QUESTION 3 (25 MARKS)

a. Employees' Provident Fund (EPF; Malay: Kumpulan Wang Simpanan Pekerja, KWSP) is a federal statutory body under the purview of the Ministry of Finance. It manages the compulsory savings plan and retirement planning for private sector workers in Malaysia. Membership of the EPF is mandatory for Malaysian citizens employed in the private sector, and voluntary for nonMalaysian citizens. Analyse the importance of pension fund institutions which have been among the most rapidly growing financial institutions in recent years.

b. Explain why there is a critical need within the economy and financial system to have money market instruments available to anyone who can afford them?