Can Malaysia afford government pensions as it becomes an ageing nation?
Malaysia is heading towards becoming an aged nation by 2040 with more and more Malaysians falling under the elderly category.
This then leads to the question of whether the country can keep up with pensions for government retirees.
Here’s a quick look at the numbers, based on the Ministry of Finance’s past annual Economic Reports and Budget speeches.
How much is the bill for government retirees really?
According to a chart in the Treasury’s Economic Outlook 2019 based on Ministry of Finance figures, Malaysia’s monthly pensions and gratuities (a lump sum given to civil servants when they retire) were below RM4 billion annually for the 1990-1999 period.
But by 2000, the pension cost reached almost RM4.19 billion.
In just 10 years, the pension cost then grew by more than three times to hit nearly RM13.57 billion in 2011.
The retirement charges have only kept going up annually, growing to almost RM18.22 billion (2014) and RM18.87 billion (2015).
Read more malaymail