced a 6.15% dividend for 2025, slightly lower than last year’s 6.3%, for both conventional and shariah savings accounts, with total payouts of RM79.6 billion. Its CEO Ahmad Zulqarnain Onn said EPF recorded a total distributable income of RM82.7 billion for the financial year ended Dec 31, 2025, marking a 9.5% increase from RM75.5 billion PETALING Allowing Malaysians to open an Employees Provident Fund (EPF) account from as early as age 14 could reset how the next generation thinks about money – turning retirement into an early-life habit, say experts. UniKL Business School economic analyst Assoc Prof Dr Aimi Zulhazmi Abdul Rashid said the move has the potential to hardwire the habit of saving early, stressing that it would only deliver real impact if backed by meaningful financial education. He said financial literacy should begin well before the teenage years, with primary school pupils introduced early to how wealth is generated, grown, protected and eventually distributed, and not merely told to put money aside. “This scheme also sits alongside other savings options offered by government-linked investment companies such as Permodalan Nasional Berhad and Tabung Haji as well as products from private financial institutions. Financial expert Prof Datuk Dr Nik Maheran Nik Muhammad described the move as a step towards strengthening long-term financial resilience. She said it represents a shift from planning for retirement reactively to actively building wealth, which is particularly relevant today as some teenagers are already earning through the digital and gig economy. “Even modest contributions made consistently can grow substantially over time, giving young contributors a significant head start in building retirement adequacy and financial security.” Nik Maheran said if paired with proper financial education, an EPF account could help teens develop discipline, practice delayed gratification and think long-term, turning abstract financial concepts into real-life experience. “Teens should start small but remain consistent, treating EPF as untouchable long-term savings.” To encourage participation, Nik Maheran suggested that EPF could introduce low minimum contributions of RM10 to RM20, with flexible auto-debit options, allowing families to save steadily without financial strain. “Parents who co-contribute or match their children’s savings should be considered for government incentives or tax deductions to increase participation.” “Overall, this initiative should be positioned not merely as an administrative reform but also as Ű BY QIRANA NABILLA MOHD RASHIDI newsdesk@thesundaily.com JAYA:

part of a broader national effort to cultivate a culture of early financial responsibility. “With the right education, incentives and digital tools, it could help shape a generation that values long-term wealth and financial independence.” Universiti Putra Malaysia Putra Business School associate professor Dr Ida Md Yasin said opening EPF accounts for children as young as 14 may deliver little educational value if parents are the ones funding them. “Children only learn when they save money they earn or receive themselves – even small amounts kept in an account under their own name. “If the funds come directly from parents or the EPF, they are not learning how to manage money. They simply know the money exists.” “At 14, most children are not working. So, the purpose of saving a portion of earnings in EPF does not apply. If we want to encourage financial literacy in youths, regular banks are sufficient for them to start saving and learning about money management.” Ida said parents could still contribute but early EPF accounts may not provide the intended educational value. In Malaysia, the employment of children and young persons is governed by the Children and Young Persons (Employment) Act 1966, which was updated in 2019. EPF initiative has potential to hardwire inclination early but must be backed by meaningful financial education, says expert

Under the law, children below 15 may work from the age of 13 in light duties that do not compromise their health or schooling, while young persons are defined as those aged between 15 and 17. Equities main driver of 2025 returns: CEO

contributed RM600 million, posting a 1.6% RoI. Performance for some assets was affected by foreign exchange translation as the ringgit strengthened against the US dollar.” Ahmad Zulqarnain also said the total gross investment income stood at RM79.2 billion, including unrealised mark-to-market gains and losses arising mainly from currency movements. – By QIRANA NABILLA MOHD RASHIDI

representing total investment income, with an RoI of 4.3%. He said declining yields during the year enabled fund managers to realise capital gains prudently while positioning the portfolio for sustainable future returns. “The real estate and infrastructure segment recorded RM1.6 billion in income with a 4.8% RoI on a constant currency basis, while money market instruments 33% of

“However, overall returns on investment (RoI) eased to 7.9% amid global market volatility and softer domestic market conditions. “Private equity, which accounts for about 8% of equity holdings, delivered a stronger RoI of 10.5%,” he said when announcing the 2025 EPF dividends yesterday. Ahmad Zulqarnain said fixed income instruments, largely Malaysian government securities, generated RM26.3 billion,

in 2024. He said the fund’s investment assets expanded to RM1.41 trillion, up 12.8% from RM1.25 trillion previously, supported by portfolio income and net contributions amounting to RM66.5 billion. “Equities remained the main driver of returns in 2025, contributing RM50.7 billion, or 64% of total investment income, surpassing the RM49.9 billion recorded in 2024.