It is time for Malaysia to embrace serious reforms in its pension and retirement framework to ensure financial security and equity for all Malaysians, said Prime Minister Datuk Seri Anwar Ibrahim.
Anwar said a recent survey found that 26.1% of respondents above the age of 60 will continue to work until their health fails as they face challenges in achieving income security to finance their retirement needs.
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Anwar said a recent survey found that 26.1% of respondents above the age of 60 will continue to work until their health fails as they face challenges in achieving income security to finance their retirement needs.
Read more at https://shorturl.at/7D9CS
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NewsTranscript
00:00 [MUSIC PLAYING]
00:05 For Malaysia, it is projected to only take 23 years to make
00:12 the shift from aging nation to aged nation, with 14% of the
00:19 population well above the age of 65.
00:23 And it will take another 14 years thereafter for Malaysia
00:29 to reach super-aged nation, 21% above age 65.
00:37 And this is, of course, alarming if we do not take
00:42 measures now effectively to ensure that there is no issue
00:50 of longevity, but level of comfort and care.
00:55 And all ministries, agencies have been instructed to, of
01:02 course, deal with this issue.
01:06 In Malaysia, again, the World Bank has projected that the
01:09 demographic change is expected to contribute about one third
01:15 of the decline of GDP growth rate between 2020 and 2050,
01:21 bucking on all these new initiatives on energy
01:26 transition and digital transformation.
01:28 Our concern is, of course, the plight of the poor.
01:35 And we have seen that the older one becomes, then he is
01:41 prone to fall back to the poverty trap.
01:47 The old age population is more susceptible to poverty
01:51 compared to the average Malaysian population, with only
01:58 29% of Malaysians having a pension, 29% having a pension
02:06 or pension-like income during retirement.
02:10 EPF data shows that one in four members actually exhausted
02:16 their EPF savings within five years after
02:20 reaching withdrawal age.
02:22 We have taken great strides, and I think Malaysia is quite
02:29 happy to be recognized as one of those that have continued
02:34 this culture of savings, or savings culture.
02:38 But there are concerns, and this must be addressed.
02:41 Many Malaysians are not able to maintain what is considered
02:48 to be a reasonable standard of living after retirement.
02:54 And a recent survey found that 26.1% of respondents aged
03:00 above 60 will continue to work until their health fails.
03:05 That includes me.
03:07 As they face challenges in achieving income security to
03:11 finance their retirement needs.
03:14 And that does not include me, because I'm not taking salary
03:17 as Prime Minister.
03:18 We need to actively seek reform in the Malaysian pension
03:22 framework in order to ensure that every generation in
03:26 Malaysia will be able to look forward to growing
03:30 old with dignity.
03:31 New solutions are needed to make sure no one is left
03:35 behind, and that every layer of society benefits from social
03:39 protection, expanding EPF coverage in phases so that
03:44 more of the working age population will become part of
03:47 the EPF ecosystem will ensure that more Malaysians can
03:52 accumulate adequate retirement savings for their old age.
03:57 It is time for Malaysia to embrace serious reform in its
04:01 pension and retirement framework to enhance its
04:05 coverage, adequacy, and sustainability, and ensure
04:11 financial security and equity for all Malaysians.
04:16 Our unity government is absolutely committed to
04:19 bettering the lives of older Malaysians and building a more
04:23 inclusive and just society for all Malaysians in line with
04:29 the concept of Malaysia Madani.
04:32 In this regard, the government plans to strengthen two
04:36 pillars of social protection.
04:37 For social assistance, the government will further
04:40 strengthen social assistance programs to provide support
04:44 and a safety net for Malaysians who are facing
04:48 financial hardship.
04:49 Malaysia must also prioritize investments in critical
04:54 sectors such as health care, pharmaceuticals, and
04:59 infrastructure conducive to active aging.
05:04 Preparing for an aging nation requires a whole of nation
05:09 approach to improve the lives of older Malaysians and the
05:14 citizens of the world.
05:17 It is incumbent on all of us to build a better and more
05:21 inclusive world for the older members of society.
05:25 Thank you.
05:27 [END VIDEO PLAYBACK]