Almost half M’sian workers are unprotected post-retirement

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KUALA LUMUR: More than six million Malaysians are not covered by any retirement scheme, according to the Employees Provident Fund.

These workers, self-employed or in the semi-formal sector, make up 44 per cent of the total workforce.

According to a report in The Star, EPF Deputy Chief Executive Officer (Strategy) Tunku Alizakri Alias said 10 per cent of the labour force is covered under the pension scheme and 46 per cent under the EPF because this is mandated by law.

Saying the authorities were concerned about the remaining huge number of workers who had no post-retirement protection, he added: “In terms of financial literacy, they must try and upscale themselves as fast as possible.”

Tunku Alizakri said this after an International Social Security Conference ended here Thursday.

The two-day conference themed Active Aging: Live Long and Prosper was jointly organised by the EPF and financial service provider State Street.

Tunku Alizakri urged those who needed advice to meet EPF officials or even Bank Negara.

During his closing remarks, EPF Chief Executive Officer Shahril Ridza Ridzuan said getting those in the semi-formal sector to provide for themselves was a challenging issue.

“It’s essentially how to force people to contribute to their future wellbeing,” The Star quoted him as saying.

He said next year’s social security conference would tackle this issue and the trend of young people becoming increasingly uninterested in traditional jobs.

On response to the new Shariah-compliant EPF scheme, he estimated that over 150,000 EPF members had made the switch from the conventional scheme since its launch on Monday.