Only around 35% to 36% of Malaysians are expected to have sufficient savings to sustain their living expenses in retirement, according to Second Finance Minister Datuk Seri Amir Hamzah Azizan.

In light of this, the government is stepping up its efforts to introduce a range of incentives aimed at encouraging voluntary contributions to the Employees Provident Fund (EPF). Among these initiatives, Amir said, is the wider use of digital technology, which is intended to make it easier for individuals to top up their retirement savings online without having to navigate complex or burdensome procedures.

“Among the initiatives being implemented is the expansion of digital technology to make it easier for the public to make additional contributions online, without going through complicated or burdensome processes.”

“If we look at the situation now, one of the key issues that needs attention is retirement savings, which remain insufficient. Currently, only around 35 to 36% of citizens are projected to have adequate funds to sustain their lifestyle after retiring. Therefore, efforts must be stepped up to improve this savings rate. The question is, how do we go about it?”

“We are working to increase these savings by encouraging the public to make voluntary contributions, not merely relying on salary deductions or employer contributions. At the same time, we are simplifying the process, for example, through the use of digital technology. If individuals wish to transfer funds online, the process is straightforward. When it’s not complicated, people are more inclined to save and grow their savings,” he said. 

Amir also highlighted that specific attention is being directed at groups such as first-time savers and gig economy workers, with targeted incentives being introduced to support these segments. He added that the EPF has recently undergone structural changes, which now offer members greater flexibility in managing their contributions.

“Now, savings are divided into three accounts: one for general use, one for emergencies, and another that can be utilised to improve one’s quality of life, such as for purchasing a home or funding education. This is among many initiatives we are undertaking to enhance the existing system, ensuring that the funds accumulated can work more effectively and deliver better returns for contributors,” Amir said further.

The minister also called on government-linked investment companies (GLICs) to adopt a more proactive stance in identifying and pursuing new investment avenues, particularly in line with Malaysia’s evolving economic landscape, which is becoming increasingly centred around intellectual capital and informal economic activities.

(Source: Astro Awani)

• TAGS:
• Datuk Seri Amir Hamzah Azizan
• Employees Provident Fund
• EPF
• Living Expenses
• Retirement