EPF Encourage Use of Electronic Transactions for Contribution Payments
MALAYSIA: The Employees Provident Fund (EPF) is working with Bank Negara Malaysia (BNM), Malaysian Electronic Clearing Corporation Sdn Bhd (MyClear) and local banks to minimise the usage of cheques and cash by encouraging the use of electronic payments. Campaigns to educate employers and encourage them to convert to using electronic payments, organised by the EPF and BNM are ongoing. Banks have meanwhile began imposing charges for transactions carried out using cheques. All these efforts are aimed at encouraging employers to use electronic payment methods before the use of cheques and cash is totally stopped at all EPF counters and banks. MyClear is a wholly-owned subsidiary of BNM and operator of the Financial Process Exchange (FPX).
This programme is in line with EPF’s objectives to reduce dependence on counter services, expedite mobile transactions and to improve the overall experience in dealing with the EPF. Employers will find that using the FPX system will make processing EPF contribution payments easier and more secure. Employers are given the option of making payments either through the i-Akaun portal or the internet banking options offered by commercial banks.
Transactions can be done around the clock, while fast crediting to individual accounts and cost savings are the main considerations when using the electronic payment methods. The FPX provides employers with payment information via a single channel, which facilitates ease of report reconciliation for multiple banks. There is no registration required to become a user of FPX.
According to Rule 4 of the EPF Regulations 2001, the EPF board can set any monthly contribution payment method which is deemed most suitable when needed. EPF is now preparing employers to use the electronic payment method in stages to avoid any influx of employers to the EPF offices to learn the use of this new method when it is enforced. The EPF is Malaysia’s premier retirement savings fund, providing basic financial security for retirement.
The EPF is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions. As a customer-focused organisation, the EPF delivers efficient and reliable service for the convenience of its members and registered employers. The EPF continues to play a catalytic role in the nation’s economic growth, consistent with its position as a leading savings institution in Malaysia. MyClear aims to accelerate Malaysia’s growth and prosperity, through the provision of world-class payment systems and financial market infrastructures. It designs, builds and operates world-class payment systems and financial market infrastructures that safely, reliable and efficiently enable the functioning and development of Malaysia’s financial system as well as the economy as a whole.