04/11/2025

TUESDAY | NOV 4, 2025

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King’s visit to Saudi Arabia, Bahrain will bring abundant benefits: PM

KUALA LUMPUR: Prime Minister Datuk Seri Anwar Ibrahim is confident that the state visit by His Majesty Sultan Ibrahim, King of Malaysia to Saudi Arabia and Bahrain will bring abundant benefits and the best returns for the people and the nation. Anwar, in a posting on Facebook yesterday, expressed gratitude to His Majesty for the state visit to the two countries. The prime minister also prayed that the departure of His Majesty and his delegation be blessed by Allah SWT, as well as be granted safety, well-being and success throughout the two state visits.

“I would like to apologise for not being able to bid His Majesty farewell due to my health constraints.” Sultan Ibrahim left for Saudi Arabia this morning for a state visit from today until Nov 6 as part of ongoing efforts to strengthen Malaysia’s bilateral relations with various other countries for the interest and benefit of the people and the nation. The special plane carrying His Majesty departed from the Royal Malaysian Air Force base here at 9 am. His Majesty is scheduled to continue his state visit to Bahrain on Nov 6. – Bernama

His Majesty Sultan Ibrahim departs for Saudi Arabia, marking the beginning of a historic state visit aimed at strengthening Malaysia’s ties with the Middle East. – BERNAMAPIC

Teaching our young to save for tomorrow

Nest egg for foreign workers

initiative with existing youth-focused financial aid programmes to ensure fairness and accessibility. He also said encouraging early EPF contributions could shape how young Malaysians view work, savings and long term planning. “It fosters a proactive attitude towards financial independence and reinforces the value of delayed gratification and responsible money management. “If effectively promoted through schools, digital platforms and community outreach, it could normalise retirement savings as a lifelong practice rather than a late-life concern. “The initiative can shift societal norms towards greater financial foresight and national retirement readiness.” – By Kirtinee Ramesh GEORGE TOWN: The 2% EPF contribution rate for both employers and non-citizen employees is a fair and balanced step aimed at ensuring social justice while maintaining Malaysia’s international reputation, according to Human Resources Minister Steven Sim. He said the move came into effect last month and is in line with international labour standards, including those set by the International Labour Organisation. Sim pointed out that the scheme provides three key benefits – reducing the outflow of foreign currency estimated at around RM1 billion annually, minimising the risk of workers absconding from their employers and creating an emergency savings fund for foreign workers while they are in Malaysia. “It’s not a retirement scheme like that for local workers. It’s a savings fund that can be withdrawn when they return to their home countries and it can also be used for emergencies, including in cases of death. “The rate is fixed. While it may seem small compared with the over 10% contributed by Malaysian workers, it at least provides basic social protection for foreign employees,” he said during the ‘Morning Talk with the Human Resources Minister’ session at the Tax Seminar on Budget 2026 here yesterday. Sim clarified that although the policy does not fall directly under his ministry, as the EPF is administered by the Finance Ministry, he wished to correct public misconception about its purpose. “The policy strikes a balance between economic and social objectives. “It also signals that Malaysia is committed to protecting workers’ rights and ensuring ethical governance in managing its foreign labour market. “Practically, it delivers immediate benefits to the country.”– Bernama

o Contributing to children’s EPF accounts seen as way to nurture financial discipline and long-term responsibility from early age: Parents

not seem like much now, but starting early makes all the difference later. This is part of my broader financial plan for her, alongside her education fund and small investments. It’s about teaching her long-term thinking.” For Aisyah, the EPF contribution is not just about accumulating savings, but about empowerment. “It’s reassuring to know that my daughter is already learning to take charge of her financial future. When she sees her savings grow, she feels motivated to continue. It’s a life lesson in responsibility and planning.” Meanwhile, Nurul Hidayah, 37, a general administration worker and mother of two, said she only recently learned about the option. “I honestly didn’t know that parents could contribute to their child’s EPF account – it’s not something that’s been widely shared. “When I first heard about it, I was quite surprised because it sounds like a really good idea. If I had known earlier, I would’ve started saving for them through EPF instead of just keeping their money in a normal savings account.” Nurul believes more awareness and education are needed to reach families like hers. “Most parents focus on education funds or insurance plans, but we don’t realise that EPF offers long-term growth and security too.

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

“The sooner my child starts contributing, the more time the savings have to grow. Even small amounts now can become something meaningful over time – it’s a practical lesson in how patience and consistency can multiply wealth.” Beyond savings, Tan views the move as laying a strong foundation for her child’s financial independence. “By saving early, my son is already building a safety net for his future. As parents, we can take comfort knowing they’re preparing for big life goals – further education, buying a home or even retirement – long before most people start thinking about it.” Another parent, Aisyah Humaira, 36, a teacher, shared a similar view and admitted she was initially unaware that parents could contribute to their child’s EPF account. “Once I found out, I looked into it and realised it’s quite straightforward to open one once they turn 14 although the process could still be made easier.” Her motivation goes beyond government incentives. “For me, the main goal is to help my child build the habit of financial security. I contribute a small amount monthly – it may

PETALING JAYA: As awareness grows about the option for parents to contribute to their children’s Employees Provident Fund (EPF) accounts, more Malaysian families are viewing the initiative as an opportunity to nurture financial responsibility and long-term security from a young age. For Maggie Tan, a mother of a 14-year-old, the programme has become an invaluable tool for teaching financial literacy at home. “Encouraging my son to start saving in EPF helps him develop responsible financial habits early on. It’s not just about money – it’s about discipline, patience and understanding how consistent effort leads to long-term rewards.” Tan believes that introducing children to saving and investment principles early can shape their financial mindset for life. “As parents, it’s a great way to teach them about managing money, setting goals and understanding that consistent savings bring long-term benefits.” She also highlighted the power of compounding growth through EPF’s annual dividends.

“If more parents knew about it, I think many of us would start contributing. “It’s a meaningful way to prepare our children for the future.”

See also page 11

i-Saraan initiative aims to future-proof Malaysians PETALING JAYA: Encouraging parents to contribute early to their children’s EPF accounts could play a vital role in strengthening Malaysia’s long-term savings culture and financial security, said Universiti Teknologi Malaysia Faculty of Management economist Prof Dr Nanthakumar Loganathan. Nanthakumar said i-Saraan stands out for its simplicity and accessibility. “Parents should consider it since the government provides a maximum RM500 incentive per child and registration can be done easily through the EPF website without the paperwork typically required by insurance companies.” “If the government

actively promotes this scheme through mass media and roadshows, it could strengthen household financial security nationwide. The real challenge is ensuring that Malaysians from all levels of society know this programme exists.” Nanthakumar also reassured that EPF’s monitoring and documentation would ensure transparency and safeguard contributors’ funds, adding that government agencies must step up outreach and public education efforts. Meanwhile, Universiti Teknologi Mara Department of Economics and Financial Studies senior lecturer Dr Mohamad Idham Md Razak said i Saraan marks a meaningful step towards early financial inclusion and disciplined saving habits among young Malaysians. “By introducing them to structured,

long-term saving mechanisms at an early age, the initiative cultivates financial literacy, encourages goal-based planning and familiarises youth with the concept of retirement preparedness – laying a strong foundation for lifelong financial resilience.” Mohamad Idham cautioned, however, that the initiative must remain inclusive. “There’s a risk it could widen the wealth gap if not accompanied by targeted support. Families with higher disposable income are more likely to contribute regularly, giving their children a financial head start, while lower-income households may not be able to participate meaningfully.” He suggested that the government consider matching contributions for lower-income families or integrating the

He said the initiative, supported by the government through the i-Saraan programme, offers significant potential for compounding growth and long term financial preparedness. “It will ensure faster growth in retirement savings for children, which can be very useful when they reach their golden years under what’s known as Akaun Emas. The long-term goal is to boost savings culture and prepare the nation for its ageing population by 2050.”

He added that early contributions could help close future financial gaps. “Malaysia will become an ageing nation by 2050 and today’s children under 15 will form the core of the workforce in 25 years. Early contributions made now could shield families from economic uncertainties and ensure financial stability in the years ahead.” However, he stressed that wider awareness and education are crucial for the programme’s success.