At the moment, around 42% of the working age population contribute to a formal sector pension scheme, resulting in a major coverage gap in older age financial support. — Reuters
KUALA LUMPUR: For better social pension schemes to materialise, there must be trade-offs taking place within the fiscal space, says the World Bank.
World Bank Group senior economist Matthew Dornan pointed out that Malaysia’s elderly social pension, Bantuan Warga Emas (BWE), which was introduced in 1982 with an eligibility age set at 60, is very tightly targeted with only 4% of the country’s elderly generation tapping into it.
