Reform key to safeguarding ageing Malaysians, says EPF chief

Daily Express

5 hours ago

Published on: Tuesday, June 17, 2025
Published on: Tue, Jun 17, 2025
By: Pan Eu Joe, FMT Text Size: 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 Kuala Lumpur: The EPF is ramping up efforts to reform retirement systems in Malaysia, saying outdated models no longer reflect modern work patterns or the realities of longer lifespans.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.
Advertisement '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. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
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