11 hours ago
- Business
- 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.
