Old-Age Financial Protection in Malaysia : Challenges and Pptions

Holzmann, Robert

World Bank Group, Washington, DC

关键词: Employees Provident Fund;    social security;    reform options;    annuities;   

RP-ID  :  92725

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

This policy paper presents key findingsand suggestions on Malaysia s old-age financial protectionsystem within the context of the country s broader socialsecurity framework. The trademark policy approach focusingon job creation instead of expanding social securityprograms served the country well to move it quickly to ahigh-middle income level. But to join the club ofhigh-income countries in a sustainable manner may requirethe country to review its approach to social security,including the way old-age income support is provided, and toaddress the main current weaknesses: fragmentation acrosseconomic sectors, lack of an enabling political environment,incomplete benefit coverage, low mandated savings level, andinadequate disbursement options given the challenges ofprojected population aging and socioeconomic shifts. Toaddress the old-age financial protection challenge, thepaper outlines two key options for Malaysia's employeesprovident fund, the country's central pension pillar:(i) moving from a mere retirement savings investment fund toa fully-fledged pension fund that offers some minimumannuities; or (ii) more radically, moving the benefitstoward a non-financial defined contribution scheme with thefund s resources used as its major reserve fund. Whateverapproach is considered, the reform discourse will benefitfrom changes in the overall governance structure of socialsecurity and from a comprehensive research agenda thatoffers an evidence based decision making.