KUALA LUMPUR (Jan 11): The Employees Provident Fund (EPF) has accelerated its efforts in transforming and future-proofing itself amid unpredictability arising in the current decade, including the Covid-19 pandemic, the ageing of Malaysia’s population and a changing work landscape.
In its 2019 annual report, chief executive officer (CEO) Tunku Alizakri Alias said the fund is continuously reflecting on its successes and failures, which is very critical, especially with the challenges in the coming years.
“Even at the time of writing, we have barely come out of the first wave of the Covid-19 pandemic before a potential global second wave is threatening to derail economic recovery. This is on top of Malaysia becoming an ageing population by the year 2025,” he said.
He noted a Khazanah Research Institute study, which found that Malaysians lose more than one-fifth of a year to the burden of medical conditions, such as non-communicable diseases and mental disorders.
“As we consider the fact that a significant number of Malaysians do not have enough savings to last through their golden years, this new reality will surely impact the quality of life of our members.
“Considering these factors, coupled with an increasingly volatile global economy, high local youth unemployment and the recent business slowdown in many industries, the EPF must therefore bolster its efforts to help members achieve sufficient savings to lead a meaningful life as they leave their working years,” Alizakri said.
Moreover, he said the changing work landscape, the rise of the gig economy, as well shifts in business models and global supply chains will all factor into the EPF’s long-term strategies.
The EPF’s priority going forward, he said, would be strengthening a purpose-driven, value-based foundation — evolving from just being a social security organisation to building a more inclusive social well-being ecosystem.
“Sustainability will be at the core of this framework, both in terms of financial returns to our members and also in judging the impact of the EPF as an organisation on the environment and society at large,” he said.