PowerPoint Presentation

st
AS AT 31 DECEMBER 2017

2

Table of Content



INTERNAL STATISTICS

Members’ Profile 6
Active and Inactive Members
Active Members by Generation
Active Members’ Savings by Age Band
Members’ Composition by State and Wage Range

Employers’ Profile 10
Employers and Defaulters
Employers’ Size
Employers’ Composition by State and Industry

Operations 13
Contribution, Withdrawal, Net Contribution and Nominations
Dividend Rate and Amount Distributed
Types of Withdrawal

Investment 14
Financial Position
Return on Investment, Fund Management and Assets vs. Income

Transactions 15
Online and Offline Transactions
i-Akaun Subscriptions
SP1M: New Registration, Transactions, and Contribution Amount

Customer Experience 17
Customer Engagement Index and Social Media Queries
RAS Interaction and Calls Statistics
Services Channels

Staff Composition 18
Non-executive Staff
Executive Staff
Cost per Employee
Medical Cost per Employee


3

EPF KEY INITIATIVES STATUS

Status of Initiatives 22
34 Initiatives to Support 5YRP 2018-2022 23



EXTERNAL STATISTICS

National Accounts 25
GDP Growth
GDP per Capita PPP
Gross National Income (GNI)

Demographics and Labour Market 26
Male and Female Life Expectancy
Population
Labour Force and Participation Rate
Unemployment Rate

Inflation 27
Consumer Price Index (and YoY)
GDP Deflator Growth
Household Debt

Interest Rate and Foreign Exchange 28
Real Interest Rate
Exchange Rate – Average per USD
Real Effective Exchange Rate Index

Real Estate and Communications 29
House Price Index
High Technology Exports
Broadband Penetration Rate
Internet User






4

INTERNAL


STATISTICS


































5

MEMBERS’ PROFILE


2013 2014 2015 2016 2017

ACTIVE
MEMBERS 6.5 6.7 6.8 6.9 7.1
(mil.)

INACTIVE
MEMBERS 7.4 7.5 7.8 7.9 6.7
(mil.)

TOTAL
MEMBERS 13.9 14.2 14.6 14.8 13.8
(mil.)

(Source: Business Intelligence System)


Active Members by Generation in 2017 (%)



Gen Z, those born in
60.1% the mid-1990s or
2016: 58% later, have started
entering the
5.5% workforce since June
2016: 12% 2017.
(Malaysia Digest)
34.4%
2016: 30%
Active members
constitutes 39.3% of
total members
including dormant
Baby Boomer Gen X Gen Y & accounts, as at
& Above Gen Z
December 2017.
(Astro Awani News)



6

Active Members’ Savings by Age Band


AGE NO. OF MEMBER TOTAL MEMBERS’
(years) MEMBERS COMPOSITION SAVINGS SAVINGS
(mil.) (%) (RM bil.) (%)


BELOW 30 3.0 42.3 52.8 10


31-40 1.9 26.8 149.8 27

41-50 1.3 18.3 205.3 37


51-55 0.5 7.0 85.0 15


ABOVE 55 0.4 5.6 61.3 11

TOTAL 7.1 100.0 554.2 100


(Source: Business Intelligence System)
Basic Savings Active Members by Age Profile



13%
2016: 25%

64%
2016: 67% 18% 42%
2016: 38% 2016: 23%
36%
2016: 33%
27%
2016: 47%


Achieved Not Achieved < 30 31-40 41-50 51 >


7

Members’ Profile by State (2017)


MEMBER REGISTRATION ACTIVE INACTIVE TOTAL
STATE (‘000) (‘000 (‘000)

JOHOR 223.7 128.4 352.1

KEDAH 118.0 63.4 181.4

KELANTAN 66.7 39.4 106.1

MELAKA 76.5 32.4 108.9

NEGERI SEMBILAN 67.1 30.6 97.7

PAHANG 78.5 44.1 122.6

PULAU PINANG 148.0 62.0 210.0

PERAK 144.0 75.4 219.4

SELANGOR 1,003.0 424.1 1,427.1

TERENGGANU 74.0 45.7 119.7

SABAH 185.4 103.6 289.0

SARAWAK 195.8 97.5 293.3

WP (KUALA LUMPUR) 4,726.1 5,530.6 10,256.7

UNKNOWN 3.7 2.5 6.2

TOTAL 7,110.5 6,679.7 13,790.2









8

Members’ Profile by Wage Range (2017)


WAGE RANGE ACTIVE
(RM monthly) (mil.)

< 1,000 2.00


1,001 – 4,000 3.80


4,001 – 10,000 1.00


10,001 – 25,000 0.30

ABOVE 25,000 0.07


TOTAL 7.17
































9

EMPLOYERS’ PROFILE


2013 2014 2015 2016 2017


EMPLOYERS 517 530 536 542 495
(‘000)



DEFAULTERS 6.7 6.3 6.0 5.9
(‘000) 7.8


(Source: Business Intelligence System)




Profile by Size of Employees (‘000)








14.7

83.9 1.2
0.2










< 10 11-100 101-500 501 >








10

Employers’ Profile by State (2017)


ENFORCEMENT NUMBER OF EMPLOYERS
STATE (‘000)

JOHOR 65.3

KEDAH 22.3

KELANTAN 9.3

MELAKA 14.6

NEGERI SEMBILAN 20.3

PAHANG 17.6

PULAU PINANG 34.5

PERAK 34.8

SELANGOR 121.6

TERENGGANU 9.5

SABAH 35.2

SARAWAK 42.6

WP (KUALA LUMPUR) 67.4

TOTAL 494.9












11

Employers’ Profile by Industry (2017)


EMPLOYER INDUSTRIAL NUMBER OF EMPLOYERS
SECTOR (‘000)

CONSTRUCTION 25.50

MANUFACTURING 54.60

AGRICULTURE 12.00

SERVICES 304.30

FINANCIAL & BUSINESS SERVICES 26.30

TRANSPORT & COMMUNICATION 25.80

GOVERNMENT 13.90

OTHERS 32.50

UNKNOWN 0.03

TOTAL 494.93








TOTAL














12

OPERATIONS


2013 2014 2015 2016 2017


CONTRIBUTION 53.6 57.2 60.0 61.6 61.6
(RM bil.)



WITHDRAWAL 35.5 34.0 45.1 47.4 49.4
(RM bil.)


NET
CONTRIBUTION 18.3 23.4 15.6 14.7 16.1
(RM bil.)

NOMINATIONS
(‘000) xx 316.1 279.3 340.3 503.3


(Source: EPF Quickstat and JKAP)

Types of Withdrawal for 2017 (RM bil.)



53% Projected growth in
2016: 54.5% contributions in line
with increasing active
12% members.
2016: 14.5%

18% Net contribution
2016: 13.5% showed declining
trend – may impact
17% fund size and
2016: 5.5% sustainability.

Retirement Investment
Housing Others

13

INVESTMENT


2013 2014 2015 2016 2017

TOTAL
INVESTMENT ASSETS 589.9 636.5 684.5 731.1 791.5
(RM bil.)
NET INVESTMENT
INCOME 32.5 37.8 40.7 37.9 49.8
(RM bil.)

TOTAL INCOME 32.7 38.0 40.9 38.1 49.4
(RM bil.)


TOTAL EXPENDITURE 1.2 1.2 1.2 1.3 1.4
(RM bil.)


NET INCOME 31.5 36.8 39.7 36.9 48.0
(RM bil.)

RETURN ON
INVESTMENT 7.0 7.3 7.5 7.1 7.3
(%)

INVESTMENT GROWTH 7.3 8.3
(%) 11.4 11.1 8.4


DIVIDEND RATE 6.4 6.8 6.4 5.7 6.9 (C)
(%) 6.4 (S)

48.1
AMOUNT DISTRIBUTED 31.2 36.7 38.2 37.1
(RM bil.) 44.2 (C)
4.0 (S)
(Source: JKAP)




14

ROI Internal vs. External
Foreign / Domestic Fund Management




FOREIGN FOREIGN
30% 44%


IFM IFM
85% 76%

DOMESTIC DOMESTIC
70% 56%

EFM
EFM 24%
15%
Asset Income Asset Income





Total Investment Assets vs. Gross Income

ASSET EXPOSURE INCOME
(%) (%)

MONEY MARKET 4.0 2.0

PROPERTIES 4.0 6.0

EQUITIES 42.0 59.0

BOND 50.0 33.3











15

CUSTOMER EXPERIENCE

2015 2016 2017
ONLINE TRANSACTIONS
(mil.) 30.2 42.2 48.2


OFFLINE TRANSACTIONS
(mil.) 16.3 19.0 15.8


TOTAL TRANSACTIONS
(mil.) 46.5 61.2 64.0


i-AKAUN SUBSCRIPTIONS 2.0 3.9 5.6
(mil.)

(Source: EPF Quickstat)
Skim Persaraan 1Malaysia (SP1M)

2013 2014 2015 2016 2017

NEW SP1M
REGISTRATION 8.4 6.9 6.4 4.5 4.7
(‘000)

SP1M
TRANSACTIONS 122.7 118.6 108.4 97.7 88.4
(‘000)

SP1M
CONTRIBUTION 70.9 75.6 67.2 60.0 57.3
AMOUNT
(RM mil.)

(Source: EPF Quickstat and CMC)
SP1M statistics expected to increase in line with incentive of up to
15% of annual contribution of RM250 (previously 10% and RM120)
as announced in 2018 Budget.



16

CUSTOMER EXPERIENCE


2013 2014 2015 2016 2017

CUSTOMER
ENGAGEMENT 94.8 94.5 94.9 94.7 94.9
INDEX

SOCIAL MEDIA
QUERIES 5.7 12.2 14.1 17.3 13.6
(‘000)

RAS
INTERACTION - 2.8 6.4 12.7 36.6
(‘000)

INBOUND
CALLS 764.9 845.5 954.2 1,011.1 1,371.4
(‘000)

OUTBOUND
CALLS 115.1 114.1 115.4 110.7 123.8
(‘000)
DROPPED
CALLS 11.2 8.4 42.5 335.5 376.5
(‘000) (%)

(Source: EPF Quickstat and CMC)

Services Channels (as at Dec 2017):

EPF Branches 68
Mobile Team 15
Retirement Advisory Services (RAS) 21
Self-service kiosks 3,380

RAS gaining traction from members by twofold, attributed to
increase in RAS awareness.



17

STAFF COMPOSITION

2014 2015 2016 2017
NON-EXECUTIVE 4,331 4,302 4,361 4,462
STAFF

EXECUTIVE 1,121 1,146 1,234 1,333
STAFF

TOTAL STAFF
5,452 5,448 5,595 5,795
COST PER EMPLOYEE 150 164 158 -
(RM ‘000)
MEDICAL COST
PER EMPLOYEE 8.4 9.7 11.1 -
(RM ‘000)



Staff Composition by Gender (2017)
2014 2015 2016 2017

FEMALE STAFF
3,025 3,058 3,167 3,292

MALE STAFF
2,427 2,390 2,428 2,503


Staff Composition by Generation (2017)

2014 2015 2016 2017
BABY BOOMERS
1,110 923 905 xx

GEN X
3,232 3,230 3,123 xx
GEN Y
1,110 1,295 1,567 xx




18

Staff Composition by State (2017)


STATE NUMBER OF EMPLOYEES



JOHOR 382

KEDAH 176

KELANTAN 109

MELAKA 120

NEGERI SEMBILAN 148

PAHANG 129

PULAU PINANG 261

PERAK 258

SELANGOR 1499

TERENGGANU 110

SABAH 269

SARAWAK 235

WP (KUALA LUMPUR) 2047

PERLIS 37

LABUAN 15

TOTAL 5795






19

Staff Composition by Grade (2017)


GRADE NUMBER OF EMPLOYEES



31, 31A, A 5

B1, B2 15

C1, C2 19

D1, D2 103

E1, E2 566

F 625

G1 297

G2 41

G3 2,375

G4 305

G5 1,197

G6 247

TOTAL 5,795















20

EPF


KEY INITIATIVES


STATUS
































21

STATUS OF INITIATIVES AS AT 31 DECEMBER 2017



50 INITIATIVES

ONGOING COMPLETED YET TO START DROPPED DELAY PLANNED ACTUAL ON TIME
17 12 9 9 3 78.4% 78.3% 99.7%


28 STRATEGIC INITIATIVES

ONGOING COMPLETED YET TO START DROPPED DELAY PLANNED ACTUAL ON TIME
11 5 3 6 3 76.4% 76.4% 99.6%


5 FLAGSHIPS



1 2 3 4 5

SIMPLIFIED
BUSINESS RETIREMENT
SIMPANAN PROCESS, ADVISORY FINANCIAL
SHARIAH e-SERVICES POLICY & SERVICE LITERACY
PROCEDURE (RAS)
(SB3P)






Phase 1 & 2 75% 99.6% 2014-2016 73%
100% 100%

Phase 1 & 2 2017
100% 86%



31 JUL ‘18 31 DEC ‘18 31 JAN ‘18 31 JAN ‘18 31 DEC ‘18







22

34 KEY INITIATIVES TO SUPPORT 5YRP 2018-2022



34 INITIATIVES
WHICH INCLUDES 44 PROJECTS FOR 2018




24 STRATEGIC INITIATIVES 24 OTHER PRIORITISED INITIATIVES




5 FLAGSHIPS




1 2 3 4 5 6

REDESIG- OPERA-
NING TIONS PAYROLL DATA ICT
(REMODE- TRANSFOR- SYSTEM e-MIS ANALYTICS TRANSFOR-
LING) EPF MATION MATION
SCHEME








INVESTMENT CUSTOMER EXPERIENCE RETIREMENT PEOPLE ICT &
EXCELLENCE EXCELLENCE EXCELLENCE EXCELLENCE CAPABILITY
EXCELLENCE

4 INITIATIVES 9 INITIATIVES 7 INITIATIVES 9 INITIATIVES 5 INITIATIVES
1 PROJECT 22 PROJECTS 3 PROJECTS 3 PROJECTS 15 PROJECTS









23

EXTERNAL


STATISTICS


































24

NATIONAL ACCOUNTS


2013 2014 2015 2016 2017


GDP GROWTH 4.7 6.0 5.0 4.2 5.9
(%)


GDP PER CAPITA
PPP 23.6 25.1 26.2 27.3 28.9
(Int. $‘000)

GROSS NATIONAL
INCOME (GNI) 263.7 276.6 295.0 319.4 334.1
(RM bil.)

(Source: CEIC Data System)

For Purchasing Power Parity (PPP), Malaysia ranks 2 highest in
nd
Southeast Asia after Singapore at $26,960.

Malaysia is an upper middle income country, classified at $16,596
and above. High income countries are marked at $47,176 and
above.

Services industry drives the growth of GDP – highest share of
54.4%. (DOSM)




















25

DEMOGRAPHIC AND LABOUR MARKET


2013 2014 2015 2016 2017

MALE LIFE
EXPECTANCY 72.4 72.4 72.6 72.6 72.7
(years)

FEMALE LIFE
EXPECTANCY 77.0 77.1 77.2 77.2 77.4
(years)

POPULATION:
2010 CENSUS 30.2 30.7 31.2 31.6 32.1
(person mil.)

LABOUR
FORCE 14.0 14.3 14.5 14.7 15.0
(person mil.)

LABOUR FORCE
PARTICIPATION 67.3 67.6 67.9 67.7 68.1
RATE (%)

UNEMPLOYMENT 3.4 2.8 3.2 3.5 3.4
RATE(%)


(Source: CEIC Data System)
SOCSO No. of Registered Employees as at December 2016: 427,690
Improvement in life expectancy due to good access to health
care, infrastructure, food and a better standard of living. (DOSM)

Upbeat economic momentum improves unemployment rate in
2007. (MIDF Amanah Investment Bank Bhd)






26

INFLATION


2013 2014 2015 2016 2017


CPI
(2010=100) 108.9 111.8 114.8 116.8 120.9



CPI: YoY 3.2 2.7 2.7 1.8 3.5
(%)


GDP DEFLATOR
GROWTH 3.7 1.9 - 0.8 1.8 2.7
(%)

HOUSHOLD DEBT
(% of 86.1 86.8 89.1 88.4 84.6
Nominal GDP)

(Source: CEIC Data System)


Decrease in household debt in 2017 reflective of economic upturn
and healthy labour market.
(Minister of Communications and Multimedia)

Consumer Price Index (CPI) for November 2017 rose 3.4% from a
year ago due to higher transport and food costs. (DOSM)


















27

INTEREST RATE AND FOREIGN EXCHANGE


2013 2014 2015 2016 2017

REAL INTEREST
RATE 4.4 2.1 5.0 2.5 3.9
(% per annum)

EXCHANGE RATE -
AVERAGE PER USD 3.2 3.3 3.9 4.4 4.1
(MYR / USD)

REAL EFFECTIVE
EXCHANGE RATE 104 103 93 92 98
INDEX
(2005=100)

(Source: CEIC Data System)


th
Ringgit breaks 4.00 barrier against US dollar on 5 January due to
of improving oil prices. (The Malaysian Insight)




























28

REAL ESTATE AND TELECOMMUNICATION


2013 2014 2015 2016 Q3 2017

HOUSE PRICE
INDEX 145.0 157.6 167.8 179.5 187.6
(2010=100)

HIGH
TECHNOLOGY 60.4 63.4 57.3 55.6 -
EXPORTS
(USD bil.)

BROADBAND
PENETRATION
UNIT / 100 67.1 70.2 74.2 81.5 81.8
HOUSEHOLD
(%)

INTERNET USER:
MALE 55.5 58.3 59.4 57.4 -
(%)

INTERNET USER:
FEMALE 44.5 41.7 40.6 42.6 -
(%)


(Source: CEIC Data System)

‘Lack of confidence or skills’ and ‘lack of interest’ were the main
reasons for not using the Internet.

Nearly all Internet users (96.3%) used Internet for texting via over-
the-top (OTT) messaging platform.
(Source: MCMC Survey 2017)








29

30