Private Retirement Schemes (PRS) are voluntary long-term savings vehicles that supplement EPF, offering tax relief and investment flexibility. With RM3,000 annual tax relief and a government incentive for young investors, PRS provides attractive retirement savings benefits for the right investor.
PRS Key Benefits 2026
| Benefit | Details |
|---|---|
| Annual Tax Relief | RM3,000 per year on PRS contributions |
| Youth Incentive | RM1,000 government contribution (ages 20โ30, one-time) |
| Tax Saving (19% bracket) | RM570/year from RM3,000 contribution |
| Sub-Account A | 70% of contributions โ locked until age 55 |
| Sub-Account B | 30% of contributions โ withdrawal anytime (8% tax penalty) |
PRS vs EPF: Key Differences
EPF: mandatory (employees), guaranteed 5.5% dividend, cannot access until 55 (except special purposes). PRS: voluntary, market-linked returns (3%โ12% depending on fund), more flexible fund choice, partially accessible (Sub-B with penalty). PRS complements EPF โ they are not substitutes.
Best PRS Funds in Malaysia 2026
Evaluate PRS funds by: 5-year annualised return, annual management fee (target below 1.5%), fund type (equity for long horizon, balanced for 10โ20 years, conservative for near-retirement). Top performers by 5-year return: Manulife Growth, Principal DALI (Islamic), Kenanga Growth, and Public Mutual Islamic funds.
PRS Withdrawal Rules
Sub-Account A (70%): no pre-55 withdrawal except terminal illness, death, permanent departure from Malaysia. Sub-Account B (30%): withdrawable at any time with an 8% withholding tax. From age 55: full withdrawal from both accounts tax-free.
Model PRS combined with EPF retirement projections using our ๐ฏ Retirement Calculator.
Our editorial team specialises in Malaysian personal finance โ covering loans, taxation, insurance, EPF, and Islamic finance. Every article is fact-checked against Bank Negara Malaysia (BNM), LHDN, and major Malaysian bank publications. We reference our calculators (which use industry-standard formulas) to ensure consistency between our written content and tools. Learn more about our methodology โ