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New pension proposals aim to enhance Malaysia's social security framework

The Malaysian Institute of Economic Research (MIER) has called on the government to enhance the nation's social protection scheme, as over 40% of the workforce lacks coverage under formal pensions and retirement programmes. In a statement following a policy dialogue, MIER stressed the need to extend coverage to three main segments: service workers, business owners, independent workers, and the self-employed. The institute proposed a phased introduction of the mandatory Employees Provident Fund (EPF) coverage and the creation of a contributory national pension scheme (CNP). Additionally, MIER recommended universal cash transfer programmes, including allowances for children and the elderly. The proposals are aimed at boosting social security and attracting investments, with potential investments worth MYR643bn waiting to be realised.

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