KUALA LUMPUR, Nov 20 — Malaysia needs to adopt a living wage mechanism with appropriate wage levels to enable workers to build adequate retirement savings, said the Employees Provident Fund (EPF).
Chief executive officer Datuk Seri Amir Hamzah Azizan said the key issue leading to inadequate retirement savings is that the country’s wages have not increased sufficiently.
“To address this, EPF is striving to enhance knowledge and influence policymakers to implement a more dynamic mechanism that can elevate wages effectively,” he said at the press conference of the 40th Asean Social Security Association seminar and board meeting today.
Amir Hamzah also emphasised EPF’s encouragement for members to take proactive steps to boost their retirement savings.
“The (EPF) contribution rate is adequate for the formal sector. We have 11 to 13 per cent contributions from the employer and 11 per cent from the employee.
“EPF also offers a range of products that enable members to increase their savings voluntarily by raising their contribution rates or making top-up contributions when they have extra income. These actions can accelerate their savings growth.”
Amir Hamzah said EPF must declare attractive dividends to assist members in accumulating adequate retirement savings.
“To declare (attractive) dividends, EPF must ensure robust returns and effective fund management so that the returns are adequate for our members to grow their retirement savings,” he added.
— Bernama
