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Simplifying Your Financial Life

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Forgotten Money in Your Bank Account? The Government May Take It After 7 Years — Here's How to Check If You Have Unclaimed Cash

Most Malaysians check their bank balances regularly.

But what happens to money sitting in a bank account that hasn't been touched for years?

Many people are surprised to learn that under Malaysian law, funds left inactive for an extended period do not stay with the bank forever. Instead, they may eventually be transferred to the government as Unclaimed Money (Wang Tak Dituntut, WTD).

The good news? The money still belongs to you — and you may be able to claim it back.

What Happens to Inactive Bank Accounts?

In Malaysia, bank accounts that remain inactive for a prolonged period may be classified as dormant.

If no transactions occur and the account holder does not respond to notifications from the bank, the remaining balance can eventually be transferred to the Registrar of Unclaimed Moneys under the Ministry of Finance.

This process is governed by the Unclaimed Moneys Act 1965.

Many Malaysians only discover this years later when they realise an old savings account, fixed deposit, dividend payment, or insurance payout has been transferred into the government's unclaimed money system.

The 7-Year Rule Explained

One of the most common misconceptions is that the government "takes" your money permanently.

In reality, after certain funds remain unclaimed for seven years, they may be transferred to the government's unclaimed money registry.

Examples include:

Savings account balances Current account balances Fixed deposits Insurance claim payments Dividend payments Refunds Salaries that were never collected Trade creditor balances

The ownership of the funds does not change.

The money remains claimable by the rightful owner or their legal beneficiaries.

How Much Unclaimed Money Is Sitting in Malaysia?

Every year, billions of ringgit worth of unclaimed money are recorded in Malaysia.

Many cases involve:

Forgotten bank accounts Old employment-related payments Deceased family members' assets Unclaimed insurance benefits Forgotten investment accounts

In some cases, people discover hundreds of ringgit.

Others discover thousands or even tens of thousands of ringgit they never knew existed.

How to Check If You Have Unclaimed Money

The easiest way is through the government's official eGUMIS portal.

eGUMIS is an online system that allows Malaysians to search for potential unclaimed funds under their name.

Typically, users need to:

Visit the official eGUMIS website. Register an account. Verify their identity. Search using their identification details. Submit a claim if eligible funds are found.

The process can usually be completed online.

Common Reasons Malaysians Have Unclaimed Money

Many people assume they would know if they had money waiting for them.

Unfortunately, that's not always the case.

Common reasons include:

Changing Banks

People close accounts and forget about small remaining balances.

Moving House

Letters and notifications are sent to old addresses.

Job Changes

Unclaimed salaries, bonuses, or reimbursements remain outstanding.

Forgotten Investments

Old investment accounts or dividends go unnoticed for years.

Family Estates

Beneficiaries may not know that deceased relatives had dormant accounts.

Why Financial Organisation Matters

Unclaimed money is often a symptom of poor financial record keeping.

Many Malaysians have:

Multiple bank accounts Various insurance policies Unit trust investments EPF and retirement savings Dividend-paying investments

Without proper documentation, it's easy to lose track of assets over time.

This is why maintaining a personal financial inventory is increasingly important.

Fincrew's Take

Checking eGUMIS should be part of every Malaysian's financial housekeeping routine.

It takes only a few minutes and could reveal forgotten funds that rightfully belong to you or your family.

More importantly, this serves as a reminder that financial planning isn't only about growing wealth — it's also about keeping track of what you already own.

Before opening another savings account or investment portfolio, make sure you know where all your existing money is.

You might be surprised by what you find.

Read the full article

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SOCSO Goes 24/7 Starting June 2026: What Malaysian Workers Need to Know

For years, SOCSO protection in Malaysia mainly focused on accidents that happened during working hours or while commuting to and from work.

But starting June 2026, that is set to change significantly.

Under the new LINDUNG 24/7 scheme introduced through amendments to Malaysia’s Employees’ Social Security framework, workers will soon receive broader protection — even for accidents that happen outside working hours.

This marks one of the biggest upgrades to Malaysia’s worker protection system in recent years.

What Is LINDUNG 24/7?

LINDUNG 24/7 is a new SOCSO (PERKESO) protection scheme that extends accident coverage beyond traditional work-related incidents.

Previously, SOCSO mainly covered:

Workplace accidents Commuting accidents Occupational diseases

This meant many claims were rejected if accidents happened during personal time.

Under the new framework, eligible employees will now receive 24-hour protection, regardless of whether the accident happens during work hours or outside of work.

Why This Change Matters

Modern work life has changed.

Today, many Malaysians work:

Hybrid schedules Remote jobs Flexible hours

The line between “working time” and “personal time” has become increasingly blurred.

According to reports, thousands of SOCSO claims in recent years were rejected because accidents occurred outside official working hours.

The new scheme is designed to close this gap.

What Benefits Will Workers Receive?

Under LINDUNG 24/7, employees may receive benefits similar to existing SOCSO protections, including:

Medical treatment coverage Temporary disability benefits Permanent disability pensions Dependants’ benefits Funeral assistance Rehabilitation services Constant attendance allowance Educational assistance for dependants

This means workers injured outside office hours may still qualify for support and compensation.

What Types of Accidents Could Be Covered?

Examples may include:

Slipping at home Road accidents during personal errands Injuries during leisure activities Accidents outside normal office hours

Previously, many of these situations were excluded because they were considered “non-work-related”.

What Is NOT Covered?

Despite the expanded protection, there are still exclusions.

The scheme generally does not cover:

Accidents occurring outside Malaysia Fraudulent claims Certain immigration violations involving foreign workers Illnesses or disease-related conditions Self-employment injuries covered under separate acts

Importantly, this is still primarily an accident protection scheme — not a full medical insurance plan.

Will Employees Need to Contribute?

Yes.

One of the major changes is that employees are expected to contribute toward the new non-employment injury coverage.

Reports indicate the contribution rates may be implemented gradually in phases.

Employers will likely need to update:

Payroll systems HR processes Employee contribution calculations

before the full rollout.

How This Impacts Employers

For employers, the new SOCSO expansion means:

Potential payroll adjustments Updated statutory contribution processes HR policy changes Employee communication responsibilities

Businesses may also need to educate staff about:

What is covered Claim procedures Contribution changes

Fincrew’s Take

LINDUNG 24/7 is a major step forward for worker protection in Malaysia.

For many Malaysians, accidents do not only happen at work — they happen during everyday life. Expanding SOCSO coverage reflects the reality of modern working arrangements and rising living pressures.

However, workers should also understand that:

SOCSO is not a replacement for medical insurance Coverage still has limitations Personal financial protection remains important

The new scheme improves social protection, but comprehensive financial planning still matters — especially for medical emergencies, critical illness, and long-term disability situations.

Read the full article

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If Malaysia Produces Oil, Why Do We Still Import It? A Simple Guide

Many Malaysians are surprised when they learn that the country imports oil and gas despite being an oil-producing nation. If Malaysia produces its own petroleum, why do global oil price increases still affect our fuel prices? And why does the country continue to buy large amounts of crude oil and refined fuels from other countries?

The answer lies in how the global oil market works — and in Malaysia’s strategy of selling high and buying low.

Malaysia Is Actually a Net Exporter of Oil and Gas

According to the Department of Statistics Malaysia (DOSM), the country exported RM170 billion worth of oil and gas products in 2025, while importing RM152 billion. This means Malaysia remains a net exporter by about RM18 billion.

Oil and gas trade generally falls into three categories:

Crude petroleum and condensate (raw oil) Refined petroleum products (petrol, diesel and fuels) Liquefied natural gas (LNG)

Malaysia exports significant volumes in all three categories, especially refined petroleum products and LNG. But at the same time, imports are still necessary to support domestic demand and refinery operations.

Malaysia Produces High-Quality Oil

One important detail is the type of oil Malaysia produces. Malaysia’s main crude oil, known as Tapis Blend, is classified as light sweet crude. This type of oil:

Has lower sulphur content Is easier to refine Produces higher-value fuels such as petrol and jet fuel

Because of its quality, Malaysian crude often commands higher prices in international markets. Instead of refining all of it domestically, Malaysia frequently exports this premium oil to countries willing to pay more for it.

Why Malaysia Imports Cheaper Crude Oil

While Malaysia produces high-grade crude, most of its refineries are designed to process heavier sour crude oil, which contains more sulphur but is cheaper to purchase.

This creates a practical trading strategy:

Malaysia sells premium crude oil at higher prices, then imports lower-cost crude that works better with domestic refineries. Economists often describe this as a “buy cheap, sell high” strategy.

It allows Malaysia to:

Maximise revenue from high-value crude exports Keep refineries operating efficiently Maintain fuel supply for domestic use

In other words, the decision is largely commercial rather than technical.

Why Malaysia Doesn’t Just Refine All Its Own Oil

A common question is why Malaysia doesn’t simply build more refineries and process all its crude domestically.

The reason is economics. Oil refineries are extremely expensive projects that can take five to ten years to recover their investment costs.

By comparison, offshore oil production projects can sometimes generate returns much faster. Because of this, it can be financially smarter to export crude oil and focus on higher-margin trading opportunities instead of expanding refinery capacity.

Why Fuel Prices Still Follow Global Markets

Another confusing point is why Malaysians still feel the impact of rising global oil prices. The reason is that Malaysia imports a large portion of its refined petroleum products — the fuels used in vehicles such as:

RON95 petrol RON97 petrol Diesel

Even though Malaysia exports oil overall, it relies on imported refined fuels to meet domestic demand. This means international price changes can still affect the cost of fuel.

For example, economists estimate that every USD10 increase in global oil prices can raise Malaysia’s fuel subsidy bill by more than RM10 billion per year. This puts pressure on government finances and may lead to subsidy adjustments or higher retail prices.

Why Singapore Is Both a Major Buyer and Seller

One interesting detail in Malaysia’s oil trade is Singapore’s role. In 2025, Malaysia exported RM22.4 billion worth of refined petroleum products to Singapore, while importing RM36.3 billion worth from the country. This two-way trade exists because Singapore operates as Southeast Asia’s main oil trading hub.

With one of the region’s largest refining capacities, Singapore functions like a regional fuel marketplace, where oil is stored, blended, traded and redistributed across Asia. Malaysia often sends crude or refined products there for storage or resale, while also purchasing specialised fuel supplies when needed.

The Bigger Picture

Malaysia’s oil trade might seem contradictory at first glance. But the system works because of several factors:

Malaysia produces high-value crude oil Domestic refineries process cheaper imported crude more efficiently Global oil markets determine prices for fuels Regional trading hubs like Singapore help balance supply and demand

In short, Malaysia’s oil strategy is less about self-sufficiency and more about maximising economic value within global energy markets. Understanding this helps explain why fuel prices can still rise even in an oil-producing country.

Read the full article

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Tax Relief for Home Wi-Fi in Malaysia: How to Claim Up to RM2,500 From LHDN

With tax season approaching, many Malaysians are looking for legitimate ways to reduce their taxable income. One commonly overlooked claim is the tax relief for Internet and digital lifestyle expenses.

If you pay for home broadband or mobile data, you may be able to claim part of those costs under Malaysia’s Lifestyle Tax Relief category.

Here’s what you need to know before filing your taxes.

How Much Tax Relief Can You Claim?

Under the Lifestyle Relief category, taxpayers can claim up to RM2,500 per year.

However, this amount is a combined limit, which means it covers several types of digital and lifestyle expenses, including:

Home broadband subscriptions Mobile data plans Smartphones Tablets and computers Books and reading materials Self-improvement courses

Because these expenses share the same RM2,500 cap, it’s important to organise your receipts and prioritise which claims provide the most benefit.

Can You Claim Your Home Internet Bill?

Yes. Monthly home broadband subscriptions are eligible for tax relief under the lifestyle category.

For most Malaysian fibre plans from providers such as:

Unifi Maxis Fibre TIME Internet CelcomDigi Fibre

the full subscription amount can usually be claimed, as these plans are primarily Internet services.

This means your annual broadband expenses could potentially contribute a significant portion toward the RM2,500 claim limit.

What About Mobile Phone Plans?

Mobile plans are slightly different.

Many mobile packages include calls, SMS, and Internet data in a single monthly bill.

According to LHDN guidelines:

Only the Internet data portion of a mobile plan is claimable. The voice and SMS portions are not eligible.

If your provider does not separate these charges clearly, you may need to estimate the Internet component or refer to your provider’s breakdown.

Important Rules Before You Claim

To successfully claim Internet expenses, there are a few key requirements set by LHDN.

1. The Subscription Must Be for Personal Use

The tax relief only applies to personal lifestyle spending.

If the Internet subscription is used strictly for business purposes, it should be treated as a business expense instead, not a personal tax relief claim.

2. The Bill Must Be in Your Name

This is one of the most common mistakes taxpayers make.

Even if you are the one paying the bill, you cannot claim tax relief if the account is registered under:

Your spouse’s name Your parents’ name Someone else in the household

The subscription must legally belong to you.

3. Keep Your Records for Seven Years

LHDN requires taxpayers to keep documentation for up to seven years in case of an audit.

Acceptable records include:

Monthly broadband bills Payment receipts Digital invoices or PDF statements from provider apps

Keeping these organised can save you significant trouble during tax verification.

Can You Claim Multiple Internet Subscriptions?

Yes.

If you have multiple Internet subscriptions under your name, you can claim them as long as they meet the requirements.

Examples include:

Home broadband at your primary residence Internet subscription for another personal property Personal mobile data plan

However, the total claim still cannot exceed RM2,500 under the Lifestyle category.

What About Business Owners?

Business owners can also claim Internet expenses, but under a different framework.

If the Internet subscription is used strictly for business, it should be recorded as a business operating expense, not under personal lifestyle tax relief.

Separating personal and business expenses clearly will help avoid complications during tax filings.

Why This Tax Relief Matters

Internet access has become a basic necessity for work, education, and daily life.

From remote working and online learning to digital banking and e-commerce, connectivity is no longer optional.

Recognising this, the government allows Malaysians to claim part of their digital lifestyle spending through tax relief.

For many households, claiming broadband and mobile data costs can help reduce taxable income while encouraging digital access.

A Simple Tip Before You File Your Taxes

Before submitting your tax return, review your expenses for the year and gather all digital lifestyle receipts.

Many Malaysians forget they are eligible to claim Internet subscriptions — leaving tax savings unclaimed.

By organising your records early, you can maximise your relief and avoid missing out on legitimate deductions.

Read the full article

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When Buy Now Pay Later Becomes a Necessity: What Malaysia’s BNPL Boom Really Means

Buy Now Pay Later (BNPL) was originally marketed as a convenient payment option — a flexible alternative to credit cards that allowed consumers to split purchases into smaller instalments.

But recent data from Malaysia’s Ministry of Finance suggests the story may be changing.

In 2025 alone, BNPL transactions in Malaysia reached RM21.3 billion across 243 million transactions, with RM4.9 billion still outstanding. At first glance, these numbers simply reflect the rapid growth of fintech services.

However, one detail stands out.

More than 70% of BNPL users in Malaysia come from the B40 income group.

That statistic raises an important question:Is BNPL still about convenience — or is it becoming a financial lifeline?

The RM91 Transaction That Reveals a Bigger Story

One of the most telling numbers in the BNPL discussion is the average transaction size: RM91.

This is not the typical profile of discretionary spending such as gadgets, luxury items or travel.

Instead, the majority of BNPL usage in Malaysia goes toward everyday essentials, including:

Food and groceries Transport Basic services Small household expenses

When short-term credit is consistently used for basic living costs, it often signals something deeper — cash flow pressure within households.

BNPL in this context functions less like a lifestyle payment option and more like a short-term financial buffer.

Why BNPL Appeals to Lower-Income Households

For many B40 households, access to traditional credit remains limited.

Credit cards typically require:

Minimum income thresholds Stable employment records Formal documentation Credit history checks

BNPL platforms, on the other hand, offer:

Instant approvals Minimal paperwork Integration with e-commerce platforms Smaller repayment amounts

This accessibility has made BNPL one of the fastest-growing forms of consumer credit in Malaysia.

For someone facing a temporary cash shortfall, being able to split a RM100 purchase into smaller payments can feel manageable.

But convenience can quickly turn into reliance if used repeatedly.

The Hidden Cost Behind “Interest-Free” Credit

BNPL products are often marketed as interest-free, which creates the perception that they are cheaper than traditional loans or credit cards.

However, the cost structure can change when payments are missed.

Typical charges may include:

Late payment fees Processing charges Reactivation fees

Because BNPL transactions are usually small, these fixed fees can represent a high effective cost relative to the original purchase.

For example, a late fee applied to a RM91 grocery purchase can significantly increase the total repayment amount.

This dynamic sometimes creates what economists call a “poverty premium” — where lower-income users end up paying proportionally more when mistakes happen.

The Risk of Expanding Credit Limits

Another growing concern is how BNPL credit limits expand automatically.

Some users report that their spending limits increased significantly over time without actively requesting it.

While this may seem harmless for higher-income consumers, the implications are different for households with tight budgets.

Increasing credit limits can:

Encourage higher spending Create larger repayment obligations Expand financial exposure without income growth

In digital financial systems driven by algorithms, credit expansion can happen quietly — making financial discipline even more important.

Why BNPL Default Rates Remain Low

Interestingly, despite concerns about overuse, BNPL default rates in Malaysia remain relatively low.

According to recent data:

Overdue BNPL balances represent about 3.3% of total lending This equals roughly RM160 million in overdue payments

At first glance, this suggests the system is functioning well.

However, behavioural finance offers another explanation.

Unlike credit cards, BNPL platforms typically freeze accounts immediately after missed payments.

This “hard stop” forces users to settle outstanding balances before they can continue using the service.

While this helps prevent long-term debt accumulation, it can also create strong pressure to prioritise BNPL repayments over other financial obligations.

BNPL Reflects a Larger Economic Reality

It is important to recognise that BNPL did not create Malaysia’s cost-of-living challenges.

Instead, it reflects them.

Rising living costs, stagnant wage growth, and uneven access to traditional credit have all contributed to households relying on short-term payment solutions.

In many cases, BNPL functions as a temporary patch for everyday financial gaps.

When the average transaction is only RM91 and the majority of users come from the B40 group, BNPL becomes less about convenience and more about financial resilience.

The Real Question Moving Forward

The debate around BNPL should not simply focus on whether the product should exist.

Digital credit tools can provide real benefits, especially for individuals excluded from traditional banking services.

The more important questions are:

Are affordability checks strong enough? Are fees clearly communicated? Are credit limits aligned with repayment ability? Are financial literacy efforts keeping pace with fintech growth?

If BNPL is becoming a core financial tool for lower-income households, its safeguards must evolve accordingly.

Because while instalment payments can ease short-term pressure, they cannot solve the deeper economic challenges that created the need for them in the first place.

Read the full article

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Luxury Car Ownership in Malaysia: Understanding Road Tax and Insurance Obligations

Every few months, a debate resurfaces online:

“If someone can afford a Ferrari, what’s RM40,000 a year in road tax and insurance?”

Then comes the more controversial take:

“If the penalty for a crime is money, the law is only for poor people.”

But here’s the reality — Malaysia’s road tax and insurance framework isn’t about wealth. It’s about usage. And understanding that distinction can save you from making a very expensive mistake.

Road Tax in Malaysia Is Not an Ownership Fee

Many Malaysians assume road tax is a yearly ownership charge. It sounds logical. But legally, that’s not how it works.

In Malaysia, road tax is a licence for public road usage, not a tax on owning a vehicle. If your car never touches a public road, the obligation does not activate. This is where confusion begins.

The Ferrari 488 Example

Take a Ferrari 488 with a 3.9L engine. In Malaysia:

Annual road tax can exceed RM6,000 Comprehensive insurance can easily exceed RM35,000 annually Total yearly compliance cost may cross RM40,000

For a car that’s rarely driven, insurance — not road tax — becomes the real cost driver. So what happens if the owner stores the vehicle?

When Renewal Is Not Required

Malaysia does not penalise unused vehicles. If a Ferrari is parked on private property and never driven on public roads:

No road tax renewal is required during storage No insurance renewal is required during storage No fines accumulate simply because time has passed

Road tax does not stack like unpaid debt. Insurance cannot be back-purchased for inactive years.

When the owner decides to use the car again, renewal simply starts fresh. Only the new active period is payable. That’s the legal framework.

But The Rule Is Absolute: Do Not Drive Without Renewal

The moment the wheels touch a public road, the Road Transport Act applies.

Driving without valid road tax:

Fine of up to RM3,000

Driving without valid insurance:

Fine of up to RM1,000 Possible vehicle seizure Exposure to unlimited third-party liability

Violations arise from usage — not ownership. The act of driving creates legal and financial liability.

Why Some People Think Fines Are “Cheaper”

On paper, someone might compare:

RM40,000 annual compliancevs RM4,000 maximum compound per offence

Mathematically, it may appear cheaper to risk fines. But that logic ignores accident risk. Fines are capped.

Accident liabilities are not. One uninsured accident involving injury, luxury vehicle damage, or litigation can result in six or seven-figure exposure. Insurance pricing reflects risk probability and severity — not punishment.

Insurance Is About Financial Survival

Supercars are expensive to repair.

Specialised parts. Carbon fibre panels. Imported components. Skilled labour.

Even minor damage can escalate quickly. More importantly, third-party injury claims carry no practical ceiling. This is why insurance dominates ownership economics. It is not a compliance burden — it is a financial firewall.

Myth vs Legal Reality

Myth: Road tax is a yearly ownership tax.Reality: It is a licence for public road usage.

Myth: If you don’t renew for years, you must back-pay.Reality: Renewal restarts from the new active period.

Myth: Paying fines is cheaper than insurance.Reality: Fines are capped. Accident liabilities are not.

Malaysia’s system is usage-based and logically structured.

Inactive vehicles do not create automatic violations.Active vehicles require disciplined protection.

The Bigger Financial Lesson

This topic isn’t about Ferraris. It’s about risk management. Whether you drive a Myvi or a 488:

Compliance cost is predictable Accident exposure is unpredictable Insurance transfers catastrophic risk away from you

Smart financial behaviour isn’t about avoiding fees. It’s about understanding when obligations begin — and what happens if you ignore them.

At Fincrew, we believe financial literacy starts with understanding how systems actually work — not how social media explains them. Before making decisions based on “math that looks attractive,” always ask:

What risk am I really carrying?

Read the full article

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Malaysia’s RM4,000 Incentive to Scrap Old Cars — What It Means for You

In an effort to modernise the country’s vehicle fleet and improve road safety, the Malaysian government has introduced a vehicle scrappage incentive under Budget 2026 that could put money back into your pocket when you upgrade your old car.

What’s the New Incentive About?

Owners of vehicles over 20 years old are now eligible for a matching incentive of up to RM4,000 when they trade in and scrap their old car to buy a new national vehicle — such as those from local manufacturers like Proton and Perodua.

Here’s how it works:

Participating carmakers may offer an incentive (e.g. RM2,000) when you trade in your old vehicle. The government will match that amount up to RM4,000 — effectively doubling your rebate toward a new car purchase. If a manufacturer’s rebate is higher, your total benefit could be even greater — as long as the government’s contribution caps at RM4,000.

This scrappage incentive is now available — including at showrooms nationwide — thanks to the collaboration between the government and national automakers.

Why Is Malaysia Doing This?

There are several reasons behind this policy:

Improve Road Safety – Older cars may lack modern safety features and can be more prone to mechanical issues, increasing the risk of accidents. Reduce Pollution – Older vehicles tend to emit more pollutants, contributing to environmental and air quality challenges. Support Local Car Industry – Encouraging buyers to choose national car brands helps stimulate demand and support automotive jobs and production at home. Free Up Road Space – With millions of inactive or road‑licensed vehicles over 15+ years on Malaysian roads, this programme helps clear out vehicles that may no longer be economical to maintain. How Much Could You Benefit?

Let’s say:

A manufacturer offers RM2,000 for your old car. The government matches it with an additional RM2,000. Total incentive: RM4,000 toward your new national car purchase.

If the manufacturer’s incentive is higher (e.g. RM5,000), you could receive even more value overall (e.g. RM9,000 total discount) — depending on the terms of the vehicle trade‑in programme.

Practical Tips Before You Upgrade

If you’re considering scrapping your old car:

Check eligibility: Your car must generally be over 20 years old and meet the trade‑in criteria from participating dealers. Compare offers: Ask dealers about manufacturer rebates and how the government match applies. Use online deregistration tools: JPJ’s eDeREG service allows you to deregister your vehicle digitally without visiting a counter. Plan your financing: If you need a loan to top up the balance for a new car, start exploring hire‑purchase or micro‑loan options early. Why This Matters to Everyday Malaysians

This isn’t just a perk for car buyers — it’s a targeted effort to make Malaysian roads safer, greener, and more efficient while helping citizens more affordably transition to newer vehicles. The incentive also shows how policy can help bridge affordability gaps in big‑ticket purchases like cars.

Whether you’re using your old car daily or have been thinking about upgrading, this incentive could make the decision easier — and more cost‑effective — in 2026.

Read the full article

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Who’s Really Paying the Price? The Truth Behind Malaysia’s Soaring Health Insurance Premiums

Malaysia’s healthcare affordability is under the spotlight, with health insurance premiums rising dramatically — by as much as 70% in December 2024 alone. For millions of Malaysians, this sharp increase is not just a number; it’s a direct hit to their wallets.

According to data from Ekonomi Rakyat and Bank Negara Malaysia, insurance premiums increased between 40% to 70%, with healthcare inflation in 2024 hitting 15% — far above the Asia-Pacific average of 10%. These rising costs are largely affecting the middle-income group (M40), who now face a perfect storm of increasing insurance premiums, medical bills, and stagnant wages.

Why Are Premiums Rising So Fast?

One major contributor is the abuse of Guarantee Letters (GLs). Patients who use GLs for insurance-covered treatments are often charged significantly more than those who pay upfront and claim later.

For instance:

Dengue patients with GLs were charged an average of RM4,978, compared to RM1,288 for those on a pay-and-claim basis — a shocking 286% difference. Pneumonia patients faced RM6,859 with GLs vs. RM2,654 without — a 158% increase.

This disparity drives up claim costs for insurers, leading to higher premiums across the board.

Hospitals Are Winning Big

While Malaysians bear the burden, private hospitals are seeing record profits. Between 2020 and 2024, their revenue doubled from RM16.5 billion to RM30.5 billion, with profits rising from RM400 million to RM3.9 billion. This suggests that a large part of the healthcare cost increase is feeding corporate bottom lines — not improving care quality or access.

Insurance Companies Still Profitable

Despite the narrative that insurers are struggling, the general insurance and takaful sector reported RM1.6 billion in underwriting profits in 2024. This means that even as healthcare claims rise, insurers are still managing to stay profitable.

What Can Malaysians Do? Review your policy: Understand what is actually covered and the limitations around overseas or GL usage. Stay proactive with health screenings: Early detection can avoid high-cost treatments later. Fincrew now offers corporate on-site health screening – reach out to learn more. Be financially literate: With premiums rising and healthcare inflation unchecked, planning is no longer optional. Read the full article

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Car Loans in Malaysia Just Got Fairer: What the New Hire-Purchase Law Means for You

Buying a car in Malaysia has long meant dealing with flat-rate interest and the infamous “Rule of 78” — both of which heavily penalise early repayments. But that’s about to change, thanks to a major revamp of the Hire Purchase Act.

With the passing of the Hire-Purchase (Amendment) Bill 2025, Malaysia is moving toward a more transparent and borrower-friendly loan structure. The two biggest changes? The abolishment of flat rate calculations and the Rule of 78 — both replaced by the reducing balance method.

Why This Matters

Under the old system, you paid the same interest every month — even when your loan balance had already decreased significantly. Early settlement didn’t save you much in interest, because most of it was already charged upfront.

Now, with the reducing balance method, your monthly interest is based on your remaining loan balance. This means:

Extra payments go directly toward reducing your principal. You save significantly on interest if you settle early. You may even shorten your loan tenure and reduce your total repayment amount.

This change empowers car buyers with more flexibility and savings — a game changer for personal finance planning.

Other Reforms You Should Know Effective Interest Rate (EIR): Lenders must now display the EIR in marketing materials and loan agreements. This gives you a clearer picture of your actual borrowing cost. Digital Signatures: Signing car loan agreements can now be done electronically, saving you time and hassle. Early Repayment Discount: Borrowers in good standing (not overdue, not under legal action) will now benefit from proportional discounts for early settlement. Applicable to Existing Loans: With mutual agreement, current hire purchase borrowers may also switch to the reducing balance method even before full implementation. When Will This Take Effect?

The law has been passed but awaits royal assent and gazetting. Once enacted, providers have an 18-month grace period to fully implement it — but some may adopt it sooner.

What This Means for You

This reform is one of the most consumer-friendly changes in Malaysia’s credit system in years. For Malaysians planning to buy a car — or already financing one — it’s time to revisit your loan terms and talk to your bank about this new opportunity.

Read the full article

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Hat Yai Floods Leave Over 1,000 Malaysian Cars Stranded — But Are They Insured?

The recent floods in Hat Yai, Southern Thailand, have turned a weekend getaway into a logistical nightmare for many Malaysians. With reports confirming that over 1,000 Malaysian-registered vehicles are trapped in submerged basements and flooded streets, a pressing question arises — are these cars insured for disasters abroad?

A Travel Tragedy: What Happened in Hat Yai?

From November 22, torrential rains triggered heavy flooding in Hat Yai, catching locals and tourists by surprise. Among those affected were Malaysian tourists, many of whom had driven across the border in their personal vehicles.

Leong Beng Tat, chair of the Sungai Petani Volunteer Firefighting Team, stated that between 1,200 to 1,500 Malaysian vehicles were caught in the floods. Many were parked in hotel basements and are now completely submerged.

To make matters worse, Malaysian tow trucks are not permitted to operate in Thailand, leaving owners dependent on Thai services just to bring their vehicles back to the border.

Insurance Woes: Are You Really Covered?

This flood has exposed a major blind spot for many Malaysian drivers: standard local car insurance policies typically do not cover incidents abroad. Unless your policy includes an international or cross-border extension, you're likely not protected for:

Natural disasters like floods or landslides overseas Theft or vandalism abroad Towing or vehicle repatriation costs from a foreign country

For many of the stranded vehicle owners in Hat Yai, this meant paying out of pocket for recovery — and in some cases, abandoning their vehicles altogether due to repair costs exceeding vehicle value.

What Can Malaysian Car Owners Learn from This?

If you're planning to drive into Thailand — especially to places like Hat Yai, a common travel destination — here’s what you should seriously consider before your next trip:

1. Check Your Insurance Policy Coverage

Most basic Malaysian car insurance policies do not automatically extend coverage overseas. You must opt-in or purchase a cross-border coverage extension, which often includes:

Third-party liability in Thailand Own damage & theft abroad Coverage for natural disasters like floods 2. Add Special Perils Coverage

Even within Malaysia, not all policies cover floods. Make sure your car insurance includes Special Perils Add-On, especially during the monsoon season or if you drive through flood-prone areas — locally or abroad.

3. Understand the Claims Process

Even if you're covered abroad, the claims process may differ. You'll need to provide detailed documentation from Thai authorities, including police reports, towing documentation, and repair estimates.

4. Emergency Support Is Crucial

Does your insurer offer 24/7 emergency assistance? In cross-border cases, having a responsive insurer with international coordination is critical. Choose insurers with multilingual support and established partnerships in Thailand.

Volunteer Efforts Save the Day

Amid the chaos, 23 Malaysian rescue teams went above and beyond to assist trapped tourists. While many victims expressed gratitude, the situation also showed how ill-prepared many travelers are for disasters abroad — not just physically, but financially.

Final Thoughts: A Wake-Up Call for Travelers

The Hat Yai flood is a stark reminder of the risks we often overlook when driving across borders. A short trip can quickly become a financial and emotional burden if you're underinsured or unaware of policy limitations.

At Fincrew, we strongly recommend reviewing your motor insurance policy before any overseas drive. Speak to your insurer about cross-border add-ons, or compare flexible plans through Fincrew that include Special Perils and Thailand coverage options.

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Malaysia’s Car Loan System Is About to Change — Here’s Why It Matters to Every Driver

Buying a car in Malaysia has always involved navigating complex hire-purchase calculations. Most borrowers simply look at the monthly instalment without truly understanding how interest is charged — and how much more they actually pay over time.

But this is finally changing.

The Malaysian government has passed long-overdue amendments to the Hire-Purchase Act (HPA), marking one of the biggest reforms to consumer financing in decades. The update will abolish the flat rate and the Rule of 78, replacing them with a fairer, transparent method that gives borrowers better control and real savings, especially when settling loans early.

Here’s what every car buyer should know.

1. The Flat Rate & Rule of 78: Why They Were a Problem

For years, car loans in Malaysia relied on two outdated systems:

a) Flat Rate Method

Interest is calculated on the original loan amount, not on what you still owe.

Example:Loan amount: RM12,000Rate: 6%Total interest: RM720You pay interest as if you still owe RM12,000 every month — even when your balance is just RM1,000. Clear, but extremely unfair.

b) Rule of 78

This method doesn’t change the total interest — it changes when you pay it.

It "front-loads" interest into your first few payments.So in Month 1, a big chunk of your instalment goes to interest, not the principal.By Month 12, only a tiny portion goes to interest.

The problem:If you settle early (e.g., Month 6), you’ve already paid most of the interest upfront. Your savings are tiny.

These systems financially penalise responsible borrowers who want to clear debt faster.

2. The New Law: Fairer Car Loans With the Reducing Balance Method

The landmark change brings Malaysia in line with countries like Australia, Singapore and the UK.

Under the reducing balance method, interest is calculated monthly based only on what you still owe.

Example: 6% interest on RM12,000 loan Month 1 interest: RM60 Month 12 interest: RM5

As your principal goes down, your interest goes down.And if you settle early, you save proportionately — finally rewarding good financial behaviour.

3. Effective Interest Rate (EIR): True Transparency for Borrowers

Lenders must now clearly display the Effective Interest Rate (EIR) in:

brochures car loan ads financing agreements

Why this matters:EIR reflects the actual cost of borrowing.It allows consumers to compare loans apples‑to‑apples, instead of relying on misleadingly low flat-rate figures.

4. Digital Signatures Will Make Car Buying Faster

The amendments allow:

digital signing electronic loan agreements fully online processes

This removes the need for physical documents and in‑person signing — making car purchases smoother, especially for nationwide buyers.

5. What About Existing Car Loans?

If you already have a car loan, there’s good news:

You may switch to the new reducing balance method Both you and your lender must agree Some lenders may adopt the new system early, even before full enforcement in 2026

Watch for official notices from your bank.

6. When Will the New Rules Take Effect?

Banks and lenders have 18 months to update their systems, but many are expected to adopt the new method early.

Full implementation is expected in the first half of 2026.

What This Means for Malaysians

These changes represent a major win for car buyers:

Fairer interest calculations Real early settlement savings Transparent, honest loan cost comparison More convenient digital processes

Malaysia’s consumer credit landscape is evolving — and for once, the changes truly benefit ordinary people.

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BNPL Boom in Malaysia: Growth, Risks, and the Path Forward

The Buy Now Pay Later (BNPL) trend continues to gain momentum in Malaysia, with a staggering 102.6 million transactions worth RM9.3 billion recorded in the first half of 2025 — a 31% increase from RM7.1 billion in the second half of 2024. What’s more eye-opening is that 40% of these transactions were made by Malaysians aged 30 and below, sparking concerns about rising financial vulnerability among the youth.

Understanding BNPL’s Popularity

BNPL services allow consumers to split their purchases into interest-free instalments, making it easier to access goods without upfront payment. With increasing living costs and an inflation rate that puts pressure on daily expenses, it’s no surprise that younger consumers are turning to BNPL schemes as a short-term solution.

According to Bank Negara Malaysia, the outstanding BNPL balance stood at RM3.8 billion as of June 30, 2025, representing just 0.2% of Malaysia’s total household debt. While that may seem low, the rapid uptake — especially among young consumers — raises red flags about potential overdependence on easy credit.

The Risk Behind the Convenience

While the data shows that 88% of users are paying their instalments on time (based on a 2024 study by the Consumer Credit Oversight Board Task Force), nearly 169,000 users (2.6%) have overdue payments, amounting to RM121.8 million. That’s a small percentage, but in absolute terms, it reflects growing credit risk — particularly when BNPL providers operate with less stringent checks compared to banks.

With 6.5 million active BNPL accounts, this form of credit is now deeply embedded in the everyday financial choices of Malaysians, from gadgets to fashion, even groceries. However, a lack of awareness about repayment obligations and the psychological ease of “buying now, paying later” can trap consumers in a cycle of debt.

What’s Being Done: Consumer Credit Act 2025

To prevent BNPL from spiraling into a debt trap, the Consumer Credit Act 2025 (AKP) will soon come into play. This legislation mandates:

Proper affordability assessments before offering BNPL credit. Transparent terms with clear disclosure of fees and obligations. Fair charges to prevent hidden costs from catching consumers off-guard. Ethical debt collection practices to protect users in default.

This regulation is not about restricting credit but about making it safer, clearer, and more responsible.

Financial Literacy: The Real Solution

Beyond laws and regulation, the real solution lies in financial literacy. Many young Malaysians lack the understanding of how deferred payments can affect their long-term financial health. BNPL should be treated as a financial tool, not a lifeline. It’s crucial to read the fine print, understand repayment schedules, and budget accordingly.

Final Thoughts

BNPL is here to stay — it’s fast, accessible, and flexible. But like any credit product, it must be used responsibly. With proper regulation and a national push for financial education, Malaysia can strike a balance between innovation and protection, ensuring that BNPL supports, rather than undermines, financial wellbeing.

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What Is a Microloan? A Lifeline for Malaysians in Financial Need

In today's uncertain economic climate, not everyone has easy access to traditional loans. Whether you're a small business owner, a gig worker, or simply someone facing temporary cash flow issues, the barriers to getting a personal loan can feel overwhelming. That’s where microloans step in — offering a practical, fast, and often life-changing financial solution.

What Is a Microloan?

A microloan is a small, short-term loan designed to help individuals or small businesses meet urgent financial needs. These loans typically range from as low as RM100 to RM10,000, making them ideal for:

Emergencies (e.g., medical bills, vehicle repairs) Business capital for micro-entrepreneurs Household or education expenses Temporary cash flow gaps

Unlike conventional bank loans, microloans are easier to access, require minimal documentation, and often don’t involve strict credit checks.

How Microloans Help Malaysians

1. Inclusive Financial Access

Many Malaysians, especially those in the B40 and M40 income groups, do not qualify for traditional loans due to poor credit history, low income, or lack of collateral. Microloans fill that gap, offering financial inclusion for those underserved by conventional banking.

2. Quick Approval and Disbursement

In emergencies, time is money. Microloan providers typically approve and disburse funds within 24 to 48 hours, which is much faster than traditional financial institutions.

3. Support for Micro-Businesses

For small hawkers, freelancers, or home-based sellers, a microloan can be the capital they need to buy supplies, start a new venture, or scale their operations. It encourages self-sufficiency and entrepreneurship among Malaysians.

4. Bridge Between Paydays

Sometimes all it takes is a few hundred ringgit to make it to the next payday. Microloans can serve as a short-term financial bridge without the high penalties of payday lenders or unregulated loan sharks.

Microloans with Transparency: Why Tambadana Matters

One rising name in the microfinance space is Tambadana, a digital microloan platform built specifically for the Malaysian market.

Tambadana stands out by:

Offering transparent repayment plans with no hidden fees. Providing accessible loan options for various income levels. Using digital onboarding to make applications quick and user-friendly. Operating in compliance with Malaysian financial regulations to protect borrowers.

Their mission aligns with Malaysia's national goal of promoting financial literacy and reducing household debt from unregulated borrowing.

Things to Consider Before Taking a Microloan

While microloans can be a lifeline, they also come with responsibility. Here’s what you should keep in mind:

Repay on time: Defaulting may affect your ability to access future financial help. Understand the terms: Always read the fine print — interest rates, repayment period, and penalties. Borrow only what you need: Microloans are not meant for long-term financing or luxury purchases.

Final Thoughts: Small Loans, Big Impact

Microloans are more than just money — they’re a tool for empowerment, offering hope and opportunity to those who may have been left behind by the traditional financial system.

Whether you're looking to cover an emergency, boost a micro-business, or simply bridge a temporary shortfall, microloans from providers like Tambadana offer a responsible, flexible, and fast solution.

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Retiree Loses RM200K in Insurance Scam: A Stark Reminder to Stay Vigilant

In a recent and heartbreaking case of financial fraud, a 62-year-old retired KEMAS teacher from Kuala Terengganu lost a staggering RM200,300 to a sophisticated phone scam that involved impersonators posing as insurance agents and police officers.

This incident is yet another wake-up call for Malaysians — especially retirees and vulnerable groups — about the growing threat of phone scams and financial fraud in our increasingly digital world.

The Modus Operandi

The scam began on May 25, when the victim received a phone call from someone pretending to be an insurance representative, accusing her of filing a fraudulent insurance claim.

The call was then "transferred" to another person impersonating a Bukit Aman police officer, who manipulated the victim into believing she could avoid arrest by surrendering her funds for a so-called Bank Negara investigation.

In a state of panic and confusion, the retiree transferred money from her Tabung Haji account into her bank account, and later revealed her banking credentials to the scammers.

Initially, she made RM26,700 worth of transfers to four different accounts — but the real damage came later, when she discovered that another RM173,000 had been siphoned off through 18 unauthorised transactions between June 6 and June 19.

The case is now under investigation under Section 420 of the Penal Code for cheating.

Why This Matters: Financial Literacy and Scam Awareness

This case shows how scammers prey on fear, confusion, and trust, especially targeting senior citizens who may not be familiar with financial systems or digital fraud tactics.

Here are three crucial takeaways:

No legitimate insurance agent or police officer will ask you to transfer funds or provide banking information over the phone. Bank Negara Malaysia (BNM) does not conduct investigations through personal calls. Sharing your bank login or OTP with anyone — even if they seem official — is a red flag. Fincrew’s Stand: Protecting Your Financial Future

At Fincrew, we advocate not just for smart insurance choices, but also for financial safety and fraud awareness.

Here’s how you can protect yourself and your loved ones:

Verify all calls claiming to be from insurance providers or authorities. Hang up and call the official hotline. Enable transaction alerts on all bank accounts to monitor unauthorised activity. Educate elderly family members on common scam tactics and what to do when they receive suspicious calls. Use tools like Fincrew’s insurance comparison platform to ensure you're dealing with legitimate providers only. Final Thoughts

No one — not even retirees who’ve spent a lifetime serving the community — is immune to the emotional manipulation used by scammers. Let this incident be a cautionary tale for all Malaysians.

It’s time to stay informed, stay alert, and take control of our financial security.

For trusted insurance comparison and updates on scams, fraud alerts, and personal finance tips — Fincrew is here to help.

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BUDI95 Fuel Subsidy: What Malaysians Need to Know About the New RON95 Initiative

Starting midnight on October 1st, 2025, over 16 million eligible Malaysians began enjoying the benefits of the BUDI MADANI RON95 initiative (BUDI95) — a targeted fuel subsidy designed to ease the burden of daily expenses for the rakyat.

This game-changing move, led by the Ministry of Finance, reduces the RON95 petrol price to RM1.99 per litre, down from RM2.05 previously, with each qualified individual eligible for up to 300 litres per month. It’s a powerful example of how targeted subsidies can directly support the rakyat while improving national fiscal sustainability.

What Is BUDI95?

BUDI95 is part of the broader BUDI MADANI initiative, which aims to ensure fuel subsidies benefit the right people — especially the B40 income group, civil servants, and eventually the wider population.

Implemented in phases, the programme first included 300,000 members of the Armed Forces and Royal Malaysia Police (PDRM) starting from 27 September 2025, and then expanded to over 5 million Sumbangan Tunai Rahmah (STR) recipients in the B40 category.

Thanks to this initiative, eligible individuals now enjoy savings on their fuel spending with no application process needed. All they have to do is verify their eligibility using their MyKad or valid driver’s license at participating petrol stations.

How Does BUDI95 Work?

Here's a quick breakdown:

RON95 price: RM1.99 per litre (compared to RM2.05 previously) Quota: Up to 300 litres per person, per month Verification: Via MyKad or driver’s license Payment: Through your preferred e-wallet app Eligibility: Starts with STR recipients and key government groups, with potential future expansion

This initiative recorded rapid uptake, with over 20% of military and police personnel conducting BUDI95 transactions on Day 1, totalling RM3.7 million in RON95 purchases.

Why This Matters for Malaysians

Rising living costs — especially fuel, food, insurance, and healthcare — are a significant concern for many Malaysians. BUDI95 not only provides immediate relief at the pump but also shows a smarter way to distribute subsidies fairly.

Instead of blanket subsidies that benefit everyone (including those who don’t need it), BUDI95 ensures targeted aid reaches the rakyat who need it most — helping balance the government’s fiscal responsibilities while still easing the cost-of-living pressure on everyday Malaysians.

Savings generated from this targeted subsidy will be reinvested into critical sectors like education, healthcare, and social development, making it a long-term win for the nation.

Final Thoughts

At Fincrew, we believe that financial security goes beyond just insurance and savings — it’s also about smarter public policies that protect your wallet. The BUDI95 initiative is a clear example of that — putting money back into the pockets of everyday Malaysians, while paving the way for a more efficient, sustainable subsidy system.

Whether you're driving to work, heading out for groceries, or managing your family budget, lower fuel prices mean more breathing room for what really matters.

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Zurich Malaysia Launches Comprehensive EV Insurance with Gentari Partnership to Boost Charging Infrastructure

As Malaysia accelerates toward a greener, more sustainable future, Zurich Malaysia has taken a major step forward by introducing Z-Driver EV Protect — a cutting-edge insurance and takaful solution tailored specifically for electric vehicle (EV) owners. Simultaneously, Zurich is partnering with Gentari Green Mobility to expand Malaysia’s EV charging network, addressing both insurance and infrastructure needs for EV drivers.

Why EV Owners Need More Than Just Traditional Motor Insurance

EVs come with a new set of risks and needs that aren’t typically covered under standard motor insurance. Components such as batteries, charging accessories, and home charging stations are expensive and vulnerable to various forms of damage.

Z-Driver EV Protect is built to close that gap. It offers:

Home wall charger coverage up to RM15,000 Portable EV charging cable protection up to RM2,000 Personal liability during charging up to RM50,000 Compassionate allowance up to RM20,000 for incidents at public charging stations Optional water ingress coverage for EV batteries Unlimited towing if your battery runs out

All of this starts from an add-on premium of just RM120, making it one of the most comprehensive EV insurance products in the country.

Zurich x Gentari: Powering Malaysia’s Green Mobility

Recognising that insurance isn’t the only piece of the EV puzzle, Zurich has also teamed up with Gentari Green Mobility, a subsidiary of Gentari Sdn Bhd, to improve the EV ownership experience in Malaysia.

Zurich’s brand presence is now visible at 13 Gentari charging stations located in high-traffic venues including:

Suria KLCC Kuala Lumpur Convention Centre KLIA2 Gateway The Gardens Mall Paradigm Mall Johor Bahru

These high-visibility locations help assure EV owners of reliable, accessible charging options — a key barrier to EV adoption.

“Our collaboration with Gentari is not just about increasing the number of chargers, it’s about helping to build a more connected and confident EV ecosystem,” said Teresa Wong, Chief Risk Officer at Zurich Malaysia.

How This Impacts EV Adoption in Malaysia

Zurich’s dual approach — protection + infrastructure — is a powerful push toward encouraging more Malaysians to go electric. While many have hesitated due to range anxiety or concerns over maintenance and costs, this initiative helps alleviate two of the biggest concerns:

What if my EV battery or charger is damaged? Where can I charge my EV reliably?

With this launch, Zurich not only protects EVs but helps promote green mobility by addressing real-world issues EV drivers face every day.

What It Means for EV Owners (And Future Buyers)

Whether you’re already driving an EV or planning to get one, Z-Driver EV Protect is a policy worth considering. It's designed to mirror how EVs are used, not just how traditional cars operate.

From battery depletion towing to home charger protection, Zurich is clearly investing in the future of mobility — and giving Malaysian drivers peace of mind while doing so.

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Malaysia Mandates EPF Contributions for Foreign Workers: What Employers & Expats Need to Know

Starting 1 October 2025, foreign employees working in Malaysia will be included under the Employees Provident Fund (EPF) scheme—marking a major policy shift aimed at enhancing social protection for all workers, regardless of nationality.

This change follows the passing of the Employees Provident Fund (Amendment) Bill 2025, which expands Malaysia’s retirement savings scheme to include non-Malaysian employees holding valid work permits.

What’s Changing?

Previously, EPF contributions were mandatory only for Malaysian citizens. Foreign employees were allowed but not required to contribute. But from October 2025, this changes:

Mandatory 2% contribution from employers Mandatory 2% contribution from foreign employees Applies to all foreign workers with valid employment passes Exemptions: Domestic workers such as maids, cleaners, and cooks

In short, if you're hiring a foreigner, expect an additional 4% in combined monthly EPF contributions per employee starting Q4 2025.

Why the Change?

The policy reflects Malaysia’s broader goals under the 13th Malaysia Plan (RMK13) to promote equitable retirement protection for all workers while keeping employer burden manageable.

While the standard EPF contribution for Malaysian citizens ranges between 11% (employee) and 12-13% (employer), the 2% rate for both foreign employees and employers strikes a balance between inclusivity and cost control.

This will provide foreign workers with a safety net, especially those staying long-term or who may wish to withdraw their savings when leaving Malaysia.

Employer Responsibilities: What You Need to Do

If you employ foreign workers, here’s how to prepare before October:

1. Register with EPF

Employers who haven’t done so must register via the EPF portal or at any EPF branch.

2. Update Payroll Systems

Ensure your HR/payroll software includes the new 2% contributions for both employer and foreign employee.

3. Review Contracts

Make necessary amendments to:

Offer letters Employment contracts Collective agreements 4. Communicate Internally

Inform your HR teams and foreign employees about the new deductions and their rights to withdraw funds upon final exit.

What About Withdrawals?

Foreign employees will be allowed to withdraw their full EPF balance when they:

Leave Malaysia permanently, and Terminate their employment in the country

This gives them financial flexibility and ensures their contributions don’t get locked indefinitely.

What It Means for the Market

From a macro perspective, this policy enhances Malaysia’s commitment to protecting all workers, not just citizens. It also reflects global trends where countries are seeking to extend retirement safety nets to migrant labor populations.

For employers, while the cost impact is minimal, it’s still a compliance priority. Failing to register or contribute will result in penalties and potential legal action.

📝 Final Thoughts

While the 2% rate may seem minor, it represents a significant step toward fairer labor practices and long-term financial inclusion for foreign workers in Malaysia.

At Fincrew, we encourage employers and employees alike to stay informed, compliant, and prepared—especially when it comes to financial planning, payroll adjustments, and insurance integrations.

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