Under Budget 2027, Malaysian citizens will be automatically registered as an EPF member upon turning 18. Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the measure is meant to help citizens begin saving for retirement earlier. Versa, Malaysia’s digital wealth and savings platform, sees it as a good first step, and its data shows what builds on it. Gen Z users with an auto-save savings plan hold four times more than the average balance of Gen Z users without one.
At a glance:
For an overview, here’s what this initiative and Versa’s findings encompass:
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Every Malaysian citizen will be automatically registered as an EPF member upon turning 18 in the beginning of 2027.
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Versa app data shows Gen Z users with automated savings plans hold 4x higher balances than non-automated users.
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66% of Gen Z respondents pick “investing early, even in small amounts” as a habit they want to pass on to the next generation in Versa’s survey.
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58% of respondents say they do not prepare regularly for retirement beyond EPF in Versa’s survey.
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32% of respondents pick “not planning beyond EPF for retirement” as a habit they want to unlearn in Versa’s survey.
What the budget announced
Anwar announced that every citizen will be automatically registered as an EPF member upon turning 18 to strengthen social protection and accelerate retirement savings. Currently, individuals are only registered when EPF receives their first employer contribution or via the i-Akaun application.
Other key measures affecting younger Malaysians include:
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A minimum wage increase to RM2,000 from June 2027 (up from RM1,700), with MSMEs under RM50 million in sales exempted. A proposed RM2,500 monthly floor for graduates and semi-skilled workers is also planned.
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PTPTN repayment deferment for borrowers earning up to RM2,500/month, and a RM50/month minimum step for those earning RM2,500–RM3,000.
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Full stamp duty exemption on loan agreements and transfer instruments for first homes priced up to RM500,000 (valid 1 Jan 2027 – 31 Dec 2030).
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An EPF matching incentive of up to RM600/year (capped at RM6,000 lifetime) for e-hailing and p-hailing drivers.
A good kickstart, fuelled by good habits
Registering every citizen at 18 serves as a useful kickoff policy by establishing an account from the start of adult life without requiring young people to set it up manually.
However, the founder and CEO Teoh Wei Xiang notes that registration only opens the account, what fills it over time depends on regular contributions. This distinction is highlighted by Versa’s survey findings:
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58% of respondents say they do not prepare regularly for retirement beyond EPF, including 20% who have not started saving elsewhere.
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29% of survey respondents identify “not planning beyond EPF for retirement” as a habit they actively want to unlearn.
To address this gap, Teoh points to personal financial habits as the critical driver of long-term wealth. Versa’s internal platform data reflects this difference: Gen Z users with an auto-save savings plan hold four times more the average balance of Gen Z users without one.
While Teoh emphasises that automated savings alone do not explain the balance gap, he believes the data points toward a shared sentiment among younger Malaysians. In Versa’s Malaysia Day survey, 66% of Gen Z respondents picked “investing early, even in small amounts” as a habit worth passing on, while 60% cited “how to invest, not just save” as the financial lesson they wish they had learned earlier.
Methodology
Generational findings are drawn from Versa’s Malaysia Day survey (“One Generation to the Next”), which polled 1,333 respondents in Malaysia via the Versa app, of whom 488 identified as Gen Z (born 1997–2012), 516 as Millennials and 329 as Gen X and above. Respondents identified their own generation, and employment status was not asked, so Gen Z respondents include both students and workers. Retirement preparation findings are drawn from the Versa Financial Wellness Survey, which polled 3,506 respondents via the Versa app between June and July 2026; these figures cover all respondents and are not broken down by age.
Platform findings are drawn from Versa’s own user data as of 9 October 2026 for Gen Z users with a Versa account, defined by date of birth (born 1997 to 2008, aged 18 and above). Users with an active auto-save savings plan are those with at least one active plan on Versa Save, and balances are the total across a user’s Versa funds. The comparison describes users and does not show that auto-save alone explains the difference.
Respondents are Versa app users and may not be representative of all Malaysians. Survey figures are self-reported, and all percentages are rounded. Some questions allowed multiple responses, so those percentages do not sum to 100%. Information on Budget 2027 is drawn from the Prime Minister’s Budget speech of 9 October 2026.
Also read: Budget 2027: 6 Things M’sians Need to Know, From Cash Aid to Higher Wages
