Have you KWSP-17A-(AHL)-ed?

You’ll be wondering what’s this KWSP-17A-(AHL) thing if you read the title.

Sounds pretty technical isn’t it?
The KWSP

The KWSP-17A-(AHL) Form. I don't understand why the fish this form code name can be so freaking long...

Well it’s not.
It’s actually a name of a form from KWSP, a.k.a EPF and it’s a very important form to you if you DO NOT want to be a part of the government’s economic stimulus package to reduce your monthly contribution from 11% to 8%.
You may download it HERE.
The EPF is no longer called the Employee’s Providence Fund. It is now known as Everybody’s PN4 Fund.
Blow it with Everybody's PN4 Fund! That's right!

Blow it with Everybody...

This is due to the fact that the government has been known to use the funds of the EPF to bailout some PN4 companies (distressed listed companies) or invest in Value & Capital startups owned by sons, saudara-maras, or perhaps son-in-laws? And guess who’s crying like babies now after buying all these shares? Us. You and Me. The people. Everybody. Like this.
My Shares... My Ramunia PA... Argh....!!!

My Shares... My Ramunia PA... Argh....!!!

Don’t agree with this new acronym? Nevermind.
Let’s try Bahasa Malaysia then – KWSP is supposed to be Kumpulan Wang Simpanan Pekerja, but is now known as Kumpul Wang Semua (untuk) Pem-bailout-an.
No matter how you work around it. It means the same :-)
But don’t get scared just yet. Because KWSP is still the safest method to safeguard your cash. And it pays handsome dividends too. The worse thing that can happen to you is if Malaysia goes bust as a nation, like Iceland right now. But even if that happens, there’s nothing to worry about too.
Because we’ll all be united as once again as Malaysians, this time taking turns to take our daily Roti Canai aid from our kind government instead of the RM625 road tax cash rebate. Like this.
At most we will end up like this. So, no big deal right?

At most we will end up like this. So, no big deal right?

:-) Oh well.
Anyway, here’s why I’m creating this awareness and asking you to quickly download this form, fill it up, and go to the KWSP asap to get it submitted (you may ignore this post if you’ve already done it):
The government’s main objective is to automatically increase each working citizen’s purchasing power by 3%.
3% actually doesn’t sound like a lot to an individual, because let’s say you’re earning an average pay of RM2,500 per month, 3% is merely RM75. Only just enough for you to buy 1 bucket of beer in Pure Bar.
The thing is, however, if you take RM75 times the millions of working Malaysians around the country (assuming average income of RM2,500 per citizen) – you will automatically create more than RM100 million purchasing power every month, and that’s RM1.2 billion per year. So if you talk macroeconomics, it’s actually a good thing for the country.
The problem is, many Malaysians do not know what impact will this 3% do to them. In the following table I shall demonstrate this impact.
You lose RM128k. That is equivalent to a Honda Civic or 10 normal LV bags man...

You lose RM128,193. That's equivalent to a Honda Civic OTR price or 10pcs of original LV suitcases man...

Say you start work at the age of 25 and your pay is RM2,500 per month with an average increment of 5% per year, by the end of your retirement period at 55, you would have lost RM128,193.00 in savings that you could have saved if you contributed 11% per month instead of 8%.
Sounds like a lot of money?
Well actually it’s not a lot of money too.
That’s because based on the current inflation rate of 5% (that’s the Bank Negara’s rate; the actual rate can be way higher), your RM128,193.00 that you would probably save over the next 30 years will only have the buying power of only RM26,139 today!
So the moral of the story is :
F**k it. Just spend the money. If you don’t have enough, ask from your parents. Or swipe your credit cards. If not, borrow from the Loan Sharks.
P/S : I’m not going to be responsible if you’re gonna be disowned by your parents, so I think it’s better if you just fill up the freaking form now and submit it asap!
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You’re currently reading “Have you KWSP-17A-(AHL)-ed?,” an entry on jonathanfun.com

Published:
12.7.08 / 2pm
Category:
Announcements, Current Issues, Politics
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7 Comments

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  1. Lisa 12.7.08 / 4pm

    i received some email circulation stated that if contribute 8% means pay more taxes…

  2. Jonathan Fun 12.7.08 / 4pm

    Yes, that’s because your taxable income also increases. And that means you’ll have to pay more taxes :-)

  3. abi 12.7.08 / 6pm

    Its a whore of a situation isn’t it! Makes u wonder if the govt is there to bail out the people or rib em at every opportunity . Nice article ;)

  4. decypher 12.7.08 / 6pm

    I suppose contributing 11% is better. Why spend the money now? Keep it for the future.

  5. JL 12.8.08 / 6pm

    Hi bro, why cbox is missing now ?

  6. Jonathan Fun 12.8.08 / 7pm

    Hi Mr. Loh, sorry about that, was doing some “routine maintenance” on my site :-) It’s back up now.

  7. Shinky 12.10.08 / 12pm

    Last time, EPFs were paying like 8-10% dividends.. But now, less than 5%. I wonder how they manage the money. CPO’s up, Oil’s up, Toll’s up, but not income, not EPFs. This sux!

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