NSF flirts with ‘failure’ as sign-ups fall flat
Despite an attempt to increase savings among self-employed workers, the National Savings Fund (NSF) is seen as a “failure” after registration for the fund was drastically lower than expected, says finance permanent secretary Somchai Sujjapongse.
The current membership of about 500,000 is a far cry from the target of 20 million people working in the informal sector, Mr Somchai said.
The government had aimed to increase NSF membership to 1 million by year-end.
The Finance Ministry has worked with local communities to provide information about the NSF. Poor public relations is viewed as the main obstacle to registration, Mr Somchai said.
The target group has been expanded to cover students, fewer than 5% of them are NSF members and savings among students remains low, he said.
After the government carried out the first phase of policies to help the poor by providing welfare benefits to 11.4 million lowincome earners to pay for travel and daily necessities, Deputy Prime Minister Somkid Jatusripitak assigned Finance Minister Apisak Tantivorawong to seek additional measures for helping low-income earners.
The measures should be finalised by next month, Mr Somchai said.
“The capital market should also help these people cross the poverty line,” he said.
The NSF, which was set up in August 2015, is a retirement safety net for selfemployed workers not covered by a pension fund, social security or a provident fund.
People aged 15-60 are eligible to apply for membership.
The current structure requires voluntary pension fund members to make a minimum contribution of 50 baht a month, up to a maximum of 13,200 baht a year.
That amount is matched either fully or in part by the government, up to a prescribed limit.
The government makes a matching contribution worth up to 50% of savings but not more than 600 baht a year for workers aged 15-30; up to 80% but not more than 960 baht a year for workers aged 31-50; and up to 100% but not more than 1,200 baht a year for those over 50.
Regarding measures to stimulate tourism, Mr Somchai said no progress has been made because the Tourism and Sports Ministry has not sent any data to the Finance Ministry.
Kesara Manchusree, president of the Stock Exchange of Thailand, said the SET supports the government’s policy on longterm savings by requiring newly-listed firms to set up provident funds for employees.
Mrs Kesara said the provident fund requirement is an indirect measure to help low-income people save more, while at the same time stimulating investment in the capital market.