From the Employees Provident Fund to the National Social Protection: The Case of Malaysia
SSRC Working Paper Series No. 2017-3
24 Pages Posted: 17 Jul 2017
Date Written: June 2017
We introduce a new social protection fund concept, the National Social Protection Fund (NSPF). The NSPF incorporates the informal productive sector into the formal productive sector. The primary objective of NSPF is to create a robust national social protection scheme for all Malaysians by unifying the National Integral Social Security Fund (NISSF) and the National Education Fund (NEF). NISSF encompasses the actual employees' provident fund (α1), the non-employees provident fund (α2), and the unemployed insurance fund (α3). Hence, the NSPF can reduce income inequality and poverty in Malaysia in the short run. We perform simulations based on the application of the NSPF concept to Malaysia.
Keywords: Malaysia, EPF, Social Security, Social Protection, and Policy Modelling
JEL Classification: Y20
Suggested Citation: Suggested Citation