00:00An economist said the growth in voluntary EPF contributions can be attributed to the pension fund's continued strong performance and a rise in the disposable income of its members.
00:14Farik Sazuki from the Bayt Al Amanateng Tank also tied the spike to the iSara'an scheme benefits, a voluntary contribution program for self-employed and casual workers who do not earn a fixed income.
00:27Contributors under the iSara'an scheme receive a special incentive of 20% of their total voluntary contributions in a year from the government.
00:36Last year, over 1.2 million EPF members made RM13 billion in voluntary contributions, with an official attributing the numbers to the pension fund's steady dividend rates.
00:48Another economist, Calvin Cheng, said that while the RM13 billion figure was encouraging, it is likely premature to conclude that it reflects a structural shift in Malaysia's retirement-saving behaviour.
01:00Cheng, from the Institute of Strategic and International Studies, said temporary factors such as higher employment-to-population ratios and shifts in attitudes towards retirement savings are the main drivers in the growth of voluntary contributions.
01:16Panyu Zhou, FMT News.
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