Keynote Speech at the Grow with PRS Fund Awards 2026

Speaker: Puan Sharifatul Hanizah Said Ali, Executive Director, Securities Commission Malaysia

Location: Sofitel Kuala Lumpur
Delivered: 16 April 2026

YM Dato’ Dr.Tengku Aizan, Chairman of PPA,

Members of the PPA Board, and

En. Taufik Iskandar, Chief Executive Officer of PPA,

Distinguished guests, ladies and gentlemen,

Introduction

Good morning.
I would like to begin by expressing my appreciation to the Private Pension Administrator Malaysia for the kind invitation to deliver the keynote address at today's inaugural “Grow with PRS Fund Awards” 2026.
This is a significant occasion in more ways than one as today, we are celebrating not just performance, but the sustained commitment of this industry to improving retirement outcomes for Malaysians.
PRS occupies an important position in Malaysia's retirement savings landscape. As a voluntary private scheme under the regulatory purview of the Securities Commission Malaysia, it serves as a critical third pillar of our retirement system, complementing mandatory savings through the EPF and providing Malaysians with the means to build additional financial resilience for their later years. Today's event is a recognition of that responsibility and a celebration of the providers who have risen to meet it.

Growth of PRS to Date

Ladies and gentlemen,

Over the years, Malaysia's private retirement ecosystem has demonstrated meaningful progress, reflecting both rising public awareness and steady industry effort to strengthen long-term savings outcomes.
As of 2025, PRS assets under management through 9 PRS providers grew by 16% to RM8.8 billion, up from RM7.6 billion in 2024. This expansion is supported by a widening membership base, with total PRS participation reaching over 671,000 members in 2025, representing 9% year-on-year growth.
The membership profile, however, tells us something important about where we are, and where we still need to go. Today, PRS members are predominantly middle-income earners with more than 60% between the ages of 30 and 50. They are, by and large, Malaysians who have already recognised the value of supplementary retirement savings. That is encouraging. But it also means that younger Malaysians, for whom the compounding benefits of early participation are greatest, remain underrepresented.
Membership momentum has continued into 2026, with the member base growing beyond 680,000 as at end of March. AUM, however, has moderated to RM8.6 billion, reflecting broader market movements in recent months. This is a reminder that PRS operates within global capital markets, and that short-term fluctuations are part of the landscape. What matters though is the long-term direction, and that direction remains positive.

Recognition of performance

The contribution picture reinforces this positive direction. More than RM1 billion was invested into PRS in each of the last two years - 2024 and 2025. This represents the highest contribution amount annually in the post Covid period. This consistency highlights that members who understand PRS continue to believe in it as a vehicle for their retirement. The task before us is to extend that confidence to a much wider base of Malaysians.
This is precisely why awards such as today's matter. At their core, fund awards are an instrument of accountability. They make performance visible, comparable, and public. For members, that transparency builds confidence and aids informed decision-making. For providers, it creates a meaningful benchmark against which to measure and improve. And for the industry as a whole, it establishes a culture of excellence that raises the bar across the board.

Ladies and gentlemen,

The performance data from this awards cycle is encouraging. As at February this year, close to 55% of growth and moderate funds delivered annualised returns of more than 7% per annum over 3 years. Meanwhile, 57% of conservative funds recorded three-year annualised returns of more than 4.5% per annum. These are meaningful outcomes which compare favourably with other long term investment vehicles available to Malaysians. This is a fact that should be better known to market.
It is also important to appreciate what these numbers mean in context. Conservative funds are designed to preserve capital, generate income, and protect members who are close to retirement from volatility. Their return profile will naturally differ from growth or moderate strategies which is by design, not by deficiency. Recognising performance must therefore always be done with an appreciation of the strategy being pursued. A conservative fund that consistently delivers stable, positive returns in a volatile environment is achieving exactly what it set out to do.
Across all strategies, what separates a genuinely strong fund from one that merely had a good year is the ability to deliver consistently over time. The awards framework recognises this by evaluating both one-year performance and three-year consistency. A strong single year may reflect favourable market conditions. Consistent delivery over three years reflects something more durable, the quality of investment management, the discipline of the process, and the robustness of the strategy. Both matter, but consistency is ultimately the more meaningful measure for a retirement savings product.

Delivering Value to Members

Ladies and gentlemen

The performance we have just discussed is a reflection of what this industry is capable of and the providers in this room deserve credit for it. But we have to be cognisant that the environment in which PRS operates is changing quickly. Malaysians are living longer. Cost of living pressures are real. And expectations around capital market products and services, from digital access, to transparency, to value for money, are rising, especially among younger segments. Strong performance and sound methodology are necessary foundations, but the question before us is how we build on this foundation to ensure PRS remains relevant and valuable to a much broader base of Malaysians.
Part of that answer lies in the product range itself. Younger Malaysians are already investing in ETFs and stocks on digital platforms outside of the PRS wrapper. If PRS cannot offer them a more innovative product range, we should not be surprised when they choose to keep their money elsewhere.
In this regard, traditional funds, however well-managed, are no longer sufficient on its own to retain the interest and loyalty of the next generation of savers. Provides need to consider greater innovation including feeders into Bursa-listed ETFs and target date funds to rejuvenate the PRS product landscape for the next generation of investors.
Beyond, fund structures, the SC is also actively exploring options to facilitate a wider range of investments for PRS members, including the potential for direct access to Bursa-listed ETFs, stocks, and Malaysian bonds within the PRS framework. The intent is clear: to ensure that the PRS wrapper becomes a compelling home for a broader investment universe, one that reflects how Malaysians are already investing.

Ladies and gentlemen,

These innovations are also essential to attracting a younger member demographic, which is what PRS needs to broaden its base, deepen long-term contributions, and secure its relevance as a retirement savings institution for the next generation of Malaysians.
Expanding the product range, however, must go hand in hand with ensuring that the cost of investing in PRS is commensurate with the value delivered. There is little point attracting new members, particularly younger, more cost-conscious ones, into a framework where fees erode the very returns that make PRS compelling.
The SC and PPA are therefore reviewing the fee framework across the industry with a view towards rationalisation. Focus will be on conservative funds, where fee levels should be proportionate to the expected return profile of the strategy. These measures are intended to recalibrate the value proposition of PRS in a way that is sustainable, credible, and member-first. The SC looks forward to continuing the engagement with the industry on this as a PRS ecosystem that members trust and value is ultimately good for everyone in this room.

Conclusion

Ladies and gentlemen

Before I close, I want to say a few words about what today represents beyond the awards themselves. The decision to establish a formal, structured fund awards recognition for PRS signals that this industry is prepared to be held accountable to members, to the public, and to the standard of performance that a retirement savings scheme demands.
I would encourage each provider in this room to view this acknowledgement is not merely as a competitive exercise, but as a structured and transparent reflection of how your funds are performing for the members who have placed their retirement savings in trust with you. That is a responsibility that should drive every fee and investment decision that you make.
I would like to extend my appreciation and congratulations to PPA for this initiative. Elevating performance visibility, recognising excellence, and addressing public perceptions of PRS returns are all important components of building a stronger, more trusted private retirement ecosystem.
We look forward to seeing this grow into the annual flagship event it is intended to become in Malaysia's capital markets calendar. More than a celebration of returns, we also hope it becomes a lasting symbol of this industry's commitment to the retirement security of Malaysians.
My heartiest congratulations to all the award recipients today. The work you do matters, and today, it is recognised. Thank you.