NATIONAL SOCIAL PROTECTION FUND: THE MULTI-PILLAR EMPLOYEES’ PROVIDENT FUND
This paper formulates a comprehensive pension fund framework for enhancing system capacity to manage economic and social risks. The National Social Protection Fund (NSPF) attempts to quantify the informal sector, incorporated under a unified national protection scheme. The new protection mechanism consists of two sub-funds: The National Integral Social Security Fund (NISSF) and the National Education Fund (NEF). NISSF encompasses all economically active Malaysian population, including the informal workforce, whereas the NEF captures the economically inactive young population. Simulation findings indicate that education, health and income redistribution can improve the livelihood of the vulnerable population groups in Malaysia.
Keywords: Malaysia, EPF, Social Security, Social Protection, and Policy Modelling, JEL: Y20.
Employee Provident Fund (EPF). (2014). Malaysia EPF Benefits. http://www.kwsp.gov.my/index.php?ch=p2members&pg=enp2membersgeneral&ac=1505
Feldstein, M. (1998). Transition to a fully Funded Pension System: Five Economic Issues. In Horst Sielbert (Ed.), Redesigning Social Security. Kiel: Kiel Institute of World Economics.
Holzmann, R. (2014). Old-Age Financial Protection in Malaysia: Challenges and Options. SSRC Working Paper No. 2014-3. Social Security Research Centre (SSRC), University of Malaya. Kuala Lumpur.
Koutronas, E., & Ismail, N. A. (2016). Savings Adequacy Assessment: The Case of Malaysian Employees Provident Fund Members. SSRC Working Paper Series No. 2016-2. Social Security Research Centre (SSRC), Faculty of Economics & Administration, University of Malaya. Kuala Lumpur, Malaysia. Retrieved from http://ssrc.um.edu.my/savings-adequacy-assessment-the-case-of-malaysian-employees-provident-fund-members/
Mansor, B. N., Syed Salleh, S. N., Tan, L. Y., Koutronas, E., & Aikanathan, S. (2014). Social Security in Malaysia: Stock-take on Players, Available Products and Databases. SSRC Working Paper No. 2014-2. Social Security Research Centre (SSRC), Faculty of Economics & Administration, University of Malaya. Kuala Lumpur. Retrieved from http://ssrc.um.edu.my/social-security-in-malaysia-stock-take-on-players-available-products-and-databases/
Mitchell, S. O., & Fields, S. G. (1995). Designing Pension Systems for Developing Countries. Retrieved from Philadelphia, PA:
Ong, F. S. (2001). Ageing in Malaysia: National Policy and Future Direction. University of Malaya. Kuala Lumpur.
Othman, S. H. (2010). Malaysia's Pension System From Multi-Pillar Perspective. Paper presented at the International Social Security Seminar, July 13-14, Kuala Lumpur.
Peng, T. N., & Tengku Hamid, T. A. (2014). Gender differentials in work and income among older Malaysians. In W. T. Devasahayam (Ed.), Gender and Ageing: Southeast Asian Perspectives (pp. 267-287). Singapore: Institute of Southeast Asian Studies.
Ruiz Estrada, M. A. (2011). Policy Modeling: Definition, Classfication, and Evaluation. Journal of Policy Modeling, 33(4), 523-536.
Ruiz Estrada, M. A., Chandran, V., & Tahir, M. (2014). An Introduction to Multidimensional Real-Time Economic Modeling. Journal of Contemporary Economics, 10(1), 55-70.