KUALA LUMPUR (March 9): The Securities Commission Malaysia (SC) is considering allowing Private Retirement Scheme (PRS) contributors to invest in exchange-traded funds (ETFs) as part of efforts to broaden their investment options.<\/p>\n
Its chairman Datuk Mohammad Faiz Azmi said the move comes amid concerns over retirement adequacy and shifting investor preferences, noting that many young Malaysians are increasingly investing in ETFs listed overseas.<\/p>\n
\u201cSo, ETFs for example. Here we have 13 ETFs. And when you talk to the younger ones, they’re all investing in ETFs abroad. Why are you investing abroad? If I bring the ETF here or mirror it here, then you don\u2019t have to buy it in US dollars. This is the thing that we need to look at \u2014 what the market wants,\u201d he said.<\/p>\n
\u201cETFs allow us to create products that are intrinsically cheaper than funds and meet the thematic needs of investors,\u201d he told reporters on the sidelines of the launch of the SC\u2019s five-year Capital Market Master Plan for 2026-2030 on Monday.<\/p>\n
Under the SC\u2019s current PRS guidelines, funds may invest in transferable securities, money market instruments, deposits with financial institutions, derivatives and real estate.<\/p>\n
The SC said earlier in its report that it is reviewing the structure of the PRS to give individuals greater control over how their retirement savings are invested.<\/p>\n
The SC plans to enhance the PRS account framework \u2014 a voluntary retirement savings scheme designed to complement savings held in the Employees Provident Fund (EPF), the country\u2019s main mandatory pension system \u2014 by allowing contributors more direct access to a wider range of asset classes to support long-term retirement goals.<\/p>\n
Commenting on geopolitical developments in the Middle East, Mohammad Faiz said Malaysia is unlikely to face significant risks if tensions remain temporary.<\/p>\n
\u201cNo war is good. We have seen the amount of damage and destruction and we really want it to stop as quickly as possible,\u201d he said.<\/p>\n
However, he noted that Malaysia\u2019s position as an oil-producing nation provides some buffer against supply disruptions.<\/p>\n
\u201cWe are lucky. We are actually an oil-producing nation. So yes, we do import, but we still have a lot of oil,\u201d he said, adding that the situation could change if the conflict escalates further.<\/p>\n