Employees Provident Fund (Amendment) Act 2016

This Act comes into operation on a date to be appointed by the Minister by notification in the Gazette and the Minister may appoint different dates for the coming into operation of different provisions of this Act.

The Shariah Advisory Committee may determine its own procedures.

Functions of Shariah Advisory Committee 23b.  The Shariah Advisory Committee shall have the following functions:

Members of the Shariah Advisory Committee shall not be entitled to any remuneration but may be paid such honorarium, and travelling and subsistence allowances, as the

Board may determine.

Employees Provident Fund (Amendment)

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Reference to Shariah Advisory Committee 23d.  (1)  The Board and the Investment Panel shall refer to the Shariah Advisory Committee any matter relating to Shariah and any matter which requires the ascertainment of Shariah principles by the Shariah Advisory Committee relating to the accounts of the members of the Fund whose elections under section 43a have come into effect.

The advice given by the Shariah Advisory Committee on any matter referred under subsection (1) shall be binding on the Board and the Investment Panel.”.

Amendment of section 26

in paragraph (a)—

by substituting for subparagraph (ii) the following subparagraph:

“(ii) a bank or an investment bank duly licensed under the Financial Services Act 2013

[Act 758]; or”;

in paragraph (b), by substituting for subparagraph (i) the following subparagraph:

“(i) shares offered pursuant to an initial public offering which have been approved under the Capital

Markets and Services Act 2007 [Act 671] or shares listed on a stock exchange which have been approved under the same Act; or”; and

in paragraph (e), by substituting for the words “Federal or State Government” the words “the Government of

Malaysia or the State Government”.

by inserting after subsection (1) the following subsection:

“(1a)  Subject to section 52, the monthly contribution of every employee and employer who are subject to the minimum wages order made under the National

Wages Consultative Council Act 2011 [Act 732] shall not be less than the monthly contributions based on the amount of the minimum wages for the month as determined under the minimum wages order at the rate respectively set out in the Third Schedule.”; and

in subsection (3), by substituting for the words “subsection (1)”

the words “subsections (1) and (1a)”.

The election under subsection (1) shall be made in such manner as may be prescribed by the Board and the election shall take effect from the date as determined by the Board.

The Board shall notify the effective date of the election determined under subsection (2) to the member of the Fund not less than seven days before the effective date.

The member of the Fund may, before the effective date of the election determined under subsection (2), revoke his election in such manner as may be prescribed by the Board.

After the election made under subsection (1) is effective, the Board shall segregate the account of such member of the

Fund from other accounts of the members of the Fund—

means any partner referred to in the Partnership

Act 1961 [Act 135]; or

has the meaning assigned to it under the Labuan

Limited Partnerships and Limited Liability

Partnerships Act 2010 [Act 707] and the Limited

Liability Partnerships Act 2012 [Act 743].”.

Amendment of section 49

in the shoulder note, by substituting for the word “Interest”

the words “Late payment charges”;

in subsection (1), by substituting for the word “interest”

the words “late payment charges”; and

in subsection (2), by substituting for the word “interest”

the words “late payment charges”.

by renumbering the existing section as subsection (1); and

by inserting after subsection (1) as renumbered the following subsection:

“(2)  Notwithstanding subsection (1), the amount standing to the credit of a member of the Fund under paragraph (1)(c) may be forfeited if the amount standing to the credit of such member is subject to an order of forfeiture by a court under the Anti-Money

Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 [Act 613].”.

by inserting after subsection (2) the following subsection:

“(2a)  A member of the Fund who has made a withdrawal under subsection (1) or (2) shall not make any other withdrawal under the same subsection.”; and

by deleting subsection (3).

The Board may authorize a member of the Fund who has attained the age of sixty years or such other age as may be prescribed under subsection (1), whichever is higher, to withdraw all sums or part of the amount standing to his credit subject to any terms and conditions as may be prescribed by the Board.”.

by renumbering the existing section as subsection (1);

in the renumbered subsection (1)—

in paragraph (b), by deleting the word “or” at the end of that paragraph;

by inserting after subsection (1) the following subsections:

“(2)  Where a member of the Fund who is not a Malaysian citizen has made a withdrawal of all amount standing to his credit under paragraph (1)(d), the member of the Fund shall not be treated as an employee under this Act unless he has given to the

Board and his employer a notice as may be prescribed by the Board of his intention to contribute to the Fund.

Subject to subsections 59(1a) and (3), the Board may authorize an application by a member of the Fund who is not a Malaysian citizen to withdraw part of the amount standing to his credit for the purposes of withdrawal under subsection 54(6) upon any terms and conditions as may be prescribed by the Board.”.

by inserting after paragraph (d) the following paragraph:

“(da)  to provide for any matter relating to the election by the members of the Fund for their accounts to be managed according to Shariah under section 43a and the management of such accounts;”;

in paragraph (f), by deleting the words “, together with any dividend on such contributions”; and

by deleting paragraph (o).

KUALA LUMPUR