KUALA LUMPUR: Holding cash may feel safe, but hoarding it in bank accounts or low-yield instruments is an invisible tax in the future, according to JP Morgan Asset Management Asia Pacific chief market strategist Tai Hui.
Speaking at the Employees Provident Fund (EPF) International Social Wellbeing Conference (ISWC) 2026 in Kuala Lumpur, Tai warned that relying heavily on cash leaves retirement funds vulnerable to the quiet erosion of inflation.
“Too much cash tends to drag performance,” Tai told StarBiz, noting that while interest rates have recently improved globally, returns on cash remain stubbornly below inflation rates.
“Your savings are being undermined or eroded by inflation.”
Highlighting findings from a JP Morgan survey of 17,000 European individuals, Tai observed that while workers remain dependent on state and occupational pensions and are increasingly building private nest eggs, a persistent misconception remains: many still view cash as the best asset to generate returns.
“The point is for most markets around the world, when we look at international equity and international fixed income, investors are able to outperform cash over a five to 10-year period,” he said.
“So I think the answer really is that they have to stay invested rather than simply hide behind cash.”
While the EPF itself is well-managed and diversifies across a broad range of international assets, Tai advised Malaysians to evaluate their broader financial picture, particularly high-income earners who may hit EPF contribution limits and require private investments to bridge their retirement gap.
Under the theme “The Long Horizon”, the 13th edition of ISWC 2026 highlights how longer lives are reshaping the way people live, work, and prepare for the future.
Jointly organised with the Finance Ministry, ISWC 2026 convenes policymakers, global thought leaders, industry practitioners, academics, and international experts to explore practical solutions and policy responses to the realities of longer lives.
Meanwhile, in his keynote address read by Finance Minister II Datuk Seri Amir Hamzah Azizan, Prime Minister Datuk Seri Anwar Ibrahim said the planned National Ageing White Paper in 2027 must translate Malaysia’s National Ageing Blueprint 2025 to 2045 into coordinated and measurable action.
“The blueprint provides direction across the economy, employment, education, social protection, health, and long-term care.
“Long-term care will be one of the fastest-growing needs.
“Today, much of that responsibility is carried by families and, within families, disproportionately by women, often without formal recognition or sufficient support,” said Anwar.
He said financial security must advance alongside care.
“EPF initiatives such as i-Saraan have created a structured pathway for the self-employed to save, supported by government incentives.”
“The extension of i-Suri eligibility recognises women whose unpaid care work sustains families and communities.”
Furthermore, to government-linked investment companies (GLICs) and government-linked companies (GLCs), Anwar said national capital must serve national interest.
Speaking to reporters later on this, Amir Hamzah said GLICs and GLCs are stepping up their role in developing the domestic economy, backed by an additional RM120bil under the GEAR-uP initiative over the next five years.
“Last year, more than RM20bil was invested; the same is expected this year,” Amir Hamzah added.
