UMNO deputy president Datuk Seri Mohamad Hasan noted that Budget 2022 did not include measures on how to restore the people’s savings in the Employees Provident Fund (EPF).
“Overall, it’s an inclusive and welfare-based budget. Various cash assistance is allocated to various targetted groups through the Malaysian Family Assistance scheme. Hopefully, this help ease burden of the affected group.
“But I’m concerned that it did not contain measures on how to restore the people savings in the EPF. Bear in mind that 46% of the contributors, under the age of 55, have less than RM10,000 in their accounts.
“What will happen to these people when they retire? If we leave it be, it will become a national problem which will eventually affect the Government in the long run,” he said in a Facebook post.
Since the beginning of the pandemic, the Government had allowed the public to withdraw monies from the EPF through the -Lestari and -Citra schemes, to help them mitigate the effects of COVID-19.
On Oct 3, New Straits Times reported EPF chief strategy officer Nurhisham Hussein saying that there is 60% decline in median savings among its 5.05 million contributors, particularly among the B40.
“This is the first time in our history. There were instances where some members wished to make withdrawals under i-Citra, but could not do so as they had depleted their savings.
“Almost half of EPF members have less than RM10,000. If we were to base on the minimum target of RM240,000 savings that EPF members should have upon reaching the age of 55, only 3% of us can afford retirement and sustain it with the savings,” Nurhisham was reported saying.
On that note, Mohamad Hasan lauded the Government for diversifying its revenue source by expanding its tax base, through the Tax Identification Numbers (TIN) and Special Programme for Voluntary Disclosure (SVDP).
Transparency a must
He added that the schemes, particularly the SVDP, will help strengthen the country’s fiscal measures as it would allow individuals and companies to disclose other revenue source which can be levied.
“This measure is important as we cannot rely on petroleum revenue alone to develop the nation as it is projected that it will only contribute 18.8% of our gross domestic product (GDP) next year.
“Plus, the volatility in the global crude oil prices will affect our revenue, affecting our fiscal strength in general,” the Rantau state assemblyman opined.
With that, he urged the Government to enact proper measures to ensure that the programmes mooted under Budget 2022 gets implemented properly, with the right target groups benefitting from it.
“This is where transparency comes in. An effective implementation of the said policies will rejuvenate the economy and support long-term growth.
“Only then, we can rebuild our resilience to weather future challenges which lies ahead,” he remarked. – Oct 30, 2021
