PM: EPF, labour reforms needed so Malaysians don't grow old in poverty

New Straits Times

6 hours ago

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim said reforms to the Employees Provident Fund (EPF) and broader labour policies are essential to ensure Malaysians do not grow old in fear of poverty, abandonment or irrelevance.
Speaking at the launch of the International Social Well Being Conference 2025 today, Anwar described the extension of EPF coverage to migrant workers as a significant step forward in strengthening social protection, and praised the fund's efforts to explore new approaches to enhance retirement adequacy.
"As people live longer, the focus must shift from lump-sum savings to sustainable retirement income.
"Older Malaysians today are healthier, more educated, and more capable than ever. With the right support, many can continue contributing through work, mentorship or community service," he said.
Anwar recounted various labour policies in action, including the Ekonomi Madani framework — which aims to raise labour's share of income to 45 per cent of GDP — a 13 per cent increase in the minimum wage, the Progressive Wage Policy, and the GEAR-up initiatives by GLICs.
However, he said fair wages alone are not enough and social protections must also be strengthened.
"We must also begin thinking about how to build a system that reflects greater solidarity, particularly for those with limited lifetime earnings," Anwar added.
Anwar said the shift in EPF and labour reform comes at a time when the workforce is undergoing structural change, reshaped by microentrepreneurs, gig workers, and those who are self-employed.
"Under Ekonomi Madani, we are committed to raising the ceiling by investing in digitalisation, inclusive innovation and SME growth."
He added that initiatives such as the SME Digitalisation Grant, the National Industry ESG Framework, and targeted support through Tekun and BSN are also in place to advance digitalisation, inclusive innovation, and SME growth.
Anwar highlighted that globally, countries are adjusting retirement policies in response to increased life expectancy and changing work preferences.
"Many nations have begun adjusting retirement ages, balancing fiscal sustainability with individuals' desires for continued engagement," he said.