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About the Employees Provident Fund (EPF)

The Employees Provident Fund (EPF) is Malaysias premier retirement savings fund, providing basic financial security for retirement. The Fund is committed to preserving and growing the savings of its members in accordance with best practices in investment and corporate governance. It will always be guided by prudence in its investment decisions. As a customer-focused organisation, the EPF delivers efficient and reliable services for the convenience of its members and registered employers. The EPF continues to play a catalytic role in the nations economic growth, consistent with its position as a leading savings institution in Malaysia. How is EPFs corporate governance practice: EPF employs various approach to ensure that it undertakes the best corporate governance practice. Among the steps taken to implement the best corporate governance practice are as follows: Balanced Board of Directors: The Board of Directors (comprising 20 persons) are appointed by the Government to represent four parties, namely, from the Government, employers', employees' and professional representatives. In this way, each interested party in the EPF funds can voice their views and opinions directly; b. Separation of Duties: In line with good corporate governance policies, the posts of Chairman of the Board and Chief Executive Officer are held by 2 different directors so as to establish a balanced power and to lessen the heavy responsibility burden should it be held by only one director; c. Reappointment: All Board members are subject to reappointment after 3 years of service; d. Investment Panel: The Panel is responsible to advise the Board on investment matters. Apart from the Chairman of the Board and the CEO, other members include representatives from Bank Negara Malaysia, Ministry of Finance and three financial experts. Together with the Board, they are selected members whom have wide experience to perform their responsibilities well; e. Board Committees: In order to carry out its task better and effectively, the Board has also set up various committees which are entrusted to address selected aspects. These committees are : (1) Audit , (2) Finance and Developments, (3) Appointment and Services, (4) Discipline and (5) Promotion; f. Communication: Apart from media announcements, EPF also has its website which can be accessed by the public to obtain information on EPF;

Audit and Responsibilities: EPF is subject to audit by the Government Auditors. The Annual Financial Report must be presented for auditing by the Government Auditors. Subsequently, the Annual Financial Report will be presented to the Parliament to be debated before it is adopted; and

Internal Control: EPF has also an internal control department to identify and prevent the possibility of things beyond regulation occurring. The Risk Management Department has also been established to assist Management in implementing an effective internal control system.