EPF cam­paigns for those in ‘gig econ­omy’

New Straits Times - - News -

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.

Tunku Al­iza­kri Alias

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