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SEREMBAN: An economist today called on the government to expand the initiatives of the National Economic Recovery Plan (Penjana) instead of allowing withdrawals from the Employee Provident Fund (EPF) to further ease the financial burden of people affected by the Covid pandemic -19.
Barjoyai Bardai, from Universiti Tun Abdul Razak, also said that the government could introduce the food stamp system, which is a food stamp issuance system, to ensure that aid reaches the less fortunate.
He also proposed that banks or financial institutions extend the credit default period, which ended last month.
These measures, he said, were more appropriate than allowing EPF taxpayers to withdraw their savings from Account 1, which is intended for their old age.
“Taxpayers are really concerned and may feel that it is an easy way out, but EPF was created to ensure that workers have enough savings after retirement,” he told Bernama.
EPF Operations Division Deputy General Manager Mohd Naim Daruwish recently said that 54% of EPF contributors aged 54 and over have savings of less than RM50,000 for retirement, adding that only the 34% of EPF’s 14.6 million active contributors reached the basic level. age savings.
Alternatively, Barjoyai suggested that the government change the withdrawals to a scheme in which taxpayers would have to pay higher contributions in the future when the Covid-19 pandemic ends.
“They can take (from Account 1), but they should pay a slightly higher amount in the future. For example, if you are contributing 11% (of total monthly salary) now, you should increase it by 4%. Employers’ contribution can also be increased, ”he said.
On October 30, Prime Minister Muhyiddin Yassin said that accessing EPF members’ Account 1 savings to address the daily challenges caused by Covid-19 now could lead to taxpayers facing bigger problems in the future.
Yesterday, EPF CEO Tunku Alizakri Alias urged members to make an appointment with their Retirement Counseling Services officers to help them plan their finances, who can take into account all available forms of assistance and assist them. get through tough times.
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