KOTA KINABALU: Sabah is among the lowest Employees Provident Fund (EPF) contributors in the country.
EPF regional director for Sabah and Labuan, Mohd Fadil Sarehan, said this is due to several factors, including low financial literacy, wrong perception of EPF, and infrastructural and geographical challenges.
He said with approximately 1.8 million workforces in the state, only 958,197 were EPF members as of June 2024.
However, not all EPF account holders have savings in their account.
Mohd Fadil said that as of June 2024, approximately 235,000 EPF account holders have below RM5,000 in savings, while 103,000 have between RM5,000 and RM10,000.
Another 179,000 EPF members have between RM10,000 and RM50,000 in their EPF savings, and 60,000 have between RM50,000 and RM100,000.
Some 71,000 have between RM100,000 and RM500,000, while only 7,000 have half a million ringgit or more in savings, said Mohd Fadil.
Mohd Fadil said that it is vital to have proper savings to avoid financial constraints in the future.
"My advice is to save in EPF because it is among the safest platforms to keep and raise money," he said during the State Media Engagement Council (Sabah Chapter) here today.
Mohd Fadil said that statistics indicate an increase in the number of EPF members and employers in Sabah, reflecting a growing awareness of retirement savings among Sabahans and awareness of EPF contributions among employers in the state.
"To ensure that this trend continues to benefit the people of Sabah, support and cooperation from the media are essential," he said.
He also hoped that leaders, including assemblymen, would actively disseminate information and government policies to encourage more people to sign up for the EPF.
"Everyone can open accounts, from people with fixed incomes to self-employed individuals," he added.