Invest Shariah Conference 2022: Alleviating Old-age Poverty Through Islamic Finance, 26 July 2022
|Date||Tuesday, 26th July 2022|
|Venue||Bursa Malaysia Berhad, Exchange Square, Bukit Kewangan, Kuala Lumpur|
|Time||03:55PM – 04:55PM|
|Topic||Alleviating Old-age Poverty Through Islamic Finance|
|Background||EPF stated in its recent report that the majority of Malaysians are ill-equipped for retirement. EPF estimates that 73% of its members will not be able to meet the already-low Basic Savings threshold of RM240,000 at age 55. Some 46% of contributors below 55 have less than RM10,000 in their EPF accounts. In fact, it is estimated that only 3% of EPF contributors can afford retirement as Covid-related withdrawals over the past two years have had a massive impact on the savings of contributors.
The stark reality is a huge wealth divide between the rich and poor. There are no safety nets for the poor, which can ultimately affect the social fabric, peace and security of the country. To further put the household income numbers into context, T20 possess 46.2% of the national income share, M40 have 37.4% of the national income share while the B40 get 16.4% of the national income share. This raises concerns whether Malaysia will suffer from the negative effect of old age, decreasing saving rates and possible unemployment in the future.
Note: Malaysians are categorised into three different income groups: Top 20% (T20), Middle 40% (M40), and Bottom 40% (B40). This is based on the Department of Statistics’ Household Income and Basic Amenities (HIS/BA) survey conducted twice every five years
|Moderator||Datuk Hisham Hamdan, Executive Director and Head Khazanah Research|
|Panellists||i) Tan Sri Dato’ Azman Mokhtar, Chairman, Lembaga Tabung Haji
ii) Nurhisham Hussein, Chief Strategy Officer, EPF
iii) Professor Emeritus Datuk Norma Mansor, SWRC