An urgent challenge - THAILAND REPORT - Magazine | Asia Asset Management

Sukhumvit Soi 58 food market is a haven for Thai cuisine in Bangkok that draws many food bloggers. There are more than 20 stalls, each offering authen...

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Thailand , Bangkok , Krung Thep Mahanakhon , Thai , Sukhumvit Soi , , Sukhumvit Soi 58 Food Market Isa Haven For Thai Cuisine In Bangkok That Draws Many Bloggers There Are More Than 20 Stalls , Ach Offering Authentic Thai Food It Amp Rsquos Likea One Stop Centre For Anda Popular Destination Locals And Tourists Alike Thailand Pension System Is Like The Market In Some Ways , Ith Many Different Types Of Schemes Supervised By Authorities There Is The Social Security Fund Ssf , Hich Provides Pension And Social Security Protection To Private Sector Employees The Self Employed It Falls Under Labour Ministry Then There Is Thailand Government Fund Gpf , Hich Manages Retirement Savings For Civil Servants , Nd Falls Under The Purview Of Finance Ministry , Hich Also Supervises The National Savings Fund Nsf , A Voluntary Pension Scheme For All Thai Nationals , N Top Of That , Arge Private And State Owned Organisations Such As The Provincial Electricity Authority Have Set Up Their Own Retirement Funds For Employees But Whilea Market Offeringa Variety Of Food Is Good , He Same Cannot Be Said Ofa Pension System With Multiple Schemes For One , Here Is No Economies Of Scale , Hich May Mean Higher Costs And Lead To Lost Investment Opportunities For Another , Aving Different Entities Overseeing Retirement Funds Is Unnecessarily Complicating For The Pension System Amp Ldquo When You Look At Thailand Rsquos Schemes , E Have Everything We The Basic Pillar , Pillar Two , Nd So Forth We Cover All Stakeholders , Mp Rdquo Srikanya Yathip , He Then Secretary General Of The Gpf , Bserved Duringa Panel Discussion Organised By Asia Asset Management Last October Longer Life Expectancy There Are Three Pillars Ina Pension System The First Pillar Is Intended To Providea Safety Net For Elderly It Typicallya Mandatory , Ublicly Run Pay As You Go Defined Benefit Scheme That Is Financed Through Social Security Contributions Of Employees In Thailand , Ll Senior Citizens Get An Old Age Allowance Of 600 Baht Us 16 50a Month Ssf Members Receivea Monthly Pension Once They Retire Provided Have Contributed For At Least 180 Months The Second Pillar Is Designed To Supplement Benefits First Througha Fully Funded Defined Contribution Scheme And Third Comprise Private Retirement Savings Options , Ith Public Involvement Limited To Regulation Ensure Investor Protection Amp Ldquo But The Problem Is That Different Pension Schemes In Thailand Belong Ministries We Havea Lot Of Working On , Mp Rdquo Srikanya Said By Contrast , Hailand Amp Rsquos Neighbour To The South , Malaysia , As One Pension Fund Responsible For The Retirement Savings Of All Private Sector Employees , Nd Another One For Civil Servants Singapore , He Most Developed Country In Southeast Asia , As Just One Pension Fund Responsible For The Retirement Savings Of All Singaporeans According To Srikanya , He Main Challenge With Thailand Amp Rsquos Pension System Is Adequacy And Sustainability The Ssf , Hich Has About 18 Million Members , Aces Twin Issues Of Longer Life Expectancies And Fewer Contributors Amp Ldquo In Other Words , Sf Needs To Pay Its Members Amp Rsquo Monthly Pension Fora Longer Period , Hile The Number Of People Who Contribute To Ssf Is Declining This Could Affect Sustainability Scheme In Long Term , Mp Rdquo She Said Ssf Spokespersons Did Not Immediately Respond To Questions On The Issues Raised By Srikanya Tough Decisions There Are Solutions Help Improve Sustainability Of Thailand Amp Rsquos Pension System , Ut It Requires Political Will Anda Lot Of Education And Awareness Programmes , Ccording Toa Fund Manager Ata Thai Asset Management Company In Bangkok Amp Ldquo One Of The Ways Is To Increase Monthly Contributions Sss , Hich Currently Stands At 10 Of Total Wages , Qually Divided Between Employers And Employees The Contribution Amount Is Way Too Small Compared To Pension Schemes In Other Countries , Mp Rdquo He Says , Peaking On Condition Of Anonymity It May Sound Likea Simple And Straight Forward Solution , Ut He Concedes It Will Be Tough To Implement Amp Ldquo Not Easy Increase The Contribution As Would Mean That Take Home Income Of Members Lower So , Here Will Bea Lot Of Resistance If The Government Plans To Increase Ssf Amp Rsquos Contribution Rate , Mp Rdquo He Says The Government Is Planning To Introducea New Pension System Provide Better Protection For Senior Citizens It Has Proposed Legislation That Will Pave Way Formation Ofa National Basic Fund Old Age Allowance Be Increased From 600 Baht 3 , 000 Baht Under The Legislation However , He Fund Manager Has Reservations About The Plan Amp Ldquoi Do Not Question Government Rsquos Intentioni Believe It Good Intentions In Proposal , Ut Is It Necessary To Create Another Fund Solely For This Purpose Amp Rdquo , E Asks Amp Ldquo Instead Of Creating New Funds , He Government Should Consider Consolidating The Funds For Economies Of Scale And Efficiency Amp Rdquo Ldquo Large Benefit From Lead To Advantages In Administrative Costs Investment , Ecause Large Funds Can Spread These Costs Over Larger Amounts Of Assets , Mp Rdquo He Explains ,