The Employees Provident Fund Board (EPFB) is established under the auspices Employee Provident Fund Act 1991 (EPFA). Its powers are provided for by the EFPA. This board, by itself, is body corporate and as of such the board itself is therefore subjected to the effects of incorporation. Being a body corporate, the board can therefore hold property, sue and be sued on its name and enter into contracts. Further, the board also enjoys perpetual succession as mentioned in Section 3, EFPA.
The board is composed of a chairman, a deputy chairman, a CEO and 18 other members. The Minister of Finance appoints the chairman whilst the other members to the board are appointed on the recommendation of the Minister of finance. Monies in Employees Provident Fund is derived from two sources ie contributions and investment made through the fund.
The board with the recommendation of the Investment Panel is empowered to invest the proceeds of the fund into approved instruments of investment that include Malaysian Government securities, money market instruments, loans, bonds and shares. To this extent the board therefore exercises a fund managers function.
The Investment Panel has a two year term where there be a representative from Ministry of Finance, Bank Negara and professional representatives.