Old-Age Financial Protection in Malaysia : Challenges and Pptions
This policy paper presents key findings and suggestions on Malaysia s old-age financial protection system within the context of the country s broader social security framework. The trademark policy approach focusing on job creation instead of expan...
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World Bank Group, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2014/11/20425543/old-age-financial-protection-malaysia-challenges-options http://hdl.handle.net/10986/21038 |
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okr-10986-210382021-04-23T14:04:00Z Old-Age Financial Protection in Malaysia : Challenges and Pptions Holzmann, Robert Employees Provident Fund social security reform options annuities This policy paper presents key findings and suggestions on Malaysia s old-age financial protection system within the context of the country s broader social security framework. The trademark policy approach focusing on job creation instead of expanding social security programs served the country well to move it quickly to a high-middle income level. But to join the club of high-income countries in a sustainable manner may require the country to review its approach to social security, including the way old-age income support is provided, and to address the main current weaknesses: fragmentation across economic sectors, lack of an enabling political environment, incomplete benefit coverage, low mandated savings level, and inadequate disbursement options given the challenges of projected population aging and socioeconomic shifts. To address the old-age financial protection challenge, the paper outlines two key options for Malaysia's employees provident fund, the country's central pension pillar: (i) moving from a mere retirement savings investment fund to a fully-fledged pension fund that offers some minimum annuities; or (ii) more radically, moving the benefits toward a non-financial defined contribution scheme with the fund s resources used as its major reserve fund. Whatever approach is considered, the reform discourse will benefit from changes in the overall governance structure of social security and from a comprehensive research agenda that offers an evidence based decision making. 2014-12-30T21:54:10Z 2014-12-30T21:54:10Z 2014-11 http://documents.worldbank.org/curated/en/2014/11/20425543/old-age-financial-protection-malaysia-challenges-options http://hdl.handle.net/10986/21038 English en_US Social protection and labor discussion paper;no. 1425 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Group, Washington, DC Publications & Research :: Working Paper East Asia and Pacific Malaysia |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
Employees Provident Fund social security reform options annuities |
| spellingShingle |
Employees Provident Fund social security reform options annuities Holzmann, Robert Old-Age Financial Protection in Malaysia : Challenges and Pptions |
| geographic_facet |
East Asia and Pacific Malaysia |
| relation |
Social protection and labor discussion paper;no. 1425 |
| description |
This policy paper presents key findings
and suggestions on Malaysia s old-age financial protection
system within the context of the country s broader social
security framework. The trademark policy approach focusing
on job creation instead of expanding social security
programs served the country well to move it quickly to a
high-middle income level. But to join the club of
high-income countries in a sustainable manner may require
the country to review its approach to social security,
including the way old-age income support is provided, and to
address the main current weaknesses: fragmentation across
economic sectors, lack of an enabling political environment,
incomplete benefit coverage, low mandated savings level, and
inadequate disbursement options given the challenges of
projected population aging and socioeconomic shifts. To
address the old-age financial protection challenge, the
paper outlines two key options for Malaysia's employees
provident fund, the country's central pension pillar:
(i) moving from a mere retirement savings investment fund to
a fully-fledged pension fund that offers some minimum
annuities; or (ii) more radically, moving the benefits
toward a non-financial defined contribution scheme with the
fund s resources used as its major reserve fund. Whatever
approach is considered, the reform discourse will benefit
from changes in the overall governance structure of social
security and from a comprehensive research agenda that
offers an evidence based decision making. |
| format |
Publications & Research :: Working Paper |
| author |
Holzmann, Robert |
| author_facet |
Holzmann, Robert |
| author_sort |
Holzmann, Robert |
| title |
Old-Age Financial Protection in Malaysia : Challenges and Pptions |
| title_short |
Old-Age Financial Protection in Malaysia : Challenges and Pptions |
| title_full |
Old-Age Financial Protection in Malaysia : Challenges and Pptions |
| title_fullStr |
Old-Age Financial Protection in Malaysia : Challenges and Pptions |
| title_full_unstemmed |
Old-Age Financial Protection in Malaysia : Challenges and Pptions |
| title_sort |
old-age financial protection in malaysia : challenges and pptions |
| publisher |
World Bank Group, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2014/11/20425543/old-age-financial-protection-malaysia-challenges-options http://hdl.handle.net/10986/21038 |
| _version_ |
1764447584537018368 |