Summary
Between 2020 and 2022, around USD$33 billion was withdrawn from Malaysia’s pension fund, the Employee Provident Fund (EPF), to help mitigate the impact of the COVID-19 pandemic. Now, about half of EPF contributors under the age of 55 have less than MYR10,000 in their accounts. And according to EPF officials, only 4 per cent of Malaysians can afford to retire.
As soaring inflation and the weak ringgit drive up cost of living, the opposition has piled pressure on the government to allow for another round of EPF withdrawals. But Prime Minister Anwar Ibrahim has resisted further drawdowns. Can Malaysians afford to retire? What plans does the government have to replenish the pension fund? Is Malaysia facing a retirement timebomb?
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