Pension Systems and Old-Age Income Support in East and Southeast Asia：Overview and Reform Directions

Old age income support will be one of the biggest social and economic challenges facing Asia in the twenty-first century. The growing spotlight on old age income support is largely due to exceptionally rapid population aging which is fundamentally reshaping Asia’s demographic profile. A young continent reaping the demographic dividend of a large youthful workforce is giving way to a greying continent where the ratio of retirees to workers is on the rise.

In contrast to industrialized countries, most Asian countries do not yet have mature, well-functioning pension systems. As a result, they are ill prepared to provide economic security for the large number of retirees who loom on the region’s horizon. This book takes a close look at the pension systems of eight countries in East and Southeast Asia – namely, China, Indonesia, Korea, Malaysia, Philippines, Singapore, Thailand and Vietnam – which encompass a wide range of income and development levels. The book provides a comprehensive overview of pension systems in the eight countries, including an in-depth diagnosis to identify their major weaknesses and shortcomings.

On the basis of the diagnosis, the book sets forth concrete and specific policy options for reforming Asia’s pension systems. Many policy options for reform are country-specific. For example, a top priority in China is to extend the pension system to rural areas. At the same time, a number of reforms – such as the need to extend coverage – resonate across the entire region. Appropriate reform will enable the region’s pension systems to deliver affordable, adequate and sustainable old-age economic security.

Donghyun PARK is currently Principal Economist at the Economics and Research Department of the Asian Development Bank (ADB), which he joined in April 2007. Prior to joining ADB, he was a tenured Associate Professor of Economics at Nanyang Technological University in Singapore. Dr. Park has a Ph.D. in economics from UCLA, and his main research fields are international finance and trade. His research, which has been published extensively in journals and books, focuses on policy-oriented topics relevant for Asia’s long-term development, including Asian sovereign wealth funds and Asian pension reform. Dr. Park plays a leading role in the production of the Asian Development Outlook, ADB’s flagship annual publication.

1. Introduction: Why Does Asia Need Well-Functioning Pension Systems?, Donghyun Park and Gemma Estrada 2. People's Republic of China: Pension System Overview and Reform Directions, Stuart H. Leckie 3. Indonesia: Pension System Overview and Reform Directions, Yves Guérard 4. Republic of Korea: Pension System Overview and Reform Direction, Seong Sook Kim 5. Malaysia: Pension System Overview and Reform Directions, Mukul G. Asher 6. Philippines: Pension System Overview and Reform Directions, Ernesto Reyes 7. Singapore: Pension System Overview and Reform Directions, Mukul G. Asher and Amarendu Nandy 8. Thailand: Pension System Overview and Reform Directions, Orin D. Brustad 9. Viet Nam: Pension System Overview and Reform Directions, Giang Thanh Long 10. Policy Options for Reforming Developing Asia’s Pension Systems, Donghyun Park