EPF must create guidelines from contributors to identify legitimate sources of investments, said an academic.
Prof Mohd Idrus Masirin, president of Malaysian Academic Association Congress, said with the high cost of living today, promises of quick returns could easily persuade an individual to participate in various investment schemes, including scams.
He added that the desire to lead a lavish lifestyle normally compelled individuals to make frequent withdrawals from the Employees Provident Fund (EPF).
“Most are convinced by verbal guarantees that the investment would succeed, and in the event that it does not, the capital would be returned.
“In fact, the lack of knowledge regarding the risks involved also contribute towards them making bad choices,” he said.
He said investments made without proper research would only cause disappointment and frustration to EPF contributors who withdraw their money for the purpose.
