KUCHING, March 24: The federal government’s move to reduce Employees Provident Fund (EPF) contributions and allow workers to withdraw RM500 a month for one year is irresponsible, opines Malaysian Trades Union Congress (MTUC) Sarawak secretary Andrew Lo.
“MTUC is very disappointed at the government’s insistence to exploit workers’ already meagre EPF savings to bail it out of the economic malaise caused by the Covid-19 pandemic.
“It is embarrassing and morally wrong for the Prime Minister to claim that this is part of a package to assist the rakyat. It’s our own money,” Lo opined in a statement today.
He asserted that this also showed the government was bankrupt of funds and ideas and taking the easy way out.
“It shows a lack of leadership and is a result of years of incompetent economic management. At times like this, brave fiscal policies and able leadership are needed, not knee-jerk reactions,” he added.
According to Lo, almost 33 per cent of active EPF contributors have less than RM6,000 in Account 2 as of December 2018, while 28 per cent have less than RM10,000 in total EPF savings.
“Most of the B40 group fall into this category. So, we would like to advise all EPF members to maintain the monthly contribution rates and not to make the monthly withdrawal. Nobody is going to take care of them in their old age. They must demand from their YBs (elected representatives) that the government must provide the assistance,” Lo emphasised.
Lo was commenting on the second stimulus package announced by Prime Minister Tan Sri Muhyiddin Yassin which was telecast live yesterday.
Meanwhile, Lo praised the Sarawak government for the RM1.15 billion economic aid package announced by Chief Minister Datuk Patinggi Abang Johari Tun Openg yesterday.
“At least the Sarawak government is providing cash assistance of RM250 per month for six months to the B40. Such assistance is better than nothing and is welcomed.
“(But) it is sad that we have 430,000 of them, almost 30 per cent of the economically active population,” added Lo. — DayakDaily
