Kuala Lumpur:The increase in the minimum wage to RM2,000 is regarded as a crucial reform in the labor market that aims to enhance workers' livelihoods and bolster retirement adequacy for Employees Provident Fund (EPF) members, stated Ahmad Zulqarnain Onn, chief executive officer of EPF.

According to BERNAMA News Agency, this wage increase is seen as a significant step towards ensuring a fairer distribution of national income, allowing the benefits of economic growth to be more widely shared. Ahmad Zulqarnain also expressed support for raising the living wage threshold at government-linked investment companies to RM3,400 and affirmed EPF's commitment to its full implementation.

Additionally, Budget 2027 has introduced measures to expand retirement savings access, such as automatically registering Malaysian citizens as EPF members when they turn 18. The budget also continues the i-Saraan Plus program, which offers e-hailing and p-hailing drivers a 20 percent government matching incentive, capped at RM600 annually and RM6,000 over a lifetime, until they reach the national minimum retirement age.

Ahmad Zulqarnain emphasized that EPF encourages its members to strategically plan their retirement savings. Through the i-Emas initiative, members can choose to receive monthly payments from their Age 55 and Age 60 Withdrawals instead of withdrawing the full amount at once. The retained savings will continue to earn annual dividends, thus extending the longevity of retirement funds as a source of income after retirement.