Summary of the General Discussion on “The Long-Term Financial Sustainability of the Civil Service Pension Scheme in Malaysia”

Maria Socorro Gochoco-Bautista asked why the return on investment is assumed to be 5 percent, given low interest rates globally. She also asked whether it was possible to consider giving larger benefits rather than higher wages to civil servants as a way to keep a lid on pensions. Finally, she asked whether government could consider use of the inflation tax as a way to reduce the deficit burden from pensions.