BN’s support for the 2021 budget depends on the retirement of the retirement fund and the extension of the loan moratorium: Najib

KUALA LUMPUR: Former Malaysian Prime Minister Najib Razak said on Tuesday (Nov 10) that Barisan Nasional (BN) support for the 2021 budget is conditional on people being able to withdraw funds from the Employee Provident Fund ( EPF) and an automatic loan extension. moratorium during COVID-19.

“I would like the PN government (Perikatan Nasional) to take note that these two conditions must be met. Our support for this budget is subject to meeting these two conditions, “he said during the budget debate in parliament.

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The president of the BN backbenchers club said in his speech that the allocation for a higher withdrawal limit from the EPF 1 account was important, because the withdrawal limit of RM500 (US $ 121) for 12 consecutive months proposed by the Ministry Finance in the 2021 budget was insufficient. .

“The single withdrawal limit of up to RM10,000 is important and I would like to explain why. With this amount, Malaysians who have been affected by the pandemic could repay all their outstanding payments, such as utilities, insurance, housing fees, etc.

“The money could also be used as a basic model for people who have lost their jobs to start a business. An example would be that someone could buy a motorcycle to join a delivery service and generate income. This cannot be done with just RM500 a month, ”he said.

BN has proposed to increase the EPF withdrawal limit to RM10,000.

The former prime minister added that a higher withdrawal limit would not affect the fiscal deficit or contribute to the national debt.

Najib said the government should not deny people access to their own money when they need it most.

“Instead, the government should focus on how the (withdrawn) money could be returned to the account as soon as possible so that EPF members have the money there when they retire.”

There are three methods that can be done after COVID-19 to make this happen, he said. First, the government can help EPF win more lucrative projects.

The government can also increase the percentage of monthly contributions after the crisis is over. You could also change the dividend payment structure to a multi-tiered dividend structure. This would allow those with little savings in their account to get a higher dividend, he said.

The Pekan MP also explained that even if the four million members of the EPF withdraw the maximum amount of RM 10,000, the total sum involved would be RM 40 billion.

“Even then, not everyone would fully withdraw. So we can project a total withdrawal of maybe RM20 billion or RM30 billion that I think EPF can prepare and Bank Negara can buy government bonds owned by EPF to help the cause.

“Don’t let people say we asked for EPF and got CMCO instead,” he said referring to the Conditional Movement Control Order that has now been reinstated on the peninsula until December 6.

READ: Malaysia’s budget for 2021 is the largest in its history. Will it cushion the impact of COVID-19?

AUTOMATIC EXTENSION OF LOAN MORATORIES

On the issue of the loan moratorium, Najib, who served as finance minister during his time as prime minister, said that the extension of the moratorium was important to address the plight of middle-income people.

“We must admit that middle-income people are the least addressed in the 2021 Budget.

“We need to focus on them. Don’t wait until the M40 (middle 40 percent) become low-income people. For this reason, I urge that the moratorium be extended until June 30, 2021, “he said.

He added: “We need to give more money to the people, directly into their hands and the extension of the moratorium, just as the withdrawal of the EPF is one of the many ways that would help the people immediately.

“This can be done without affecting the fiscal deficit or increasing the national debt, so I urge the Minister of Finance to consider making these amendments to the 2021 Budget.”

Under the budget proposal, those in B40 (bottom 40 percent of households) who are beneficiaries of aid programs and microentrepreneurs will have the option of deferring loan payments for three months or reducing the monthly installment by up to 50 percent. for six months. months.

M40 borrowers who report a drop in income will also qualify for loan repayment assistance.

MORE FINANCIAL SUPPORT FOR SABAH

Following the Sabah state elections on September 26, Malaysia experienced a third wave of COVID-19 infections across the country.

Sabah, which registered a minimal number of cases before the elections compared to other states across the country, now has the highest numbers, amounting to 19,898 cases out of 41,181 cases registered nationwide as of November 9.

In this regard, Najib urged the government to reserve larger budget allocations for Sabah, which has been struggling under the weight of the pandemic.

“It was recently reported that Petroliam Nasional Berhad (Petronas) would pay RM1.23 billion to the Sabah state government next year. This amount has not been added to the budget, but if it is true, I urge that this money be channeled in the form of payments from Bantuan Prihatin Nasional where the Sabahans receive another RM1,000, ”he said, referring to payments under national law. stimulus package presented by the government this year.

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The secretary general of the Democratic Action Party (DAP), Lim Guan Eng, echoed him, who also said that the budget did not sufficiently address the difficult situation in Sabah.

“Sabah as a state and the Sabahans really need the allocations right now and it was unfair not to have allocations for them as part of the 2021 Budget.

“They are the most affected in this third wave and more needs to be done to ensure that their situation improves,” he said.

ALLOCATIONS FOR HEALTH, EDUCATION IN FOCUS

The Bagan MP added that areas that were critical but not adequately addressed in the 2021 Budget included health and education.

“The allocation (from the COVID-19 Fund) has been reduced to just RM17 billion for next year from RM38 billion this year and we don’t know why it should be reduced. Because in reality the allocations for COVID-19 must be large to face the problems derived from COVID-19.

“We see that the allocation for health (in the general budget) has increased by only 4.3%, which is much less than the increase of 6.6% during the Pakatan Harapan (PH) rule when there was no COVID-19 “. he said.

READ: Malaysia’s economy projected to grow up to 7.5% next year, says government while presenting expansive budget for 2021

Speaking about the education sector, Mr. Lim noted that in this year’s budget, PH had increased the allocation for education from RM60.2 billion to RM64.1 billion, representing an increase of 6.55 percent. . But under PN, the education budget only saw a one percent increase from RM64.1 billion to 64.8 billion.

“This does not show enough emphasis on the education sector. In fact, this is the opportunity to digitize the education sector, whether we ensure better Internet connectivity or ensure that all students, including those in higher education institutes, have access to laptops.

“Education is one of the most important sectors and with only four months of actual education this year, I can estimate that the losses run into the billions, so more needs to be done,” he said.

There have been fears that members of Parliament will block approval of the budget and turn it into a vote of no confidence against Prime Minister Muhyiddin Yassin. The king had previously urged lawmakers on both sides of the political divide to support the bill.

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