Disposable income, EPF’s performance key factors in voluntary contributions, says economist

Free Malaysia Today

Fariq Sazuki says EPF needs to consistently outperform inflation to keep members contributing voluntarily.  Read More:  https://www.freemalaysiatoday.com/category/nation/2025/02/06/disposable-income-epfs-performance-key-factors-in-voluntary-contributions-says-economist/  Laporan Lanjut: https://www.freemalaysiatoday.com/category/bahasa/tempatan/2025/02/06/pendapatan-boleh-guna-prestasi-kwsp-faktor-caruman-sukarela-meningkat-kata-pakar/  Free Malaysia Today is an independent, bi-lingual news portal with a focus on Malaysian current affairs.    Subscribe to our channel - http://bit.ly/2Qo08ry   ------------------------------------------------------------------------------------------------------------------------------------------------------ Check us out at https://www.freemalaysiatoday.com Follow FMT on Facebook: https://bit.ly/49JJoo5 Follow FMT on Dailymotion: https://bit.ly/2WGITHM Follow FMT on X: https://bit.ly/48zARSW  Follow FMT on Instagram: https://bit.ly/48Cq76h Follow FMT on TikTok : https://bit.ly/3uKuQFp Follow FMT Berita on TikTok: https://bit.ly/48vpnQG  Follow FMT Telegram - https://bit.ly/42VyzMX Follow FMT LinkedIn - https://bit.ly/42YytEb Follow FMT Lifestyle on Instagram: https://bit.ly/42WrsUj Follow FMT on WhatsApp: https://bit.ly/49GMbxW  ------------------------------------------------------------------------------------------------------------------------------------------------------ Download FMT News App: Google Play – http://bit.ly/2YSuV46 App Store – https://apple.co/2HNH7gZ Huawei AppGallery - https://bit.ly/2D2OpNP  #FMTNews #EPF #VoluntaryContributions

Transcript

00:00An economist said the growth in voluntary EPF contributions can be attributed to the pension fund's continued strong performance and a rise in the disposable income of its members.

00:14Farik Sazuki from the Bayt Al Amanateng Tank also tied the spike to the iSara'an scheme benefits, a voluntary contribution program for self-employed and casual workers who do not earn a fixed income.

00:27Contributors under the iSara'an scheme receive a special incentive of 20% of their total voluntary contributions in a year from the government.

00:36Last year, over 1.2 million EPF members made RM13 billion in voluntary contributions, with an official attributing the numbers to the pension fund's steady dividend rates.

00:48Another economist, Calvin Cheng, said that while the RM13 billion figure was encouraging, it is likely premature to conclude that it reflects a structural shift in Malaysia's retirement-saving behaviour.

01:00Cheng, from the Institute of Strategic and International Studies, said temporary factors such as higher employment-to-population ratios and shifts in attitudes towards retirement savings are the main drivers in the growth of voluntary contributions.

01:16Panyu Zhou, FMT News.

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