More than half of PPA’s contributing members did not make a PRS contribution in a given year between 2020 and 2025, with an average dormancy rate of 59.4% over the six-year period.
The trend highlights that pausing contributions is a common part of the retirement savings journey, reinforcing the importance of returning to the habit and staying consistent over time.
In response, the Private Pension Administrator Malaysia (PPA) launches the #ISaveInPRS Year-End Treats 2026 campaign, running from 11 August to 31 December 2026, to encourage PRS members to restart, continue, and strengthen their retirement savings.
Open to PRS members aged 54 and below, including new enrollees, the campaign rewards members based on their individual contributions during the campaign period.
Taufiq Iskandar, CEO of PPA, emphasizes the necessity of embracing change and evolving to keep pace with modern demand and an ever-changing landscape.
“Retirement savings is a long-term journey, and contribution patterns may change as individuals navigate different financial priorities. What matters is continuing to take steps towards building retirement savings. Through this campaign, we hope to encourage Malaysians to restart where they have paused and make saving more consistent over time,” said Taufiq Iskandar.
Under the campaign, eligible members will receive one draw entry for every RM1,000 in accumulated gross contributions. Dormant members — those who registered before 1 January 2025 and have not made any contributions since then — will receive an additional two entries per RM1,000 contributed.
Members who contribute through PRS Online will receive a further one entry per RM1,000 contributed, allowing those who qualify for both incentives to earn up to four entries per RM1,000.
PPA’s data also shows that members who have made at least one contribution in 2026 have, on average, almost twice the lifetime savings of inactive members. Regular contributions can help members build savings progressively, benefit from cost averaging across different market conditions, and make better use of the RM3,000 annual tax relief for PRS contributions, subject to applicable tax rules.
As of 30 June 2026, PRS had 695,869 members and approximately RM11 billion in assets under management (AUM). From 2018 to 30 June 2026, members’ net contributions totalled RM5 billion, while PRS funds collectively generated RM3.7 billion in investment returns, representing a 74% uplift on member contributions.
For the period of 1 August 2025 to 31 July 2026, the top five performing PRS funds recorded an average one-year return of 49.3% versus 14.6% across 79 PRS funds. These were Public Mutual PRS Islamic Strategic Equity, Principal Islamic PRS Plus Asia Pacific Ex Japan Equity, Public Mutual PRS Islamic Growth, Principal Islamic PRS Plus Growth, and Hong Leong PRS Asia Pacific Fund.
