Malaysia to reform pension system to ensure ‘no one is left behind’: PM Anwar
By:Tan Ai Leng
Published Tue, Jun 4, 2024 · 03:16 PM
[KUALA LUMPUR] Malaysia is seeking to reform the country’s pension system to ensure “no one is left behind” and that citizens can enjoy a dignified retirement, said Prime Minister Anwar Ibrahim on Tuesday (Jun 4).
“New solutions are needed to make sure no one is left behind and every layer of society benefits from social protection,” he said during an event organised by the Employees Provident Fund (EPF).
He said that expanding the EPF’s coverage could be part of the solution, and added that including more of the working-age population in the EPF ecosystem would help ensure that more Malaysians can accumulate adequate retirement savings for their old age.
Currently, only 60 per cent – or 10.2 million of the 17 million-strong labour force – are covered by the scheme.
This means that 40 per cent, or 6.8 million workers, in the country are not covered by the EPF, which is the main retirement savings fund for private sector employees.
Citing a recent report by the Asian Development Bank, Anwar noted that 26.1 per cent of respondents aged above 60 will continue to work until their health fails as they face challenges in achieving income security to finance their retirement needs.