One day, EPF may not exist, says CEO

(MMO) – The Employees Provident Fund (EPF) said today it anticipated further reductions in contributions as more workers go into the informal sector.

EPF’s new chief executive Tunku Alizakri Alias told international investors here that the total number of workers who contributed to the EPF had dropped drastically to just 40 per cent from 48 per cent from a few years ago.

And with a large number of the country’s 15 million-over workforce expected to reach retirement age soon, the fund could face more cash problems if contributors make huge withdrawals.

“There might be a day that EPF may not even exist anymore,” Tunku Alizakri told Invest Malaysia 2019, a conference on capital markets here.

The pension fund’s immediate challenge is to convince contributors to keep their money with the EPF, the CEO added.