News: Malaysia urges creative workers to contribute to Employees Provident Fund

Economy & Policy

Malaysia urges creative workers to contribute to Employees Provident Fund

Will a new EPF initiative be enough to ensure long-term financial security for under-protected creative workers?
Malaysia urges creative workers to contribute to Employees Provident Fund
 

With only 6% of creative talent enrolled in EPF, a new partnership with the film sector aims to expand workers’ coverage over the next two years.

 

KUALA LUMPUR – Malaysia’s Communications Minister Fahmi Fadzil is aiming to have at least 50% of the country’s creative sector contributing to the provident fund for workers. The official expressed enthusiasm about a new initiative aimed at including creative workers into the fabric of the Employees Provident Fund, or EPF, with the goal of boosting social protection across the sector.

This move is anchored in a memorandum of understanding between the National Film Development Corporation Malaysia (Finas) and EPF to ensure workers in the creative industries – particularly the film sector – can tap into EPF programmes, offering them a safety net and long-term financial stability.

The collaboration shines a spotlight on the importance of EPF contributions.

Fahmi urged employers and project organisers within the creative sector to realise their pivotal role in securing workers’ futures. “We cannot ignore the wellbeing of those who bring stories, culture, and art to life,” said Fahmi, as reported by the MalayMail.

“This initiative ensures that workers in the film and creative industries – regardless of whether they are freelancers or full-time employees – can access the same protections as workers in formal sectors. Their welfare is fundamental to the sustainability of the industry.”

EPF contributions lay the cornerstone for a more stable and secure future for workers. However, while creative professionals are integral to Malaysia’s cultural landscape, many remain without the safety net of EPF contributions, as reflected in low participation rates.

Malaysia’s creative industry currently employs some 70,000 individuals, but only 6% of them are contributing to and covered by EPF benefits.

After the introduction of the i-Saraan scheme in 2010 – which accounts for voluntary contributions – fewer than 4,000 Malaysians have taken part.

Yet, due to the unpredictable nature of project-based work, freelancers in the creative industry often face an unstable income, making it challenging for them to prioritise long-term savings when short-term financial pressures take precedence.

The i-Saraan scheme addresses this by allowing freelancers to voluntarily contribute to EPF, with the added benefit of government incentives. This helps to create a more secure financial foundation for the future.

In incorporating EPF contributions into government-funded projects, the initiative seeks to level the playing field for workers in the film and creative industries, offering them the same protections typically available to those in formal sectors.

As such, productions under Finas and Radio Televisyen Malaysia will now be required to include EPF contributions for all workers involved, helping to pave the way for broader uptake.

Fahmi has set a target for the next two years: to see at least 50% of workers in the creative sector enrolled in EPF, a monumental leap from the current 6%.

The government believes that expanding EPF coverage and promoting long-term savings will lay the groundwork for a more sustainable and financially secure future for those who help bring Malaysia’s cultural and artistic stories to life.

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Topics: Economy & Policy, Compensation & Benefits, #IndustrialRelations

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