KUALA LUMPUR: Malaysia needs a comprehensive solution in preparation to becoming an ageing nation by 2030, including the introduction of special insurance for the elderly and focusing primarily on the issue of insufficient retirement savings of the Employees Provident Fund (EPF).
Pakatan Harapan’s Member of Parliament for Kuching City, Kelvin Yii Lee Wuen said amid rising global healthcare costs, Malaysia could adopt Japan’s long-term care insurance (LTCI) system which is funded through a combination of government/state tax revenues and policyholder premiums.
He said LTCI covers home care, domestic help, visiting nurse services, community-based services, community services and facility care, nursing homes for the elderly and so on.
“I know, one of the health financing modules, which is social health insurance, is being studied. For LTCI, maybe we can start with the elderly so that the financial burden of health can be controlled and they get the best care.
“The Social Security Organisation (PERKESO) has a mechanism that can accommodate this need, so we only need a policy direction, guideline and ‘political will’ to do it,“ he said when debating the Motion of Thanks for the Royal Address in the Dewan Rakyat today.
Yii also informed that the increase in living expenses and the withdrawal of a large part of the EPF savings during the Covid-19 pandemic has caused some members to be ‘poor before they retire’.
He said, of all EPF members, only four per cent are able to retire comfortably with savings of RM600,000 and above.
Therefore, he suggested that the government take this issue seriously.
“So what is the government’s plan to address the issue and does the government plan to review contributions from employers and employees, to ensure higher savings after retirement?
“The pension system has been reformed and (will) be changed to the EPF. I support this reform even though it is a bit acerbic but does the government want to increase the contribution for example to two per cent to the EPF to civil servants first before providing a framework for other workers (sectors)?
“Although this policy is good, it needs to be discussed comprehensively, including between stakeholders and employers and it should be implemented when the economic situation is conducive for all parties,“ he stressed. –Bernama
