1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
  2. Hi Guest, welcome to the TES Community!

    Connect with like-minded education professionals and have your say on the issues that matter to you.

    Don't forget to look at the how to guide.

    Dismiss Notice

Working in Malaysia - EDF and salary

Discussion in 'Teaching abroad' started by bettieblu, Oct 17, 2016.

  1. bettieblu

    bettieblu New commenter

    I am really excited about the prospect of working overseas but can anyone advise re the EDF savings scheme - is it worth contributing towards? Also what is a 'good' salary in RM? I know it is significantly less than UK expectations but just trying to confirm some details at present.
    Thanks in advance
     
  2. dumbbells66

    dumbbells66 Lead commenter

    What is the EDF savings scheme?

    although the salary might look smaller than you UK, your savings potential could be significantly more. everywhere i have ever worked around the world i have saved a minimum of 1000GBP a month. when was the last time you managed that in the UK?
     
    Noor0706 and skeptucator like this.
  3. bettieblu

    bettieblu New commenter

    I have no idea about what it is other than a % of wages/ contribution from school is made and it earns 5% sounds like a good opportunity to save to me as I will have so little to pay out for. I have zero opportunity to save here in UK!!
     
  4. dumbbells66

    dumbbells66 Lead commenter

    there are plenty of savings schemes like this, if you message me i can put you in touch with someone that deals a lot with overseas teachers. he could point you in the right direction.
     
  5. gulfgolf

    gulfgolf Established commenter

    Avoid EPF. It used to be a great deal but it's turning into a huge pyramid scheme. Inflated self reported "profits" are claimed, and today's lucky recipients are taking their cash quite happily. Unfortunately it's all financed with new contributions, which will soon no longer be enough to cover the outgoings.
     
    bettieblu likes this.
  6. gulfgolf

    gulfgolf Established commenter

    Of course, you may not be able to avoid. Schools generally decide for you, so there isn't really a choice, other than about whether or not to accept the offer of a position.
     
  7. bettieblu

    bettieblu New commenter

    It has been quite clear that this is an optional thing so that is good.

    Any idea on salaries?
     
  8. dumbbells66

    dumbbells66 Lead commenter

    Just looking on search, they seem to range from $35000 to $45000 a year starting salary
     
    Noor0706 likes this.
  9. bettieblu

    bettieblu New commenter

    Cheers - looks like I have a good deal
     
  10. Leebeez

    Leebeez New commenter

    Regarding the EPF in Malaysia, it is interesting to note that you pay a minimum contribution of 11% which is equally matched by your employer. You can elect to pay a much greater % of your salary if you wish. This state pension scheme provided a dividend interest of 6.4% during the last financial year - this is anually compounded interest . The Malaysian trade union congress was apparently disappointed by the drop from the previous year's value of 6.75%. This pension fund has operated under different names since 1951 with no early termination penalties. But as has been suggested in previous posts, every investment has its inherent risks.The AA's latest cash ISA with a rate of 1.05% looks like the best UK ISA but I guess its only available for UK residents.
     
  11. fsmc

    fsmc Occasional commenter

    A rate of 1.05% is essentially burning your money over time since inflation is higher than that. The real value of your money is dropping every day you have it in those garbage schemes they call 'cash ISA's' in the UK.
     
  12. bettieblu

    bettieblu New commenter

    Going on this, do you think it's worthwhile participating at the 11% minimum?
     
  13. Leebeez

    Leebeez New commenter

    Good question.If your employer is matching the 11% then this can be considered as an addition to your salary and in the long term offsets half the tax bill you'll probably have. In this sense yes it's a no brainer.
    Whether you decide to contribute more is up to you, your employer will only contribute 11%.

    If you have a low salary, you may prefer to have that 11% in your pocket. Also if you sign a two year contract. Your EPF will be paid to you at the end and you may
     
    Noor0706 likes this.
  14. gulfgolf

    gulfgolf Established commenter

    Are you a betting person?
    It's not a question of if the fund will fail, but of when. National finances are very shaky and there is a massive international corruption scandal involving key figures from the fund. Oil and gas depression is cutting deeply into national income.
    Today the fund is solvent (on paper) and reporting income higher than anyone thinks is realistic. Will that be the case when you leave Malaysia and want to withdraw your money?
     
  15. Leebeez

    Leebeez New commenter

    .......find that sterling has fluctuated, meaning that the investment is not as much as you would have liked. However, the way sterling is at the moment and the warning signs after brexit mean that it might remain like this for some time
     
  16. Leebeez

    Leebeez New commenter

    As previously mentioned, the EPF has existed since 1951 and I'm just reading the news about a very cautious state budget for the next year with 3.4% increase in national revenue. Yes we all know about 1mbd and falling oil prices.
    Every financial decision has inherent risks - we all know this.
    11% extra on top of your salary is not to be sneered at. But of course, like fsmc says, if you'd prefer an ISA at 1.05% then go ahead - you will lose money, net. People have different views and it's important in this forum to get both sides of the story.......
     
  17. nemo.

    nemo. Occasional commenter

    EPF is of course a vol scheme in Malaysia for expats and schools offering a contribution do so as a perk - min they have to offer is only 5RM a month. Often it is used as a sneaky "tie in" as you can only get it back if you fufill your contract.

    At the moment EPF looks dofgy as 12 Billion USD went missing from a state development fund - a mere 4 billion USD (per the evil Wall Street BAnker) stolen by the PM who also seems to have mistresses who sit on semtex ...... and EPF funds are used to prop up failing companies like MAS. So although the EPF fund won't fail alone a key point would be a collapse in the Malaysian economy devaluing the RM. With oil prices low that has made a real mess of the economy. I made 30% recently on MYR/GBP rates and 75% APR on the stock market in last year. Asset bubble? Oh yeah! World economic collapse? Prob. Is Malaysia a good place to weather it out? Yep at least it's warm! And all this is part of the fun of being overseas. Although if the USA votes in Trump USA then trumps Asia on that one

    Another poit to consider is that student enrollment is lower in all schools. The best schools have been hit hard so teacher recruitment less.

    Of course as always I would say after teaching Asian students who are considerate, dedicated and polite going home again is hard.
     
  18. fsmc

    fsmc Occasional commenter

    If the employer matches contributions it's a no brainer to contribute up to the maximum limit. The fund would have to fall 50% before you were at risk of losing a penny.
     
  19. dumbbells66

    dumbbells66 Lead commenter

    there are lots of international schools out there that will match pension contributions. two of my schools would match upto 20% of my monthly salary into a private pension.

    obviously you choices will be a lot smaller if you are only looking at Malaysia
     
  20. gulfgolf

    gulfgolf Established commenter

    FYI 11% is the old minimum contribution rate. Earlier this year the government changed it to 8% if you're under 60, less if you're over.
    But that doesn't necessarily mean it's a better deal.
    If the economy goes south, one easy political move will be to stop foreigners from withdrawing their money. They could do it easily, with some stipulation that everyone must be resident and of retirement age to withdraw, and then it's monthly, not a lump sum. Easy for politicians, a boon for citizens, disastrous for foreigners.
    The stroke of a pen, and your money, while technically yours, is out of reach.
     

Share This Page