We use cookies to improve your experience on our site and to show you personalized content. By continuing to use this site, you agree to our use of cookies.
More information on our Cookie Policy and Privacy Policy.

Asia School of Business

Menu
Menu
Global Inquiry, Local Heart
Global Inquiry, Local Heart
Edit Content
Executive Education
Alumni
Get in Touch

Day: November 7, 2023

The proposed Employees Provident Fund (EPF) Flexible Account could spell trouble for Malaysia’s pension system as it contributes to reduced savings of members over time, reflected by post-pandemic numbers, says experts. Asia School of Business practice professor of finance Joseph Cherian told Business Today that it appears that the proposed EPF Flexible Account aims to grant members more flexibility in accessing their accounts at any given time.

During the tabling of Budget 2024 on Oct 13, Prime Minister Datuk Seri Anwar Ibrahim announced that flexible EPF accounts would be introduced where contributors could access them at any time. He said the EPF accounts of contributors would also be restructured to empower the savings of retirees. Cherian said flexibility, in the form of special withdrawals allowed during the height of the pandemic, has resulted in the reduced EPF savings across the board.

“The government estimates that around RM145 billion of retirement savings was withdrawn by 8.1 million members, resulting in a 50 percent reduction in the post-pandemic median savings of members compared to its pre-pandemic level. “Indeed, median savings decreased from RM16,600 in 2019 to RM8,100 in 2022,” he said.

Center for Market Education chief executive officer Carmelo Ferlito – Photo from LinkedIn

Center for Market Education (CME) co-chief executive officer Carmelo Ferlito agrees with Cherian that a flexible account could depletes contributor’s median saving in the long run, especially if it doesn’t involved additional contributions. “I tend to agree with the judgement, in particular if the new mechanism is not based on additional contributions. People may always have some sort of emergency to use their savings,” he said.

Ferlito reiterates the proposed flexible EPF will be applied to existing contribution, Malaysia’s future savings is at risk, especially as the saving capacity is already pretty low for the country. “I would wait for the mechanism to be announced before advancing a comprehensive judgement. The priority should be the long-term financial stability of households,” he said.

Meanwhile, economist Tan Sri Ramon Navaratnam added the current EPF system is good but it could be refined and improved to be made more pragmatic. Last week, Deputy Finance Minister I Datuk Seri Ahmad Maslan said the government is finalising details on the withdrawal access to the proposed EPF Flexible Account and said there will be no withdrawal access from EPF accounts like previously. The current EPF savings scheme structure for members under the age of 55 consists of Account 1 and Account 2, with a percentage rate of 70% and 30%, respectively.

Originally published by Business Today.

Kuala Lumpur, Malaysia — 6 November 2023 Asia School of Business (ASB), a leading educational institution in Malaysia, is pleased to announce its strategic alliance with The Earthshot Prize, a global environmental initiative dedicated to accelerating innovative solutions to protect and restore the planet. This transformative collaboration underscores ASB’s unwavering commitment to shaping the leaders of tomorrow and advancing sustainable, eco-conscious practices, further reinforcing the school’s commitment to addressing pressing environmental challenges.

Within this influential partnership, ASB will leverage its formidable resources and expertise to accelerate innovative environmental solutions, particularly within Southeast Asia. The key objectives of this collaboration revolve around the identification, support, and fostering of entrepreneurship and startups that align seamlessly with The Earthshot Prize’s ambitious goals. ASB’s paramount focus will be on giving those environmentally responsible initiatives the business innovation and entrepreneurship tools to rapidly scale and ensure success.

The Earthshot Prize, founded by Prince William and The Royal Foundation, is a prestigious global award that focuses on identifying and financing solutions to repair the planet. The Prize revolves around five Earthshots: Protect and Restore Nature, Clean Our Air, Revive Our Oceans, Build a Waste-Free World, and Fix Our Climate. Sanjay Sarma, President, and CEO of Asia School of Business, underscored the significance of the alliance, stating, “Our affiliation with The Earthshot Prize underscores our dedication to addressing the most urgent environmental challenges. We firmly believe that education, innovation, and entrepreneurship are potent agents of change. By partnering with The Earthshot Prize, we can create a dynamic platform for fostering and scaling innovative solutions with global impact.”

This announcement takes place during a pivotal week for The Earthshot Prize. This year, for the first time ever, The Earthshot Prize annual awards ceremony awards ceremony will be broadcast globally from Singapore and will reveal the Winners of five catalytic £1 million awards. The awards will be accompanied by a series of events as part of Earthshot Week, supported by The Prize’s strategic partners Temasek Trust, Temasek, GenZero, and Conservation International.

The Earthshot Prize CEO Hannah Jones expressed her enthusiasm about this collaboration, stating, “The Earthshot Prize is thrilled to collaborate with Asia School of Business. Together, we can catalyze innovation, drive entrepreneurship, and inspire the next generation of leaders to champion environmental causes. ASB’s steadfast commitment to sustainability and transformative leadership education align perfectly with our mission.”

Through this ground-breaking alliance, ASB and The Earthshot Prize seek to nurture a new generation of environmentally conscious leaders who will be at the forefront of global environmental innovation. The Accelerator curriculum, hosted by ASB’s Innovation & Entrepreneurship Center, will be meticulously tailored to equip entrepreneurs with the skills, connections, and resources needed to position their ventures as compelling candidates for Pre-Series A and/or Series A funding rounds. This dynamic collaboration is tailor-made for eligible startups seeking to accelerate their growth while upholding environmentally sustainable and socially responsible practices.