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PENANG Chief Minister Chow Kon Yeow has reminded employers to take Employees Provident Fund (EPF) contributions seriously as Malaysia is fast moving to become an aged society.
Hence, it is important that a retiree has sufficient funds to see him through without having to depend on others for a comfortable living, said Chow.
To achieve this, all employers must play their role by contributing to the retirement fund as required under the law, he stressed.
With longer life expectancies, Malaysians must carefully plan their finances to ensure a comfortable retirement, Chow said when attending an awards luncheon by the EPF to honour exemplary employers in the northern region.
Present was EPF northern region director Jeffary Mohamed Isa.
Without sufficient savings, retirees may face challenges in meeting their daily expenses and maintaining a reasonable quality of life during their golden years, said Chow.
Therefore, the role of all stakeholders, especially employers, is crucial in helping the country cope with an ageing society, he said.
“An ageing society presents significant challenges, particularly for those without sufficient savings. Employers must continue to care for the welfare of their staff, while employees need to plan and save consistently to secure their future,” said Chow.
Chow also spoke about the Belanjawanku 2024/2025 guide and the new Retirement Income Adequacy (RIA) Framework introduced recently.
These initiatives aim to help Malaysians better manage their monthly living costs and plan effectively for retirement.
The EPF reported that as of October 2024, only 36% of active members aged 55 had accumulated savings up to the Basic Savings level of RM240,000 – a figure that may be insufficient for long-term financial security.
Launched in January 2026, the RIA Framework introduced a three-tier system to guide EPF members in achieving their retirement goals.
The savings targets under the framework range from RM390,000 for Basic Savings to RM650,000 for Adequate Savings, and RM1.3 million for Enhanced Savings, which ensures greater financial security.
Chow also noted that he was proud to learn that the contribution compliance rate in Penang stands at 99.15%.
“If all employers strengthen their collaboration with EPF, I believe we can achieve a 100% compliance rate in Penang,” he added.
Penang emerged as one of the top-performing states in Malaysia, with an impressive 99.15% compliance rate for EPF contributions, the third-highest nationwide.
Out of 112,083 registered employers across the northern region, 38% (43,042) are based in Penang.
This year, 32 employers were awarded the title of Penang Best Employer by the EPF.
In his speech, Jeffary spoke of Penang’s commendable progress in retirement savings.
As of October 2024, 29% of EPF members in Penang under the age of 55 have achieved the Basic Savings threshold, representing 199,000 individuals.
Penang also leads the northern region in financial literacy, recording 36%, surpassing the national average of 29%.
“This achievement reflects the Penang government’s steadfast commitment to supporting the EPF agenda and helping members secure a better retirement future,” Jeffary said. - December 18, 2024.
