The Employees Provident Fund's (EPF) Shariah-compliant savings not only comply with the principle of clean income, but also offer competitive dividend returns without affecting contributors.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid, informed that with the Shariah savings account, Muslim contributors have the opportunity to clean up their income and retirement savings.
He also stated that Shariah savings provide optimal returns, hence efforts to find investment opportunities need to be enhanced, whether in the domestic or global market.
Dr Mohd Afzanizam explained that the EPF's Shariah savings returns last year showed competitive dividends, hence the transition to Shariah-compliant savings did not harm contributors.
He also commented on the steps taken by the Selangor Islamic Religious Council (MAIS) yesterday which established a strategic partnership with the EPF to strengthen the state's Muslim community's understanding of property and financial management based on Shariah.
The partnership also involves efforts to promote the EPF Shariah Savings Account and encourage Muslims to purify their wealth by making contributions to Shariah-compliant accounts.
MAIS reportedly collected RM2.7 million in Shariah-compliant money last year, indicating that there are still many people in Selangor who deal with financial resources that are not in line with Shariah principles.
According to the Coordinator of the Malaysian Academy for Small and Medium Enterprise Development (MASMED) Student Entrepreneurship Centre, Universiti Teknologi Mara (UiTM), Dr Mohamad Idham Md Razak, EPF Shariah-compliant savings provide major advantages in terms of peace of mind and moral confidence.
Shariah-compliant investments are made in instruments and sectors that comply with Shariah guidelines without being involved in elements of usury, gharar or maisir, unlike other conventional investments.
