KOTA KINABALU: Employees Provident Fund (EPF) members in Sabah are not taking their beneficiary nominations seriously, said its Sabah and Labuan director Mohd Fadil Sarehan.
He said to date, the rate of those who have named their beneficiaries is still very low here, compared to those in other states.
“Members should name their beneficiaries early to make transitions and payments easier for their next of kin and beneficiaries when the member passes away,” he said during a media and stakeholders’ engagement session at the Sheraton Kota Kinabalu here on Wednesday (Oct 7).
Mohd Fadil said it would also be easier for spouses and children to claim their rights, especially for the Muslims who are subject to Faraid and other Syariah regulations.
He said the number of members with proper retirement plans was also still quite low, and urged them to approach any of their EPF branches to get more information about proper retirement plans and savings.
He added that in this day and age, it would be hard to survive without stable retirement savings because not everyone can depend on their children or relatives to help them when they are old and in financial difficulties.
Mohd Fadil said there are around 3.87 million people in Sabah, and only 1.14 million are registered as EPF members, out of which around 63% (725,472) are active members and the rest are non-active.
Non-active means their contributions to their EPF accounts are inconsistent or status unknown.
He said from this number, only about 18% have EPF savings of over RM50,000, while over 289,000 have less than RM1,000 as of Aug 2026.
“As for the total 45,218 registered employers comprising the services, manufacturing, agriculture, construction and other industries in Sabah, 41,956 are active while the rest are not,” he said.
Mohd Fadil said the EPF is a safe and trusted institution that can help people save money and increase their savings as time goes by.
He said although the number of EPF members has increased over the years, the rate is still slower than many other states in Malaysia.
He said if people do not have enough savings when they reach retirement age, they would be forced to work until they are no longer able to, have no backup if a crisis or emergency arises and have no means to fund medical fees.
“There will be an increase in social ills and a drop in national funds because the government has to spend more to assist the needy as well,” added Mohd Fadil.
He urged the public to be more financially aware and take action to plan for their future as well as for their children and spouses.
More information on these subjects can be found by logging into https://www.kwsp.gov.my/ms/ or by visiting their nearest EPF (KWSP) branches to speak to any personnel on duty.
