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

See all articles by Mario Arturo Ruiz Estrada

Mario Arturo Ruiz Estrada

University of Malaya (UM) - Faculty of Economics & Administration (FEA)

Donghyun Park

Nanyang Technological University (NTU); Asian Development Bank

Norma Mansor

University of Malaya

Date Written: June 2017

Abstract

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

Ruiz Estrada, Mario Arturo and Park, Donghyun and Mansor, Norma, From the Employees Provident Fund to the National Social Protection: The Case of Malaysia (June 2017). SSRC Working Paper Series No. 2017-3. Available at SSRN: https://ssrn.com/abstract=2999600

Mario Arturo Ruiz Estrada (Contact Author)

University of Malaya (UM) - Faculty of Economics & Administration (FEA) ( email )

Kuala Lumpur, 50603
Malaysia
+60126850293 (Phone)

HOME PAGE: http://ssrc.um.edu.my/

Donghyun Park

Nanyang Technological University (NTU) ( email )

S3 B2-A28 Nanyang Avenue
Singapore, 639798
Singapore

Asian Development Bank

6 ADB Avenue, Mandaluyong City 1550
Metro Manila
Philippines

Norma Mansor

University of Malaya ( email )

Faculty of Economics and Administration Building
Kuala Lumpur, 50603
Malaysia

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