Sunday, November 28

MoF will intervene to strengthen people’s retirement savings


PUTRAJAYA: The Ministry of Finance (MoF) will make an intervention, if necessary, to ensure the people’s retirement savings are strengthened for the long-term, said Deputy Finance Minister Datuk Ir Amiruddin Hamzah.

He said the financial institution policies and scheme relating to saving and retirement plans may be reviewed when Malaysia reaches an ageing nation status, expected by 2030.

He said a study by the Khazanah Research Institute had shown that too many people do not have sufficient monthly sources of income in the event of accidents, while retirees spent their entire retirement savings from financial institutions within five years.

“Our country is moving faster towards becoming an ageing nation than the European countries and the United States. Hence, we must take action to ensure the phenomena could be reduced,” he said to reporters after launching Affin Hwang Asset Management Bhd’s government and public sector communications office at [email protected] yesterday.

Amiruddin said the government would also intervene from time to time for the retirees so that it would not affect the facilities and benefits that have been enjoyed by this group.

However, to date, the government had no plan to review the Employees Provident Fund withdrawal scheme for retirees or future retirees, he said.

The government nevertheless had provided several programmes such as welfare assistance, electricity subsidy of RM40 and water subsidy in several states to lessen the financial burden of the retirees.

The government had also launched the B40 (Bottom 40 per cent household income group) National Protection Scheme (MySalam) and Healthcare Protection Scheme (PeKa) for B40 group to ensure the people and retirees under the scheme were safeguarded and in a comfortable situation without having to depend on their children.

On the opening of the new office, Amiruddin said he hoped the office, which has started operations since November 2017, would improve the skills of officers of the ministries involved in checking, evaluating and managing the investment proposals presented by the statutory bodies and government agencies.

Affin Bank Bhd chairman Gen (Rtd) Tan Sri Dr Mohd Zahidi Zainuddin said Affin Hwang Asset Management Bhd is currently among the three largest asset management companies in Malaysia, in which Affin Hwang Investment Bank Bhd owns a 70 per cent stake while the remaining 30 per cent is owned by Nikko Asset Management International Ltd.

According to him, the total assets under the management of Affin Hwang Asset Management hits RM48 billion currently.

“The opening of the office in Putrajaya represents our dream ever since we started managing funds of the government statutory bodies.

“The objective of the office opening is to foster closer relationships between Affin Hwang Asset Management and the ministries under the federal government’s administration, besides sharing knowledge and experience in investment management,” he said. — Bernama