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Borneo Post
6 days ago
- Health
- Borneo Post
Rising poor health, invalidity issues preventing Malaysians from working until retirement
Datuk Seri Dr Mohammed Azman Aziz Mohammed KUALA LUMPUR (July 24): As discussions reignite over Malaysia's proposal to raise the retirement age to 65, the Social Security Organisation (Perkeso) has warned that the reality on the ground tells a different story, with many Malaysians unable to work until retirement due to poor health and rising invalidity cases. Perkeso group chief executive officer Datuk Seri Dr Mohammed Azman Aziz Mohammed said while the proposal to extend the retirement age may appear logical in the context of Malaysians' longer lifespans, the data shows many workers are being forced to exit the workforce far earlier due to non-communicable diseases and other health conditions. 'Retirement is no longer a guarantee in Malaysia. For many, it has become a privilege they may never reach,' Dr Azman said in a statement. Perkeso data shows invalidity claims have surged by over 160 per cent in the last decade. In 2023 alone, more than 52 out of every 10,000 active workers filed for invalidity, with the average applicant being just 45 years old — far younger than the current retirement age. 'What is more alarming is that 85 per cent of invalidity cases paid in December 2024 were due to non-communicable diseases such as diabetes, cardiovascular disease, kidney failure, and strokes,' Dr Azman said, noting these conditions reflect years of strain, lack of preventive care, and insufficient early intervention. He opined the idea of simply raising the retirement age without addressing systemic health and income security issues is inadequate, describing it as 'building a bridge for the lucky few while leaving everyone else to swim across'. The CEO also pointed out the limitations of Malaysia's current retirement system, which remains heavily reliant on a defined contribution model through the Employees Provident Fund (EPF). The system leaves many at risk, particularly those who are unable to continue working due to health conditions. 'Nearly 75 per cent of EPF members aged 54 have less than RM250,000 in their accounts, translating into a retirement income of less than RM1,050 per month, which is below the national poverty line,' he said. Health-related EPF withdrawals have also increased by 41 per cent since 2015, with over RM93 million withdrawn due to incapacitation in 2023 alone, indicating systemic strain in Malaysia's retirement security model. In response to these challenges, Perkeso has implemented measures such as the Health Screening Programme for workers aged 40 and above, aimed at detecting health issues before they become irreversible, and the Return-to-Work Programme, which assists injured or ill workers in rejoining the workforce through rehabilitation and support. However, Dr Azman stressed that Perkeso's efforts alone are insufficient without broader systemic reform, calling for a new vision for retirement that reflects the diversity of working lives in Malaysia. This includes the introduction of flexible retirement pathways, partial disability options, and minimum income guarantees for those forced to exit the workforce early due to health reasons. 'We must stop treating retirement as a single number, whether 60 or 65, and instead start recognising that the ability to work is not evenly distributed,' Dr Azman said. His remarks come ahead of the World Social Security Forum (WSSF) set to take place in Kuala Lumpur on Sept 29, positioning Malaysia at a pivotal moment to address these challenges with input from global best practices. 'This global gathering is not merely a stage for policy exchange. It is a test of sincerity,' Dr Azman said, adding that Malaysia's hosting of the WSSF is an opportunity to learn from other countries facing similar demographic pressures while ensuring those who contributed to the nation's workforce are not left behind. He emphasised the need to design a future that protects all workers, including those who could not work until retirement due to health limitations, ensuring that every worker is seen, valued, and supported. 'Let us not build a future that works only for the fit and fortunate. Let us build one that holds up the weary,' he said. 'Because in the end, what is the point of being the last person standing while others did not make it?' The call for a more compassionate and realistic approach to Malaysia's retirement and social protection framework comes as the nation grapples with an ageing population, rising healthcare costs, and a workforce increasingly impacted by non-communicable diseases. This demands urgent cross-ministerial and multi-stakeholder attention to address dignified ageing and income security for all Malaysians. Mohammed Azman Aziz Mohammed Perkeso retirement
BusinessToday
21-07-2025
- Business
- BusinessToday
Anwar: Fiscal Discipline Is Working, New Debt Down To RM77 Billion
Credits to PMO FB Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim reaffirmed that his administration has successfully reduced the country's annual new debt to RM77 billion in 2024, a significant drop from RM99 billion in 2022, signalling stronger fiscal prudence. Speaking at the monthly gathering of the Prime Minister's Department in Putrajaya today, he clarified that only the interest payments on legacy debt remain burdensome. 'The new debt taken by the government was RM99 billion in 2022, reduced to RM93 billion in 2023, and in 2024, the total is RM77 billion… that's a reduction,' he said. Criticising misleading claims circulating publicly, Anwar pointed out that some parties continue to accuse the government of increasing debt, despite the data. 'They say the overall debt is higher, including legacy debt and interest payments, but I've stated clearly that the government pledged to reduce new debt, and we've delivered. 'However, what's being spread around suggests that we're increasing the debt, as if we're deceiving the people. If you look at these figures, who's really lying?' he asked. He also underscored that this debt reduction aligns with efforts to narrow the country's fiscal deficit. The government aims to bring the deficit down to 3.8% in 2025 from 4.1% this year and 5.5% in 2022. Anwar explained that the government opted for a gradual reduction approach to avoid disrupting development and market confidence. 'We took over in 2022, and at the time, the fiscal deficit was 5.5%. What is a deficit? It means spending exceeds the country's revenue, which means we are borrowing,' he said. 'We manage the national economy like a household. If your income is RM5,000 but you spend RM7,000, that's a deficit. So now we're reducing expenses to RM6,500, RM6,000, RM5,500, but if we cut too fast, development would stall.' The Prime Minister also credited the civil service's efforts, highlighting Malaysia's 11-spot jump in the IMD World Competitiveness Ranking 2025 to 23rd place, up from 34th last year, the country's best showing since 2020. The rise, announced by the Ministry of Investment, Trade and Industry (MITI) in June, was attributed to improvements in economic performance and government efficiency. He further noted that the International Monetary Fund (IMF), in its Article IV Mission report for 2025, commended Malaysia's fiscal reform agenda, particularly the introduction of the Public Finance and Fiscal Responsibility Act (FRA). 'What does that mean? It means the Finance Minister has handed over part of his powers to Parliament to assess if targets are not being met. That's what we've done,' he said. Related
The Sun
21-07-2025
- Business
- The Sun
Malaysia reduces new debt to RM77 billion in 2024, says PM Anwar
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim revealed that the government has successfully lowered annual new debt to RM77 billion in 2024, a significant drop from RM99 billion in 2022. Speaking at the Prime Minister's Department monthly assembly, he emphasised that this achievement aligns with the administration's commitment to prudent fiscal management. 'The new debt incurred was RM99 billion in 2022, dropping to RM93 billion in 2023 and further to RM77 billion in 2024. The government promised to reduce new debt, and we have fulfilled that,' Anwar stated. He dismissed claims that the government was increasing overall debt, clarifying that only interest payments on older debts remain unchanged. Anwar, who also serves as Finance Minister, highlighted the gradual reduction in the fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent this year. He explained that a measured approach ensures development projects and market confidence remain unaffected. 'We manage the national economy like a household. If income is RM5,000 but spending is RM7,000, that's a deficit. Now, we're reducing expenditure step by step,' he said. The Prime Minister also commended Malaysia's improved global competitiveness, noting an 11-place jump to 23rd in the IMD World Competitiveness Ranking 2025. This progress, driven by economic reforms and administrative efficiency, supports the MADANI Economy Framework's goal of placing Malaysia among the top 12 competitive economies by 2033. Anwar cited the International Monetary Fund's (IMF) approval of Malaysia's fiscal reforms, including the Public Finance and Fiscal Responsibility Act (FRA), as evidence of the government's disciplined approach. – Bernama
New Straits Times
21-07-2025
- Business
- New Straits Times
Govt succeeds in reducing new debt
PUTRAJAYA: Prime Minister Datuk Seri Anwar Ibrahim said the government has succeeded in reducing annual new debt to RM77 billion in 2024 from RM99 billion in 2022. This, he said, fulfils the government's commitment to more prudent fiscal management, with only the interest payments on old debts yet to be reduced. "The new debt that the government has incurred was RM99 billion in 2022, dropping to RM93 billion in 2023, and in 2024 the total is RM77 billion... that is less. "They say the total amount (of debt) is more, added with the old debt and the interest that we have to pay, but I said the government promised to reduce new debt – we have fulfilled that. "But what is being spread around... we are increasing (the debt), so it is as if we are deceiving the people. If you look at these figures, who is deceiving?" he said when speaking at the Prime Minister's Department monthly assembly here today. Anwar, who is also the Finance Minister, said annual new debt had been successfully reduced in line with the drop in the fiscal deficit, while giving the commitment that the government would continue reducing the deficit in stages and responsibly, without affecting national development. He said the government had reduced the country's fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent for this year. He explained that the government had opted for a gradual approach so that deficit reduction would not come at the expense of development needs or market confidence. "We took over in 2022. The fiscal deficit at that time was 5.5 per cent. What is a deficit? It means spending exceeds national income, which means we are in debt. "We manage the national economy like a household economy. If the income is RM5,000 but the expenditure is RM7,000, that is a deficit. "So now we are reducing the expenditure to RM6,500, RM6,000, RM5,500. If it drops suddenly, then (development) cannot proceed," he said. The Prime Minister also praised the civil service for its contributions that helped Malaysia jump 11 places in the IMD World Competitiveness Ranking 2025 to 23rd position, up from 34th in 2024, driven by improved economic performance and administrative efficiency. In June, the Ministry of Investment, Trade and Industry (MITI) announced that Malaysia had achieved its best performance since 2020 in the World Competitiveness Ranking (WCR), reflecting progressive momentum in the country's economic recovery and reform agenda. MITI said Malaysia is on track to be among the world's 12 most competitive economies by 2033, in line with the MADANI Economy Framework. Anwar added that the International Monetary Fund, in its Article IV consultation for 2025, had praised Malaysia's commitment to implementing fiscal reforms, including the Public Finance and Fiscal Responsibility Act (FRA). "What does that mean? It means the Finance Minister has handed over some of his powers to Parliament to assess if the target has been met," he said. — BERNAMA
Barnama
21-07-2025
- Business
- Barnama
Govt Succeeds In Reducing New Debt
BUSINESS PUTRAJAYA, July 21 (Bernama) -- Prime Minister Datuk Seri Anwar Ibrahim said the government has succeeded in reducing the annual debt to RM77 billion in 2024 from RM99 billion in 2022. This thus fulfills the commitment of more prudent fiscal management, and only the interest payments on old debts have not yet been reduced, he said. 'The new debt that the government has incurred (was) RM99 billion in 2022, dropping to RM93 billion in 2023 and in 2024 the total is RM77 billion... that is less. "They say the total amount (of debt) is more, added with the old debt and the interest that we have to pay, but I said the government promised to reduce new debt, we have fulfilled that. "But what is being spread around... we are increasing (the debt), so it is as if we are deceiving the people. If you look at these figures, who is deceiving?" he asked when speaking at the Prime Minister's Department monthly assembly here today. Anwar, who is also the Finance Minister, said annual new debt had been successfully reduced in line with the reduction in the deficit, while giving the commitment that the government would reduce the fiscal deficit in stages and responsibly without affecting national development. He said the government had reduced the country's fiscal deficit from 5.5 per cent in 2022 to 4.1 per cent in 2024, with a target of 3.8 per cent for this year. He explained that the government has chosen a 'gradual' approach so that deficit reduction does not sacrifice development needs and market confidence. Anwar said the move was in line with economic principles that emphasise financial discipline in the economic management of an entity, including the country.
