0 An Alternative Social Protection Scheme for Malaysia: The National Social Protection Fund (NSPF) Mario Arturo RUIZ ESTRADA 1 , Evangelos KOUTRONAS 2 , Donghyun PARK 3 , Norma MANSOR 4 Abstract This paper formulates a comprehensive pension fund framework for enhancing system capacity to manage economic and social risks. The National Social Protection Fund (NSPF) attempts to quantify informal sector, incorporated under a unified national protection scheme. The new protection mechanism consists of two sub funds: The National Integral Social Security Fund (NISSF) and the National Education Fund (NEF). NISSF encompasses all economically active Malaysian population, including the informal workforce, whereas the NSPF captures the economically inactive young population. Simulation findings indicate that education, health and income redistribution can improve the livelihood of the vulnerable population groups in Malaysia. Keywords: Malaysia, EPF, Social Security, Social Protection, and Policy Modelling JEL: Y20 1 Social Security Research Centre (SSRC), Centre for Poverty and Development Studies (CPDS), Faculty of Economics and Administration, University of Malaya, Kuala Lumpur 50603 Email: marioruiz@um.edu.my 2 School of Management, University Sains Malaysia, Penang 11800 Email: evangel_gr@usm.my 3 Asian Development Bank (ADB), 6 ADB Avenue, Mandaluyong City, Metro Manila, Philippines 1550. E- mail: dpark@adb.org 4 Social Security Research Centre (SSRC), Faculty of Economics and Administration, University of Malaya, Kuala Lumpur 50603 Email: norma@um.edu.my