The Employees Provident Fund, a government-sanctioned statutory body, was founded under the EPF Act 1951, with the specific aim of acting as a social security depository for monthly contributions from employers and employees alike. The contributions are cumulative, with dividends being paid annually. Employees can withdraw the accumulated sum of their EPF savings at the time of their retirement, usually at age 55. Currently, employers contribute 12% of employees' salaries, while employees themselves contribute 9% of their own salaries every month.

Additionally, EPF members can opt to withdraw part of their savings for specific purposes like house ownership, health care and their children's education. A board of 20 directors at the EPF holds the responsibility of managing the fund, and an investment panel is also in existence to devise investment policies.

To fund the annual dividends, EPF funds are used for investments in sectors like equity, securities, debentures, property and currency. Government bonds and securities are the main recipients of EPF investments. EPF funds are also used for the financing of large-scale government projects, with 58% of domestic financing in the Fourth Malaysia Plan sourced from the EPF.