KUALA LUMPUR (Aug 11): Despite a meaningful increase in assets under management this year, the Private Pension Administrator (PPA) points out that more than half of its contributing members did not make a private retirement scheme (PRS) contribution in a given year between 2020 and 2025.

The average dormancy rate over the six-year period stood at 59.4%.

This also means that, in a given year, close to three in five PPA contributing members did not utilise the personal income tax relief of up to RM3,000 available for PRS contributions made through the PPA

PPA's data shows that members who save more regularly and have made at least one contribution in 2026 have, on average, almost twice the lifetime PRS savings of inactive members.

At the #SaveInPRS Year-End Treats 2026 campaign, PPA CEO Taufiq Iskandar reminded the public to start saving early for retirement as it is a long-term journey.

"Contribution patterns may change as individuals navigate different financial products. But what matters is continuing to take steps towards building retirement savings.

“With this campaign, we hope to encourage Malaysians to restart where they have paused and make saving [for retirement] more consistent over time," he said.

Through the campaign, which runs from Aug 11 to Dec 31, PPA is giving away approximately RM138,000 worth of PRS units to 509 winners.

As at June 30, PRS had 695,869 members and about RM11 billion in assets under management.

According to the press release, Malaysians contributed RM5 billion to PRS from 2018 to June 30, 2026, while PRS funds collectively generated RM3.7 billion in investment returns.