PETALING JAYA: Malaysia is planning to introduce intergenerational wealth transfer within the Employees Provident Fund (EPF) to better prepare for the nation’s aging population, says Datuk Seri Anwar Ibrahim.
The Prime Minister said the scheme would allow EPF members to transfer part of their retirement savings directly to the EPF accounts of close family members, ensuring financial security for future generations.
In his Budget 2025 speech on Friday (Oct 18), Anwar outlined several initiatives aimed at enhancing social protection, with a particular focus on boosting retirement savings.
“EPF is reviewing its schemes to strengthen intergenerational transfers, allowing for the direct transfer of savings between family members,” he said.
In addition to this, he said the government will extend individual income tax relief on contributions to Private Retirement Schemes and deferred annuity premiums until 2030, encouraging Malaysians to plan for their long-term financial security.
Anwar also announced that incentives for the i-Saraan programme will increase from 15% to 20%, up to a maximum of RM500 annually, to encourage informal workers and those without fixed incomes to save for retirement.
Other measures include continuing the i-Suri matching contribution programme and covering 70% of contributions for the Self-Employment Social Security Scheme, with RM100 million allocated for this purpose, he added.
He said the government will also extend the Perlindungan Tenang insurance scheme in collaboration with Bank Negara, insurers, and takaful operators, benefiting up to 2 million recipients with a RM30 voucher to help cover costs for protection against risks like death, accidents, fires, and floods.
