Reform key to safeguarding ageing Malaysians, says EPF chief
EPF CEO Ahmad Zulqarnain Onn said the traditional model of retirement, based on long-term and stable employment, is no longer tenable.
KUALA LUMPUR : The EPF is ramping up efforts to reform retirement systems in Malaysia, saying outdated models no longer reflect modern work patterns or the realities of longer lifespans.
EPF CEO Ahmad Zulqarnain Onn said the country must act quickly to ensure that Malaysians are not only living longer but are also financially and socially prepared for extended lifespans.
'Life expectancy in Malaysia has increased from 54 years in the 1950s to 75 today, and is projected to hit 81 by 2050.
'That's a gain of roughly one year for every four years passed,' he said in his opening remarks at EPF's International Social Well-being Convention here today.
As of October last year, only 36% of EPF members aged 55 had minimum savings of RM240,000 – enough to sustain expenditure of RM1,000 a month for 20 years.
Zulqarnain said the traditional model of retirement, built when careers were linear and people typically remained in one job or sector throughout their lives, was no longer tenable.
'The world of work has become more fluid. Workers now switch careers, learn new skills, and face constant disruption. Our retirement solutions must reflect that,' he said
Zulqarnain added that nearly 40% of Malaysia's workforce, including gig workers and others in informal or non-traditional work arrangements, had no retirement protection at all.
He said this was more than a policy gap, describing it as a social risk that would grow more costly if not addressed.
Zulqarnain said EPF's reform agenda included modernising savings mechanisms, improving fund withdrawal systems, and expanding coverage to reflect diverse career paths and life stages.
But he said retirement planning must also include access to affordable healthcare, fair wages, and digital infrastructure.
'Our response to longevity must be holistic. The cost of inaction will rise exponentially,' he added.
He also urged policymakers and stakeholders to view an ageing population not just as a looming challenge, but as a chance to drive inclusive and sustainable growth.
The two-day forum brings together thought leaders and experts to discuss strategies to prepare Malaysia for the socio-economic impact of a rapidly ageing society.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
New Straits Times
17 minutes ago
- New Straits Times
EPF steps up retirement reforms ahead of ageing nation shift
KUALA LUMPUR: The Employees Provident Fund (EPF) is ramping up retirement reforms to address widening gaps in income security, as Malaysia braces for a demographic shift that will see 14 per cent of its population aged 65 and above by 2043. Chairman Tan Sri Mohd Zuki Ali said retirement adequacy must be built on fair wages and inclusive participation, noting that all government-linked investment companies (GLICs), including the EPF, have adopted a living wage policy. "That's why all GLICs, including the EPF, have adopted a living wage policy, and we will continue to engage our investee companies to champion decent work as a foundation for long-term security," he said in a statement today. The move comes as the EPF strengthens its long-term strategy to future-proof Malaysia's retirement landscape amid rising life expectancy and cost-of-living pressures. To address these challenges, the EPF introduced the Retirement Income Adequacy (RIA) Framework in December 2024, allowing members to assess their retirement preparedness across three tiers, namely basic, adequate and enhanced. Additionally, a new intergenerational transfer feature, announced under Budget 2025, enables members to allocate part of their savings to support the retirement of family members. This measure is seen as critical to promoting financial resilience across households. The EPF is also expanding coverage to informal and gig economy workers through its i-Saraan programme, which offers a 20 per cent government matching incentive capped at RM500 annually and RM5,000 over a lifetime. As of 2024, the number of voluntary contributors rose by 32 per cent to 1.2 million, with nearly 70 per cent comprising individuals outside the formal workforce. "Longer lives open new frontiers," Mohd Zuki said, in conjunction with the International Social Wellbeing Conference 2025 (ISWC 2025), which was officiated by Prime Minister Datuk Seri Anwar Ibrahim today. "The rise of the longevity economy, shaped by the contributions, consumption and experience of older adults, is an opportunity for innovation beyond pensions and healthcare. It includes how we structure our workforce, build inclusive technologies, and promote lifelong learning and active ageing," he added. Held under the theme "Living to a Hundred: Are We Prepared?", ISWC 2025 brought together policymakers and industry leaders to explore structural shifts needed to sustain a growing ageing population. The two-day event attracted more than 1,500 participants, including global experts such as former Swedish Prime Minister Fredrik Reinfeldt and World Economic Forum longevity lead Haleh Nazeri, who were scheduled to discuss policies, innovations and inclusive strategies to strengthen income security and social wellbeing.
Free Malaysia Today
37 minutes ago
- Free Malaysia Today
Yen slides ahead of Bank of Japan policy decision
The Bank of Japan is expected to keep its main interest rate around 0.5%. (Reuters pic) TOKYO : The yen fell against the dollar ahead of a Bank of Japan (BOJ) decision today, with officials expected to hold interest rates steady but tweak their bond purchase policy. The central bank last year said it would scale down its huge purchases of government bonds – part of attempts to move away from a quantitative easing programme designed to banish stagnation and harmful deflation. It is now considering slowing the pace of these cutbacks, analysts and media reports said. 'Slowing the bond taper will help keep interest rates lower than otherwise, providing support to the economy amid heightened trade uncertainty,' Carol Kong, an analyst at the Commonwealth Bank of Australia, told AFP. 'Speculation of such a move intensified after a surge in the 'super long' Japanese Government Bond (JGB) yields in recent months,' she explained. The dollar surged higher than ¥145 in morning trade, compared with levels of around ¥144.30 yesterday. 'The recent softening of the yen could already partly reflect expectations for a cautious policy update from the BoJ… alongside negative spill-overs for Japan from the Middle East conflict,' said Lee Hardman of MUFG. The BoJ is expected to keep its main interest rate around 0.5%, lower than the US Federal Reserve's 4.25%-4.5%. Bank officials began lifting borrowing costs last year after nearly two decades of ultra-loose monetary policies aimed at kick-starting torpid economic growth in Japan. 'The BoJ will likely hold off on rate hikes until there is further clarity on US trade policy,' Kong said. Japan, a key US ally and its biggest investor, is subject to the same 10% baseline tariffs imposed on most nations plus steeper levies on cars, steel and aluminium. Trump also announced an additional 24% 'reciprocal' tariff on Japan in early April but later paused it along with similar measures on other countries. Prime Minister Shigeru Ishiba said yesterday there had been no breakthrough on a US trade deal after talks with President Donald Trump on the sidelines of the G7 summit in Canada. 'We still believe the Bank may hike rates in the second half of the year as it remains committed to normalising monetary policy,' said Katsutoshi Inadome of SuMi TRUST. 'We expect that domestic demand will remain solid and that there is a chance economic conditions will improve to the point where the BoJ can consider interest hikes,' he said.
Free Malaysia Today
43 minutes ago
- Free Malaysia Today
South Korea and Japan to hold summit on sidelines of G7 summit
South Korean President Lee Jae-myung held talks with Australian Prime Minister Anthony Albanese and South African President Cyril Ramaphosa yesterday. (EPA Images pic) SEOUL : South Korean President Lee Jae-myung will hold a summit with Japanese Prime Minister Shigeru Ishiba on the sidelines of the Group of Seven (G7) summit today in Canada, according to Lee's office. Lee, who was sworn into office earlier this month after winning the June 3 snap presidential election, is visiting Canada on his first trip abroad for the G7 summit. It became 'difficult' to hold a meeting between Lee and US President Donald Trump as planned after Trump was leaving the summit early, National Security Adviser Wi Sung-lac told a briefing. 'Washington had asked for Seoul's understanding,' Wi said. 'Lee held talks with Australian Prime Minister Anthony Albanese and South African President Cyril Ramaphosa yesterday,' his office said. Seoul and Washington are holding working-level tariff talks, as the two sides try to agree on a deal seen as crucial for South Korea's export-oriented economy. South Korea's key sectors, ranging from chips to vehicles and shipbuilding, are heavily exposed to global trade. Lee, a left-leaning leader, has said pragmatism was key to his diplomacy and he would continue with security cooperation between South Korea, Japan and the US.
