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Public Pension Programs in S outheast A sia: An Assessment
Author(s) -
Asher Mukul,
Bali Azad S.
Publication year - 2015
Publication title -
asian economic policy review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.58
H-Index - 20
eISSN - 1748-3131
pISSN - 1832-8105
DOI - 10.1111/aepr.12100
Subject(s) - pension , social pension , corporate governance , economics , business , investment (military) , finance , public economics , economic policy , political science , politics , law
This paper assesses public pension programs in select Southeast Asian economies ( I ndonesia, M alaysia, the P hilippines, S ingapore, T hailand, and V ietnam – henceforth referred to as the SEA 6) and the key issues facing them. The criteria used in assessing pension systems are the philosophy of pension design, the extent of coverage, investment policies and performance, and administrative and compliance costs. The paper argues that three broad reform directions to strengthen public pensions merit consideration. The first direction is to enhance the professionalism of the existing provident and pension fund organizations, including their governance practices. The second direction is to strengthen the role of noncontributory budget‐financed pensions (e.g. social pensions). The third is to adopt a systemic perspective to pension reform that includes reforms in complementary areas (labor markets, public financial management practices, and the civil service); developing a financing‐mix of pensions; and lastly, improving effective coverage by exploring complementarities between health care and pension programs.