By Shikin Louis
KUCHING, Nov 22: Sarawak is studying the feasibility of introducing a basic income or social pension scheme for its senior citizens, but the State must first strengthen its financial foundation before committing to such a long-term policy.
Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg noted that while several countries have adopted various forms of such scheme, many others are still evaluating its viability, as the model often involves debates between welfare-state approaches and universal entitlements.
“We are currently studying whether it is feasible or not to have that basic income scheme.
“But what we should do now, at the moment, we are focusing on increasing the disposable income and household income of our people in order to reduce poverty,” he said during the Sarawak Chamber of Commerce and Industry’s (SCCI) 74th Gala Dinner held at Borneo Convention Centre Kuching (BCCK) here last night (Nov 21).
Abang Johari was responding to one of the three proposals raised by Sarawak Chamber of Commerce and Industry (SCCI) president Datuk Philip Ting, who urged the State government to consider introducing a basic income or social pension scheme—a “Pillar Zero” retirement income—for all Sarawakians aged 60 or 65 and above.
Ting proposed a monthly payment of RM200 for life, arguing that similar models practiced in more than 100 countries have helped reduce inequality and stimulate economic growth.
Drawing from his experience on the Employees’ Provident Fund (EPF) board, he said retirees have a high marginal propensity to consume, estimating that such a scheme could increase Sarawak’s domestic GDP by RM200 million per month through multiplier effects, particularly benefiting the rural poor.
Abang Johari further said the State’s current strategy is to invest heavily in human capital development, including the provision of free tertiary education for all Sarawakians studying in Sarawak-based universities starting next year.
“If a family has two graduates, the household income will increase because they can work in high-income industries.
“If they are hardworking, perhaps they can increase their income further in their own enterprise which can expand beyond Sarawak’s borders,” he added. – DayakDaily
