| Aziz Idris |
WITH a growing trend of millennials job-hopping more frequently than their predecessors, a proposal for a short-term saving scheme put forward by YB Iswandy bin Ahmad during the third day of the 13th Legislative Council (LegCo) session yesterday received positive feedback from other LegCo members.
The savings scheme is designed for millennials born between 1980’s to 2000, as this generation job-hops frequently in their search for better opportunities. Millennials, can earn a higher salary, grow their career, change locations more frequently, and find a better cultural fit from job-hopping.
YB Iswandy suggested that apart from the current retirement plans (SCP, TAP), the short-term savings can also be implemented in both private and the public sectors and be extended to higher educational institutions.
He gave the example of an undergraduate who receives a study allowance of B$300 per month – they can receive a total of B$1,440 at the end of their studies (four years) or an employee with a basic salary of B$1,000 can save up to B$12,000 for 10 years of service.
“Youths will be able to use their savings to start their own businesses or continue their studies and even act as a ‘buffer’ while waiting for a new job,” he said before adding quickly that the scheme should be voluntary and can start with a percentage as low as 10 per cent deducted from total salary or allowances.
Several incentives should also be given to youths that sign-up for the scheme to encourage a habit of saving and to improve the financial literacy among the community, he added.
The Minister at the Prime Minister’s Office and Minister of Finance II, YB Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman bin Haji Ibrahim in his response, acknowledged the suggestion with a positive note and advised “thorough research” be done before implementing the new scheme.
Meanwhile, YB Khairunnisa binti Haji Ash’ari suggested a similar topic to further improve the financial literacy among the community, especially among primary school students.
Her proposal was on the prevailing usage and awareness programmes on financial literacy to be targeted to children and youths, such as the basics of saving mechanisms and the value of money transactions. These are financial basics to be taught to students to prevent social problems arising from financial constraints.
She added that low financial literacy, among all classes of people, is the main factor behind the success of investment scams or ‘get-rich-quick’ schemes in the country.
In response, YB Pehin Orang Kaya Laila Setia Dato Seri Setia Awang Haji Abdul Rahman noted that several programmes have been organised by the ministry together with Autoriti Monetari Brunei Darussalam (AMBD) and financial institutions around the country to promote financial literacy.
Among them include the introduction of National Saving Day with the main objective to increase the public’s awareness on the roles and functions of AMBD as the central bank of Brunei, to encourage the culture of saving and sound financial management, and to develop a more financial inclusive society by promoting financial education and literacy.
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