Friday 29 Mar 2024
By
main news image

PETALING JAYA (Dec 14): The government is seeking to develop the right policies and reforms to ensure the independence of the ageing population as more Malaysians retire in the future, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.

“As more Malaysians retire in the future, we must recognise the importance of our retirees and their contribution to a productive economy,” Tengku Zafrul said at the launch of Cagamas Bhd's Skim Saraan Bercagar (SSB).

“In this context, the Ministry of Finance (MoF) is looking to develop the right policies and structural reforms in the future to ensure the independence of the ageing population, and to create a more inclusive society. As such, the Social Protection Council (MySPC) has been reactivated and is actively looking at various options for a comprehensive and integrated social security policy,” he said.

Citing United Nations and World Bank data, Tengku Zafrul said Malaysia will become an aged nation within the next 20 years, with an ageing rate comparable to that of Japan and other high-income economies.

“We can observe that recent data from the Department of Statistics (DOSM) validates such estimates. This is because for this year, Malaysians aged 60 and above represent about 11.2% of our population, which is not far from the expected 15% by 30%,” he said.

This, he added, showed that a growing segment of the population may require financial assistance to sustain their livelihood. As a result of ageing trend, Tengku Zafrul also pointed out that Malaysia is confronted with new challenges in areas such as employment, income security and aged care.

On top of that, he said Covid-19 has made it more challenging when it comes to old age income security.

“Retirement is a significant stage in one’s life. After years of hard work, many are finally able to enjoy the fruits of their labour. Unfortunately, this may not hold true for everyone. Certain segments of our society are forced to retire and rely solely on pension and retirement savings for their daily living.

“The fear of not having enough for retirement is made worse by the rising cost of living over the years, particularly medical care, which is critical as we age,” he added.

Against this backdrop, Tengku Zafrul said the introduction of the SSB is timely, especially for those whose income and savings have been adversely impacted by the pandemic.

“Indeed, this product could serve as a financial lifeline to help them sustain the remaining years of their lives. Moreover, this scheme is more than just a novel product. It represents a significant shift in our focus towards addressing the issue of insufficient retirement savings for the lower-income group,” he said.

To further strengthen the government's effort in supporting private sector initiatives such as SSB, which may attract ad valorem stamp duties to be paid in order to execute the product transaction – as a new product to be introduced in Malaysia – Tengku Zafrul also announced the exemption of stamp duty on the transaction documents executed by the parties involved to reduce the financial burden to potential applicants.

This exemption, applicable for the first two years after the scheme is launched, will help reduce the cost for Malaysian retirees, the minister said.

“We must realise that a healthy ageing population can participate in and contribute to the nation’s sustainable and productive growth. To that end, the SSB is part of the country’s broader efforts to provide a robust retirement plan that will allow senior citizens to continue leading a productive life in their golden years,” he added.

Edited ByS Kanagaraju
      Print
      Text Size
      Share