Thursday 28 Mar 2024
By
main news image

This article first appeared in The Edge Financial Daily on October 31, 2018

KUALA LUMPUR: The Employees Provident Fund (EPF) has been engaging with the government in setting up a blueprint to consolidate social well-being schemes in the country.

Speaking to the press yesterday, its chief executive officer (CEO) Tunku Alizakri Raja Muhammad Alias said that the government has been spending around RM24 billion a year in terms of social benefits and administration, but has yet to be done effectively as there is “no single plan”.

He said having multiple ministries dealing with different stakeholders and different social well-being plans has not been effective.

“We want to create this new [consolidated] blueprint, so that we have that type of retirement where we can be the best that we can,” said Alizakri at The World Bank launch of Case Study on Malaysia’s Employees Provident Fund yesterday.

“We have spoken to the government about this and we are seeing some positive signs. And we are hoping that they are listening to us, and hear the big issues,” said Alizakri, noting these are the big fundamental issues that Malaysia needs to correct to ensure a better Malaysia.

“We are always saying that [money] is never enough. With the high cost of living, especially in urban centres, it is just going to drag your retirement savings that you have,” he added.

Commenting on the upcoming Budget which will be tabled on Friday, Alizakri said the fund has been hearing that it will be much of a people-friendly budget.

“From a provident fund’s perspective, that [people-friendly budget] is the correct direction for the government to look into, because the people’s welfare is important and also ensuring that the people can live a meaningful life,” he said.

“At the same time, we are hoping that the budget will strike a balance between fiscal discipline and economic growth perspective,” he also said.

Apart from stressing on the need to understand the importance of saving enough for retirement, Alizakri said one fundamental aspect which the government has to look at is wages.

“We are at the situation where the cost of living is starting to outstrip the income of our people are earning,” he said. “It is about time for our policy markets, NGOs (non-governmental organisations), [and] stakeholders to all sit down together to have a hard discussion on this matter,” he added.

Meanwhile, when asked about EPF’s performance, Alizakri said the current global uncertainties are affecting every investment fund.

Highlighting its presence in over 40 countries, Alizakri said the fund has to be really cognisant about the geopolitical risks that are happening. “We are keeping an eye on it, we have seen in the past two weeks that the global markets as well as the local market have not been performing very well,” he said.

“This is investment; things go up and come down,” he said.

Nonetheless, the EPF being a long-term fund, Alizakri said this current market situation creates a good buying opportunity, as when prices are cheap, then that’s the time for the provident fund to buy.

      Print
      Text Size
      Share