This story is about a Singaporean finance guru’s remarks on Malaysia’s EPF dividends which has sparked debates amongst Malaysians online.
A finance guru from Singapore recently took to Youtube to express his amazement at Malaysia’s Employees Provident Fund (EPF) dividend rates, calling them “insane” compared to Singapore’s Central Provident Fund (CPF).
The video, uploaded by personal finance YouTuber ‘1M65’ Mr. Loo, quickly went viral as viewers were stunned by his bold statements.
The Youtube explained how Malaysia’s EPF dividends significantly outperform Singapore’s CPF returns, claiming that Malaysians are sitting on a “goldmine.”
The video has garnered thousands of views and sparked heated discussions, with many expressing pride in their country’s savings scheme, while others questioned the accuracy of his comparison.
Netizens React to the Bold Claim
In the comments section, users were divided. Some Malaysians expressed gratitude for their EPF returns, with one saying, “EPF is actually very well managed in Malaysia!” Meanwhile, Singaporeans were shocked, with one commenting, “CPF rates are nowhere near that!”
Adding to the discussion, the finance guru elaborated that while Singapore’s savings system offers returns between 2.5% to 4%, EPF provides a much higher rate ranging from 5% to 6.7%.
He pointed out that this difference could significantly impact retirement savings over the years.
For instance, an investment of RM100,000 in EPF at a 6.5% rate could potentially grow to nearly RM900,000 over 35 years, even without further monthly contributions.
Encouraging Malaysians to take advantage of this, he advised prioritizing EPF savings and cutting down on unnecessary expenses.
He also quipped, “You should focus on being rich rather than looking rich.”
This prompted some to point out that the comparison might not be entirely accurate, considering the differences in how the two funds operate.
One commenter mentioned that the Singapore Dollar is a steadily appreciating currency while the Ringgit has been a depreciating currency since 2008.
“Say you put S$100K and RM330K respectively into CPF and EPF. After 20 years, the RM account may grow faster at 6% than the SG account at 4%, but when taking into account the depreciating RM, is EPF truly better?” he asked.
Following the viral video, several financial experts chimed in to give their professional opinions on the matter. Some agreed that EPF offers better returns but warned that the comparison overlooks the fundamental differences between the two systems. They emphasized that CPF is designed with more long-term security in mind, while EPF has a higher potential for growth.
The Debate Continues
As the debate rages on, people from both countries continue to voice their opinions online. Some have even created response videos to discuss the pros and cons of both schemes, further fueling the conversation.
It’s clear that the viral clip has not only sparked debate but also encouraged people to examine their own retirement savings strategies more closely.
Watch the full video:
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