The number of voluntary contributors accumulated under the Employees Provident Fund (EPF) i-Saraan program has jumped by 77 percent to 599,000 people for the first quarter of 2022.
Finance Minister, Tengku Datuk Seri Zafrul Tengku Abdul Aziz said he also understood that the retirement fund would continue to target the informal and self-employed sectors to enhance social protection efforts.
“This is to ensure that all Malaysians will benefit from their retirement savings,” he said at the i-Lindung Insurance and Takaful Facility Launching Ceremony here today.
Apart from that, Tengku Zafrul said the government was also actively studying policies that could speed up the process of increasing social protection coverage which would be announced later.
In fact, he also described the government’s move to announce the minimum wage level of RM1,500 on May 1, 2022, will be able to contribute to improving the quality of life of the people.
“Measures to improve social security is an important aspect in reducing the wealth gap as well as increasing the living wage.
If this structural issue is not addressed immediately, it will be a risk to the country’s socio -economic stability in the future, “he said.
Tengku Zafrul stressed that although the government and the EPF were reviewing policies to strengthen social security for Malaysians in the long run, aspects such as short-term efforts also needed to be continued.
“This is because of the fact, that there are still many who do not know at all about the need and importance of insurance or takaful. If anyone is aware of the importance of providing this preparation, they may be less capable, ”he said.
According to him, the situation has resulted in many Malaysians still not having any form of insurance or takaful coverage.
“The National Health and Morbidity Survey shows that almost half of Malaysians do not have additional savings to pay for medical expenses.
“This is a challenge that will be faced by the people because we are getting closer to achieving the status of an aging country as early as 2030,” he said.
He reminded that the financial burden is not only borne by the government but also affects taxpayers in the future if the elderly are unable to meet their basic needs.
“I would like to suggest that EPF members seize the opportunity to obtain appropriate insurance and takaful coverage through i-Lindung,” he said.