Inspiring investment interest for retirement

The seminar saw full house participation from students and staff (first row, starting fourth from left): Shamini, Husaini Hussin, Dr Sia, and A. A. Deepa

Private Pension Administrator (PPA) in collaboration with UTAR Faculty of Accounting and Management (FAM), Centre for Sustainable Development & Corporate Social Responsibility in Business (CSDCSR), and UTAR Medical and Health Sciences Society held “Jom! Save in PRS – PRS@ Campus 2019, Financial Literacy Programme” on 11 November 2019 at UTAR Sungai Long Campus.

The two-hour programme was an initiative by PPA to create awareness of the Private Retirement Scheme (PRS) to university students. The programme aimed to educate youth on financial literacy, inculcate good saving habits upon entering working life and emphasise the importance of starting early to save for their retirement.

Present at the seminar were PPA CEO Husaini Hussin, FAM Dean Dr Sia Bee Chuan, Investor Education and Channel Management, Securities Market Bursa Malaysia Vice President A A Deepa, PPA Learning and Engagement Manager Mohamed Farith Mohamed Jamal, Kenanga Investors Berhad Vice President Michelle Wong, RHB Asset Management Group Agency Manager Mohamad Hafiz bin Nor Azizan, Public Bank Mutual Berhad Group Agency Manager Shirley Yap, Principal Asset Management Berhad Relationship Manager Mohd Fakhrul Hisham Ahmad, UTAR Division of Human Resource Director Marchie Lim Pin Sim, Head of Department of Accountancy Shamini Kandasamy, esteemed guests, staff and students.

“Financial literacy supports individual well-being. Smart financial planning such as budgeting, saving for emergencies and preparing for retirement, help individuals to enjoy better lives while weathering financial challenges. Effective financial education is not just about teaching students about financial products or performing financial calculations. It also involves teaching them the essential skills and concepts they will need to make major financial choices,” said Dr Sia in her welcome remarks.

“I believe that by partnering together and leveraging on each other’s knowledge and experience, financial literacy level can be advanced,” she added, mentioning the strong bond between UTAR and PPA, including the MoU that was signed between both parties in 2018.

The seminar began with a talk titled “A Glimpse into Bursa Malaysia” by A. A. Deepa. She gave an introduction to investment and preparations needed before leaping into the investment world. “Some matters to be asked before investing include the risk that comes with the investment, types of return, how quick can you get the return, long or short term investment, and ways to reduce the risk,” said A A Deepa. She also provided a guide to choose a great company to invest by looking for consistent profit growth, little debt, strong cash flow, and high dividend payout.

A A Deepa also introduced real estate investment trust (REITs) as an option for students and fresh graduates to participate in the investment world. A REIT is a company that owns, and in most cases, operates income-producing real estate. REITs own many types of commercial real estate, ranging from office and apartment buildings to warehouses, hospitals, shopping malls and hotels. “Investing in properties can be very expensive, REITs make it ideal for new investors because you can start with smaller capital, so it is like you own a part of the shopping mall, perhaps one brick of the building,” said A A Deepa, ending it with a joke.

According to A. A. Deepa, there is no perfect portfolio for every investor, but a right portfolio requires the investor to know the risk preference, amount of capital and time duration for investment

Taking over for the second session was Mohamed Farith who introduced PRS to the students. “An average life expectancy of Malaysians is about 75 years. After retiring at 55 years old, we are expected to need at least 20 years of sufficient retirement savings,” said Encik Mohamed Farith. The sufficiency is one of three retirement concerns that he highlighted. Other two were adequacy (two-third replacement income is recommended for retirement) and sustainability of living standards as it rises in the future.

Offering a simple yet reliable plan for retirement, Mohamed Farith urged the public to save 10 per cent or more of their monthly salary in PRS, aside of the compulsory contributions made in other schemes such as Employees Provident Fund (EPF) and Retirement Fund (KWAP). PRS also ensures safety as it is regulated by Securities Commission Malaysia.

Mohamed Farith recommends lower deposit but contributed on a regular basis into PRS rather than a big lump sum amount as the former is comparatively better

Mohamed Farith (far right) conducted a light exercise to freshen up the mood of the audience

To celebrate the audiences, PRS providers, namely Principal Asset Management Berhad, Kenanga Investors Berhad, Public Mutual Berhad and RHB Asset Management Sdn Bhd gave away “PRS Treats” worth RM100 in the form of PRS contribution to 40 lucky participants. To encourage participants to register for PRS, a minimum contribution of RM50 (normal minimum contribution is RM100) was open to the participants who registered online on that day.

“They should start young to invest because of the compounding effect of investment. PRS offers the management of the investment by age group. As age increases, the risk decreases. However, if you wish to play safe with low-risk investment, you can still do so,” said Michelle Wong. “Start with RM100 a month. The amount is reasonable for students and fresh graduate to start. PRS has a lot to offer so those who wish to join, do keep your eyes open for the incentives and rewards that they offer,” she added.

Lucky draw winners of PRS Treat sponsored by Kenanga Investors Berhad with Michelle Wong (back row, fifth from left) and Dr Sia (back row, sixth from left)

On the reason to choose Principal Asset Management Berhad over other providers, Mohd Fakhrul Hisham said, “Our fund performance is the best in the industry. Even better, one of our fund’s perform far off better compared to others.” Principal Asset Management Berhad was formerly known as the CIMB-Principal Asset Management Berhad. It offers the widest range of PRS funds.

Lucky draw winners of PRS Treat sponsored by Principal Asset Management Berhad with Mohd Fakhrul Hisham (back row, fifth from left) and Dr Sia (back row, sixth from left)

“One of the unique features of RHB is that we are the only asset management company that caters for both conventional and Sharia-compliant. We do not mix Shariah and conventional at all, in fact, we have two CEOs. The separation, however, does not mean that we have a different portfolio, instead, we share the expertise. As a result, the Sharia-compliant fund may perform better than the conventional fund,” said Mohamad Hafiz as he explained what his team has to offer.

“We are here to create awareness. With PRS, we hope that they understand more about financial literacy and make plans for their future as early as possible. Investment is always about time and as youths, they definitely have more time than the rest. So, do not waste time,” advised Mohamad Hafiz. He also welcomes anyone to be in touch with his team for consultation.

Lucky draw winners of PRS Treat sponsored by RHB Asset Management with Mohamad Hafiz (back row, fourth from right) and Dr Sia (back row, fourth from left)

According to Shirley Yap, Public Mutual Berhad offers the confidence in their name as well as the warm service to the clients, “Our brand name speaks for itself. We have a variety of funds, including local and oversea funds. For every three months to six months we will contact our clients and update them with the fund performance and other information. We will also remind them to save more if they have extra money and remind them of the importance of passive income. To have a significant passive income you have to keep accumulating the money.”

Lucky draw winners of PRS Treat sponsored by Public Mutual Berhad with Shirley Yap (back row, fourth from right) and Dr Sia (back row, fourth from left)

 

 

Visitors enrolling and making inquiries at PRS providers' booths

 

Free health screening by UTAR Medical and Health Sciences Society


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