There was report that the mother did not allow the daughter to marry a business man but rather marrying a government servant.
Why Malaysians, especially the Malays, the largest government servants are of this ethnic group. Thus they have the tradition of seeing the parents have pension after retirement.
Though, the pension allowance from government would depend on the monthly salary last drawn before retirement.
Therefore, the higher the position one holds, the higher pension one gets. Of course, the retiree is not solely getting from the pension scheme of government, the high post government servants have more cash in hand and they could invest in other forms of investment even before they are retiring.
What we should look at the pension scheme for the government servants of which kill the talents of the people.
Here take a look of the disadvantages of pension scheme in Malaysia:
-- the government servants would not put in a full potential to work and help the government to progress as they have the stagnant income no matter how hard or good ideas in improving the weakness of government department.
-- these officers, especially would sit in the office until the day the retirement day comes. For them, whether to contribute to the progress of country or not, their salaries are at the scale.
-- only those who want to have a better future or looking for more satisfaction would leave the government service and join the private sectors.
Now, from the above disadvantages, you could concluded as :
-- EPF(KWSP) contribution is much better as the government servants can leave any time they like because they do not lose the benefits of pension. Their talents might be welcomed by other companies.
-- the switch of roles from private sector to government sector. The talented people could be employed by the government to change the progress of the system etc. These talents are not in the loosing end when retiring. The retirement fund is similar.
-- flow of talents for government sectors. The government can get better, highly creative people to contribute to the government sector for a few years. When the creative ideas dry up, they can leave the government sector without any worries.
In fact, Dr M tried to change the system from pension to KWSP contribution was a good scheme. No talents are lost.
The low grade government servants can leave the government sector and go into business as the KWSP has sufficient fund for them to do so. Therefore, the working staff in the government sector can be kept at the minimum.
Technology is going to take over from the large amount of jobs in future, in fact, not future, it is happening now.
Take a survey in the government sectors, how many people should be made redundancy.
Penang state should take the lead to implement KWSP for the new state employees. You can see the benefits and the less recruitment. But unfortunately, the government servants are the bullets for the politics.
https://malaysiakusayang.blogspot.com/2022/08/no-pension-scheme-for-penang-state.html
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