GROUP 10

MADAM HANISSAH BINTI HAMZAH

Islamic Finance (PFS 2253)

Semester: August 2021

ASSIGNMENT 2 :
KUMPULAN WANG SIMPANAN PEKERJA (KWSP)

NAME MATRIC NO.

ANIS FARIHA BINTI MOHAMMAD 4201004293
MOGAN MARIAPPAN 4193004081
NUR ALIA NAJWA BINTI ARZMI 4201003221D
PAVESHNA A/P KUMARAN 4192000621
SARMINITHA A/P KRISHNA MURTHI 4193001521
INTRODUCTION

 Employees' Provident Fund (EPF) helps an employee to achieve a better future by

safeguarding for their retirement.
 To ensure that the Simpanan Shariah is managed in accordance with Shariah, a
Shariah governance framework has been designed to regulate the EPF Simpanan
Shariah.
 Starting from January 1, 2007, a member's EPF funds have been divided into two
accounts, each with its own portion of savings and withdrawal options.
 BACKGROUND OF STUDY

 Employees' Provident Fund or known as Kumpulan Wang Simpanan Pekerja

(KWSP) is a federal statutory that manages the compulsory savings plan and
retirement planning for private sector workers in Malaysia.
 Membership of the EPF is mandatory for Malaysian citizens employed in the private
sector, and voluntary for non-Malaysian citizens.
 Malaysian EPF was established in 1951 pursuant to the Employees Provident Fund
Ordinance 1951, under the National Director of Posts
 The EPF Act 1991 requires employees and their employers to contribute towards their
retirement savings, and allows workers to withdraw these savings at retirement or for
special purposes before then
FUNCTION OF EPF

 To receive and collect contributions from members and employers.

 To invest the EPF contributions for members basic savings.

 To return the savings to members or eligible nominators through withdrawal

process.
CONTRIBUTION OF EPF TO ISLAMIC INDUSTRY

 The simpanan shariah provide avenue for Muslim members to have a Shariah-
compliant retirement savings for their consumption including in performing Hajj
and Umrah as well as for their family without any doubt on the source of fund.
 To ensure members’ savings will not be used for purposes that contravene with
Shariah principles
 To enable members to provide halal fund to be distributed to the heirs as
inheritance.
 Minimum investment exposure to financial sector as opposed to Simpanan
Conventional.
 Invest in ethical investments that are compliant with Shariah principles
CONCLUSION

 KWSP which means as been called as EPF ACT 1991 is the best platform that been
introduce by the government. In this case, its been a financial platform to all
employers in Malaysia that can use their money after their retirement.
 Financial freedom plays an important role in ensuring an individual’s spending
pattern. Once an individual achieves financial freedom, definitely he or she will have
a higher quality of lifestyle as compared to others who does not.
 The retirees will financially restricted if have not achieve financial freedom. In order
to reach their financial goals, they attempt to be more focus on what they are
supposed to do without wasting their time or effort on working age that still have in a
person.
REFERENCES

 https://en.wikipedia.org/wiki/Employees_Provident_Fund_(Malaysia)
 https://www.kwsp.gov.my/member/simpanan-shariah
 https://www.comparehero.my/retirement/articles/epf-savings
VIDEO LINK

 https://drive.google.com/file/d/1sdY2kEzq5BEYp3ipWtLqMbwBFY2bcvIP/view?usp
=sharing