PETALING JAYA: Former Klang MP Charles Santiago has proposed that the RM100 cash aid announced for all Malaysian adults last month be channelled instead to 6.3 million Employees Provident Fund (EPF) contributors who have less than RM10,000 in their accounts.
Santiago, an economist by training, said low wages have forced many Malaysians to dip into their EPF savings before retirement.
He said a targeted injection by Putrajaya would go a long way towards rebuilding Malaysians’ retirement fund.
He noted that Singapore’s Central Provident Fund (CPF) system includes employer contributions and regular top-ups by the state, especially for low-income workers and seniors.
“It’s a system designed to support people through retirement, not leave them scrambling to survive. That’s the difference: long-term thinking versus short-term patchwork,” he said, praising the government support for CPF.
“Retirement shouldn’t mean poverty. To make the (Malaysian) system stable, there must be regular top-ups from the government or employers, and through broader social protection schemes.
“Without fresh contributions, no retirement model can survive.”
In 2023, Prime Minister Anwar Ibrahim said 6.3 million EPF members, or 48% of those under the age of 55, had less than RM10,000 in EPF savings.
Meanwhile, a Khazanah Research Institute report last year found that 52% of EPF members aged 55 and below have less than RM10,000 in savings, potentially leaving them with insufficient funds for retirement.
