EPF chairman: Malaysia expected to become aged nation by 2043
KUALA LUMPUR, June 4 — Malaysia is expected to become an aged nation by 2043, where 14 per cent of the population will be made up of those aged 65 and over, Employees Provident Fund (EPF) chairman Tan Sri Ahmad Badri Mohd Zahir said.
At the International Social Wellbeing Conference (ISWC 2024), Ahmad Badri said this follows the effects of increased life expectancy and decreased birth rates.
Berita Harian (BH) reported him saying that following this, EPF intends to focus on the phenomenon of an ageing population that is rapidly occurring around the world.
Ahmad Badri said that by 2060, Malaysia is expected to have three working-age adults for every senior citizen, compared to 10 working-age adults for every senior citizen in 2020.
He said, that although the increase in life expectancy is one of the indicators of a country’s progress, this demographic change will also create challenges for Malaysian society, especially in healthcare, care facilities for the elderly, and guaranteed retirement income.
“One of the main challenges is the change in the employment landscape in this country which is increasingly moving towards informal jobs, such as gig workers and the self-employed.
“This growing segment is made up of nearly four million workers and faces a higher risk of falling into poverty in old age, due to the lack of official pension and retirement programme coverage,” he was quoted as saying.
Ahmad Badri added that to deal with the challenge, the government has helped and increased the informal sector’s retirement savings through the i-Saraan programme, by encouraging voluntary contributions to the EPF.
He said that the EPF is exploring innovations that can be applied to its scheme, to provide better retirement protection for those in the informal jobs sector, with one of the latest initiatives being the restructuring of the EPF account during the savings accumulation phase involving all members under the age of 55, which gives flexibility to all members.
“This approach allows them to save for retirement and at the same time, have access to savings in case of an emergency,” he said.
Ahmad Badri emphasised the urgency of building a comprehensive, sustainable social protection system, calling it a shared responsibility to ensure no one is left behind.
“The EPF understands that a holistic approach is important to meet the different needs of every layer of society. The reforms and improvements carried out will strengthen the existing social protection system and ensure better inclusion and security for Malaysians,” he said.
