The Hon. (Dr.) Anil Jayantha

¶ 01 (iii) (iv) Year-wise interest rates paid on member balances: - 2015: 10.50% - 2016: 10.50% - 2017: 10.50% - 2018: 9.50% - 2019: 9.25% - 2020: 9.00% - 2021: 9.00% - 2022: 9.00% - 2023: 13.00% - 2024: 11.00%

¶ 02 There are many factors considered when determining the interest rate. Chief among them are two areas. First is the distributable profit. From the Fund’s various investments, after deducting operating expenses for the year and taxes, we determine the distributable profit. Thereafter, we decide the applicable interest rate relative to the balances in members’ accounts.

¶ 03 Several key measures are being taken to further strengthen the Employees’ Provident Fund (EPF). They are as follows: 1) Diversify the EPF’s investment portfolio. 2) Given the large size of invested funds and the income volatility risk, implement an appropriate risk management framework. 3) Discuss and establish a proper performance management mechanism and enhance the information system accordingly. 4) The Government is moving toward digitization to improve overall public sector efficiency. We will link this digital transformation to the EPF. Cabinet approval has been obtained to move to a new digital systems platform. 5) Where member contributions have been evaded, once identified, we will act quickly to recover them, thereby strengthening the Fund and delivering benefits to members. 6) Introduce a new tripartite governance mechanism for EPF management—with the participation of trade unions, employers and the Government—which will be presented in due course.

¶ 04 (Answer to part b): Does not arise.

¶ 05 Hon. Speaker, I table the detailed reply.