44% not saving, says UBD poll
Wednesday, August 1, 2007
A POLL by Universiti Brunei Darussalam (UBD) proved the need to cultivate a "savings culture" among Bruneians.
Among those who were surveyed, a whopping 44 per cent had no savings at all, while 55.1 per cent were indebted. About 68.3 per cent of those polled had some savings put aside.
The findings were disclosed during a panel discussion on pension funds and social security systems at the Brunei Roundtable 2007: Managing Today's Assets For the Future held Monday.
Speaking on behalf of Tabung Amanah Pekerja (TAP), Yusof Haji Abdul Rahman acknowledged the need for the Employees' Trust Fund to diversify investment into bonds and equities and areas which allow for optimal returns at an acceptable risk level.
"The 10 per cent contribution (compulsory five per cent from members and five per cent from employers) may be insufficient and most members are not prepared for retirement," the managing director said.
Currently, TAP is looking into incorporating financial planning into the Ministry of Education's curriculum.
In the meantime, to further educate the public on the importance of saving, TAP holds roadshows in schools and public departments, most recently at the Management Services Department.
Representatives of funds institutions from Thailand and the Philippines also took part in the discussions, namely, Singha Nikorphun from Thailand's General Pension Fund; Reynaldo Palmiery from the Philippines' Government Service Insurance System; Edgar Solilapsi from the Philippines' Social Security System; and Dr Soh Chee Seng from Malaysia's Social Security System.
In the case of Thailand, it was reported that its General Pension Fund (GPF), which was set up in 1997, had funds worth US$9 billion ($13.6 billion) at the end of 2006 when it only started with US$2 billion. The growth was attributed to investments.
GPF predicts the fund would grow to US$10.5 billion by the end of the year. Members are required to put in a compulsory three per cent from their salary, while another three per cent came from employers.
For the Philippine pension fund Social Security System, head of investments, Edgar Solilapsi, said the bulk of the fund's investment is in equities. The fund has nine million paying members with a contribution rate of 10.4 per cent.
As of December 2006, US$200 million has already been invested.
For Malaysia's Social Security System, contribution is set at 1.25 per cent of the member's pay. Members are from the private sector.
The Brunei Times
Among those who were surveyed, a whopping 44 per cent had no savings at all, while 55.1 per cent were indebted. About 68.3 per cent of those polled had some savings put aside.
The findings were disclosed during a panel discussion on pension funds and social security systems at the Brunei Roundtable 2007: Managing Today's Assets For the Future held Monday.
Speaking on behalf of Tabung Amanah Pekerja (TAP), Yusof Haji Abdul Rahman acknowledged the need for the Employees' Trust Fund to diversify investment into bonds and equities and areas which allow for optimal returns at an acceptable risk level.
"The 10 per cent contribution (compulsory five per cent from members and five per cent from employers) may be insufficient and most members are not prepared for retirement," the managing director said.
Currently, TAP is looking into incorporating financial planning into the Ministry of Education's curriculum.
In the meantime, to further educate the public on the importance of saving, TAP holds roadshows in schools and public departments, most recently at the Management Services Department.
Representatives of funds institutions from Thailand and the Philippines also took part in the discussions, namely, Singha Nikorphun from Thailand's General Pension Fund; Reynaldo Palmiery from the Philippines' Government Service Insurance System; Edgar Solilapsi from the Philippines' Social Security System; and Dr Soh Chee Seng from Malaysia's Social Security System.
In the case of Thailand, it was reported that its General Pension Fund (GPF), which was set up in 1997, had funds worth US$9 billion ($13.6 billion) at the end of 2006 when it only started with US$2 billion. The growth was attributed to investments.
GPF predicts the fund would grow to US$10.5 billion by the end of the year. Members are required to put in a compulsory three per cent from their salary, while another three per cent came from employers.
For the Philippine pension fund Social Security System, head of investments, Edgar Solilapsi, said the bulk of the fund's investment is in equities. The fund has nine million paying members with a contribution rate of 10.4 per cent.
As of December 2006, US$200 million has already been invested.
For Malaysia's Social Security System, contribution is set at 1.25 per cent of the member's pay. Members are from the private sector.
The Brunei Times
Business Besides Oil
