EPF campaigns for those in ‘gig economy’
KUALA LUMPUR: The Employees Provident Fund (EPF) is on a campaign to ensure that those involved in the “gig economy” are well-planned for their retirement.
EPF deputy chief executive officer (strategy) Tunku Alizakri Raja Muhammad Alias said those within the informal sector of the economy, made up of people without a fixed job, such as artistes, Uber and Grab drivers, as well as small online retailers, had to be made aware of their options for retirement as early as possible.
He said the problem was further compounded by the fact that 70 per cent of Malaysians had unacceptable levels of financial literacy skills.
“Lots of people are making money in the gig economy for now, but they also need to understand that they must save for the future or they will be in trouble come retirement day.
“We need to educate them as soon as possible that this is not a tax, but a form of savings for the future,” he said.
He said EPF, which plays an advisory role, provided the 1Malaysia Retirement Savings Scheme for this group as well as other members of the public, with its retirement advisory services officers also offering options such as insurance and private retirement schemes.
Tunku Alizakri was speaking to reporters following a press briefing on the International Social Security Conference 2017 yesterday.
Meanwhile, EPF chairman Tan Sri Samsudin Osman called on the government to increase its contribution to the retirement scheme.
“We want the government to increase the amount (of contribution) to encourage people to subscribe to the scheme,” he said.
Currently, the government is contributing 10 per cent with a maximum amount of RM120 per year to members of the scheme, on top of the scheme’s yearly dividend for their savings.