PENANG, like much of Malaysia, is experiencing the effects of an aging society.
With longer life expectancies, Malaysians must carefully plan their finances to ensure a comfortable retirement.
Without sufficient savings, retirees may face challenges in meeting their daily expenses and maintaining a reasonable quality of life during their golden years.
Penang Chief Minister Chow Kon Yeow urged all stakeholders to take the matter seriously.
“An aging society presents significant challenges, particularly for those without sufficient savings.
“Employers must continue to care for the welfare of their staff, while employees need to plan ahead and save consistently to secure their future,” he said at Ascott Gurney Penang today.
Speaking at an Employees Provident Fund (EPF) northern region event to honour exemplary employers, Chow praised the commitment shown by Penang’s business community.
“The welfare of workers must remain a top priority, even as businesses strive for profits.
“I congratulate all employers receiving the ‘Majikan Terbaik Negeri Pulau Pinang 2024’ today.
“Your dedication to improving employee contributions and prioritising their well-being is an example for others to follow,” he said.
Chow also spoke about the Belanjawanku 2024/2025 guide and the new Retirement Income Adequacy (RIA) Framework have been introduced recently.
These initiatives aim to help Malaysians better manage their monthly living costs and plan effectively for retirement.
The EPF reported that as of October 2024, only 36% of active members aged 55 had accumulated savings up to the Basic Savings level of RM240,000 – a figure that may be insufficient for long-term financial security.
Launching in January 2026, the RIA Framework introduces a three-tier system to guide EPF members in achieving their retirement goals.
The savings targets under the framework range from RM390,000 for Basic Savings to RM650,000 for Adequate Savings, and RM1.3 million for Enhanced Savings, which ensures greater financial security.
Separately, Chow said in a statement that he was proud to learn that the contribution compliance rate in Penang stands at 99.15%.
“If all employers strengthen their collaboration with EPF, I believe we can achieve a 100% compliance rate in Penang,” he added.
Penang emerged as one of the top-performing states in Malaysia, with an impressive 99.15% compliance rate for EPF contributions, the third-highest nationwide.
Meanwhile, EPF northern region director Jeffary Mohamed Isa highlighted the significance of the event in recognising employers who play a pivotal role in supporting the national retirement savings system.
“The purpose of this event is to celebrate employers who have demonstrated excellent performance in fulfilling their responsibilities towards their employees, particularly in compliance with the EPF Act,” he said.
He emphasised that employers’ continued commitment ensures the financial well-being of employees, which is essential for strengthening the nation’s retirement system.
“The EPF highly appreciates the efforts of employers in ensuring contributions are made accurately and consistently.
“Their ongoing commitment forms the foundation for maintaining workers’ financial security in the future,” he added.
Out of 112,083 registered employers across the northern region, 38% (43,042) are based in Penang. This year, 32 employers are awarded the title of ‘Majikan Terbaik Negeri Pulau Pinang 2024’ (Penang Best Employer 2024).
Jeffary also noted Penang’s commendable progress in retirement savings.
As of October 2024, 29% of EPF members in Penang under the age of 55 have achieved the Basic Savings threshold, representing 199,000 individuals. Penang also leads the northern region in financial literacy, recording 36%, surpassing the national average of 29%.
“This achievement reflects the Penang government’s steadfast commitment to supporting the EPF agenda and helping members secure a better retirement future,” Jeffary said.
He also expressed gratitude to Penang Chief Minister Chow Kon Yeow for the state’s pioneering initiatives, including support for the i-Suri programme.
“Penang was among the first states to announce i-Suri support in 2022. To date, the state government has contributed over RM2 million, with incentives from the government amounting to RM19.5 million benefitting i-Suri members in Penang. Congratulations to the Penang government,” Jeffary concluded.
Also present was EPF Seberang Jaya branch chief Mohd Majdy Mohd Said.
Story by Christopher Tan
Pix by Darwina Mohd Daud
Video by Noor Siti Nabilah Noorazis