Pension breaking point

REALISATION that Malaysia’s pension liabilities have become a growing fiscal burden has forced the government to look at reforming the country’s costly and rapidly expanding pension scheme.

With pension payments projected by earlier estimates to grow to RM46.36bil by 2030 and RM120bil by 2040, it was recently reported that the government is looking at introducing a contributory scheme for newly appointed permanent civil servants to replace the current non-contributory pension system.