KUALA LUMPUR, Oct 19 ― The Employees Provident Fund (EPF) today signed a Memorandum of Understanding (MoU) with Uber Malaysia to encourage its ride-sharing driver-partners to save for their retirement through the 1Malaysia Retirement Savings Scheme (SP1M).
The SP1M is designed to allow individuals who are self-employed or with no fixed monthly income, such as taxi drivers, petty traders, farmers, housewives and freelancers, as well as Malaysians working abroad, to contribute to a retirement fund managed by the EPF.
EPF Chief Executive Officer, Datuk Shahril Ridza Ridzuan said the introduction of SP1M in 2010 was in response to the growing number of Malaysian informal sector workers who did not have enough savings or financial assets to provide for their retirement.
“We are pleased that Uber shares our concerns and has agreed to partner us.
“In addition, Uber has agreed to other areas of collaboration, including facilitating a series of financial planning talks by the EPF and allowing us to promote retirement planning to driver-partners,” Shahril said in a statement today.
Commenting on the collaboration, General Manager for Uber in Malaysia and Singapore, Warren Tseng, said Uber was thrilled to partner the EPF to help driver-partners make better choices for their retirement plans and future financial security.
“While driver partners have contributed greatly to improving urban mobility and connectivity, we now want to encourage them to take charge and be in the driver’s seat of their own retirement,” he added.
Under the SP1M scheme, individuals may voluntarily contribute a minimum of RM50 into their SP1M account up to a maximum of RM60,000 a year, and are entitled to earn dividends on their savings.
Driver-partners who become members of SP1M will also enjoy the same benefits enjoyed by current EPF members such as the RM2,500 death benefit.
On top of the yearly dividends and EPF benefits, the government contributes 10 per cent of annual contributions to a maximum of RM120 per year until the end of 2017, for members below age 55.
EPF said it is currently in discussions with the government to continue extending this benefit.
Statistics by the Department of Statistics Malaysia revealed that out of 22 million of Malaysia’s working population, a total of 6.8 million are actively contributing to the EPF and 1.7 million covered by the public pension scheme.
The remaining 13.7 million comprise individuals who are self-employed or freelancers not covered by any formal social protection programme in the country. ― Bernama