Malaysia needs better living wage system, says EPF chief

Malaysia needs a better living wage system that balances the demands of employers and workers without causing too much disruption, says Employees Provident Fund (EPF) CEO Amir Hamzah Azizan. 

“The RM101 billion (US$24.32 billion) pandemic-related withdrawals since 2020 had resulted in 48% of EPF members having less than RM10,000 (US$2,389) in their accounts,” he said at a press briefing, reports The Malaysian Reserve. 

EPF is keen for wages to go upwards, but it must match with the availability of funds and the right way to do it, he noted. 

“If you get the wage up, the contribution to EPF will be better which then results in a better saving rate. For now, we don’t have a plan to increase the contribution rate, when the economy is in a better condition, we might look back at this. We always encourage people to increase their contribution if they can afford it,” he added. 

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EPF intends to ramp up investment in various domestic asset classes this year, as it is time for Malaysia to venture outwards, with international borders set to reopen and the country’s vaccination rates among the best in the world, he said.