The Case For Government Intervention In Retirement Savings In Malaysia

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Has there been a market failure in retirement savings in Malaysia? Is government intervention now necessary to avoid an old age poverty catastrophe? We examine this issue.

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Do Malaysians save enough for their retirement? This debate has gone on for years. We examine this issue using savings in the Employees Provident Fund as a yardstick and then “add on” other forms of savings. We test whether there has been market failure and if government intervention is needed to avert catastrophe among the old.

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