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by AUFA MARDHIAH
THE government has no immediate plans to introduce legislation on unexplained wealth orders (UWO), but will study the proposal further before making any decision, Finance Minister II Datuk Seri Amir Hamzah Azizan said today.
He said while the suggestion has been acknowledged, any move to adopt such a measure must be carefully considered to avoid unintended consequences.
“We will see it, but we’re not ready to do anything about this issue yet,” he told the press after the opening of the National Tax Conference 2025.
Amir Hamzah said the government must first understand the historical context and implications of implementing a UWO framework, which is often used in other jurisdictions to compel individuals to explain the source of assets suspected to be disproportionate to their declared income.
“We need to examine it thoroughly and understand the background before making any decisions, as it’s important to fully grasp the issue first,” he said.
The government is also exploring the feasibility of allowing monthly pension-style withdrawals from retirement savings to ensure Malaysians have sufficient funds later in life.
Amir Hamzah said the proposal, which is still being studied under the framework of the Fiscal Responsibility Act (FRA), aims to address concerns that some individuals deplete their retirement savings too quickly after gaining full access.
“If we can learn from other pension systems, where savings are withdrawn monthly, that might be better for the country,” he said.
Amir Hamzah explained that the concept is still under review, and any implementation would focus on new entrants to the system. Existing contributors, however, may be given the option to opt in.
He said the objective is to improve financial security during old age and ensure long-term sustainability of retirement funds.
“We want to do the study properly. Once we get a pass under the FRA, then we can look into how to implement it practically,” he added.
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