Balancing future savings and present demands
Shaznina Rozman
August 15, 2023 12:32 MYT
August 15, 2023 12:32 MYT
Fostering financial literacy and democratizing investment avenues become pivotal in fostering a broader investor base, catalyzing equitable wealth accumulation. Filepicture by Astro AWANI
KUALA LUMPUR: In the efforts to reignite Malaysia's economic prowess, there is a need for a strategic shift towards skill enhancement and value-chain progression
Chief Executive Officer & Country Head of Principal Malaysia, Munirah Khairuddin said, one such challenge that must be addressed is the illusion of tapering inflation, masking the deeper concern of diminished competitiveness and skill gaps.
Meanwhile, Chief Strategy Officer of Employees Provident Fund (EPF), Nurhisham Hussein said that the recent policy pronouncements have given rise to a renewed sense of optimism.
"The expansion of coverage for EPF and other social protection avenues, indicative of an evolving social contract, offers a chance for Malaysia to mend its fragmented safety net", said Nurhisham.
He added that a strategic reallocation of resources becomes paramount, reinforcing the floor that was exposed as precarious during the pandemic.
Both Nurhisham and Munirah were guests during an interview session on Niaga AWANI.
During the session, Munirah also touched on the importance of striking a delicate balance between current debt and future aspirations calls for disciplined financial planning.
"The burgeoning debt levels, especially among the youth, underscores the need for education and prudent management", Munirah added.
She said, while the allure of maintaining a certain lifestyle persists, a shift towards financial discipline is the cornerstone of navigating issues such as housing affordability, retirement planning, and insurance coverage.
On the challenges surrounding retirement savings, Nurhisham said Malaysia finds itself at a crossroads.
He added that a symphony of reforms is being orchestrated, aiming to harmonize a multi-layered pension system.
"The harmonious interplay of mandatory and voluntary contributions paints the future landscape, as individuals take charge of their financial destinies,"
"In the quest for a comprehensive pension solution, the nation reevaluates its social contract, fostering a resilient foundation for future generations", Nurhisham added.
He also said that fostering financial literacy and democratising investment avenues became pivotal in fostering a broader investor base, catalyzing equitable wealth accumulation.
Meanwhile, Munirah said, in the era of personal financial responsibility, Malaysians hold the key to their destiny.
As Malaysia navigates the intersection of savings, investments, and societal needs, the transformative journey beckons, underpinned by the promise of a brighter tomorrow.