KUALA LUMPUR - Almost half of Malaysians do not have savings to pay medical expenses as the nation hits aging status by 2030, said Finance Minister Tengku Zafrul Aziz.
He said based on International Labor Organization (ILO) data, only 47 percent of world's population has at least one type of social protection whereas 2.1 billion of the world's population are not covered by any social protection, despite facing the risk of accidents at work.
Malaysia also faces a similar situation, he said.
"A study by the National Health and Morbidity Survey (NHMS) shows that almost half of Malaysians do not have additional savings to pay for medical expenses.
"This is a challenge that will be faced by Malaysians because we are getting closer to achieving an aging nation as early as 2030," he said during the launch of EPF i-Lindung today at Shangri La Hotel, here.
He added, if the elderly are unable to meet their basic needs especially in covering medical costs, it will add up the cost to the government and taxpayers in the future.
The -Lindung scheme allows contributors to buy insurance plans at a lower price from a few ringgit a month.
"This is an important starting point to protect Malaysians and their families during emergenciee, from the risk of death, total disability and chronic illness.
These plans can replace additional income or savings during emergencies, he said.