Pension scheme needs to be revised, says MIER

Safety net: The facade of Menara KWSP Kwasa Damansara. MIER has proposed the government considers announcing long-term policy direction towards mandatory EPF coverage for all workers in the labour force in phases.

PETALING JAYA: The government must find a way to address the nation’s social protection scheme, as the current coverage is below the global average and its efficacy remains poor, says the Malaysian Institute of Economic Research (MIER).

As of Dec 31, 2022, more than 40% of the workforce was not covered under any formal pensions and retirement programmes, the economic think tank stated in a statement post a policy dialogue recently on priorities ahead of Malaysia’s national budget 2024.