Friday, July 07, 2023

PM Anwar - Return EPF/KWSP account holders' monies that government 'allowed' to take out from OWN old age survival savings, to help Malaysia and Government ...?

Malaysian private sector worker, the Employees Provident Fund(EPF/KWSP) account holders have SACRIFICED too much for Malaysia over the years as Malaysian government 'got them' to withdraw savings meant for old age prematurely to help in Malaysia's economic problems, and to help themselves with their OWN monies, when the government ought to be providing financial aid to its people. 
Because of the irresponsible act of the government, only 18 per cent to have RM1,000 a month for 20 years post-retirement. This is certainly not enough to survive with the growing cost of living..
In one 'economic crises', the government needed people to spend monies to 'revive the economy' - so the private sector workers were 'ALLOWED" to break up their EPF accounts into 2, one where they can take out now for various expenditure. End result was that their 'old age savings' shrunk... YES, it did help Malaysia survive..
Then, during Covid-19, the government allowed additional withdrawals from their OWN EPF accounts for the workers to sustain their livelihood during difficult times. What should have happened should have been the government giving 'DIRECT AID" or even temporary loans to these workers. Again, the amount remaining in their EPF account meant for old age savings shrunk.
RIGHTFULLY, this Anwar Ibrahim PH-led coalition government should REIMBURSE these EPF account holders - monies could be directly paid back into their 'old age savings' accounts NOW > that 'aid' that the government should have paid workers to help them out during difficult times...
DISCRIMINATION - Yes, I believe there was, as the civil service pension funds, and even the old age funds for statutory body officers were not touched. Their pension payments until they die is SECURE. Only the EPF/KWSP account holders are at RISK of not having sufficient monies to live until their death ....they may end up POOR or extremely poor.
With the DROP of the RINGGIT, and the ever growing COST OF LIVING - these EPF/KWSP account holders who simply do not have enough monies is at GREAT RISK - majority may have enough monies to survive maybe just 4-5 years at most. What happens after that?  
Remember also that many of these EPF account holders are burdened with monthly debt payments even after they reach the retirement age - housing loans and other loans > so, they are in need of monies more than is required for food, healthcare, transport, electricity, water, sewage, communication, TV, etc. How will they even SURVIVE?

A National Pension Scheme for all, set up and guaranteed by the government, not some private company or insurance that can always go 'bankrupt', is needed fast starting now requiring minimum monthly contributions starting when they start earning at 18 or 21. The UKs State Pension scheme is something Malaysia should consider

The full new state pension is now £203.85 a week (about RM1,211.67 per week) – ...You get your state pension – a retirement income from the Government – in exchange for paying national insurance throughout your working life (or by qualifying for national insurance credits).

That will ensure that ALL will have a reasonable monthly PENSION until they die. And the government can even 'top-up' if needed.

Now public officers, MPs and even ADUNs have pensions - some too high until they die. Should monthly pension payments made by the government be CAPPED - a maximum set at maybe RM5K. How much pension is being paid out to Najib - pension as former MB of Pahang, pension as former Prime Minister?
If you have RM240,000 at 55 years in EPF - then, you can get RM1,000 monthly to survive for 20 years - what if live beyond 75? How much really will you need to survive, taking into account even monthly loan payments for your only house? With increased cost of living, RM1,000 per month is simply not enough...
Remember, it was the government that kept wages low - to encourage foreign investors coming to Malaysia.
Remember, it is the government that failed to ensure REGULAR EMPLOYMENT until retirement, which would also mean increasing income with tenure. Malaysian government is now allowing short-term contract employment - meaning most will be out looking for new contracts when their employment contract ends - and will grasp at anything even if with the same or lower income. The MINISTER has the power to ensure that all employers provide REGULAR EMPLOYMENT - and abolish short-term contracts.If
It is the government that allowed for Contractor For Labour - so you are not in an employment relationship with the employer of the place you actually work - meaning you also have NO RIGHT to demand better rights, wages or even better working conditions from the owner of the place you actually work - You are only an employee of a labour supplier, who do not even have jobs for you... Abolish contractor for labour > ensure direct employment relationship with owner of the place you work.
The government is NOT preserving jobs - and allowing automation. How many Malaysian tol operators lost their jobs, when tol collection became automated.

If there is a demand for labour, wages will increase - but rather than allowing this to happen, the government brought in too many migrant workers to ensure low labour cost - translated into low wages for all workers including Malaysian workers. With the increased dependence on migrant workers at a low wage, Malaysia has lost local skilled workers in a lot on industry like construction and even agriculture...With the ringgit dropping, Malaysia becomes less attractive to migrant workers ...

Malaysian workers are at risk - and it is not just limited to their 'old age savings' and difficulty to survive post retirement as cost of living is just rising and rising. Savings that were sufficient before is no longer enough to sustain them till death...

CARE for the people and workers of Malaysia - Mr Prime Minister...

EPF CEO : Only 18 per cent to have RM1,000 a month for 20 years post-retirement

KUALA LUMPUR: Employees Provident Fund of Malaysia (EPF) chief executive officer Datuk Seri Amir Hamzah Azizan today said that as of May 2023 only 18 per cent of total members meet basic savings by age, which will enable them to have at least RM1,000 a month over a 20-year retirement age.

The benchmark EPF uses to determine Basic Savings achievement by retirement age of 55 years old is RM240,000.

This translates to RM1,000 per month over a 20-year retirement period.

As of May 2023, Amir said only 30 per cent of its active formal members meet basic savings by age, while only 18 per cent of it total members meet the same threshold.

EPF has 15.8 million members.

"Indeed, the inadequacy of retirement savings is worrying, as it highlights deep-rooted contributing factors. To compound matters is the blend of other multiple factors such as a low wage structure, misalignment between full withdrawal age and retirement age, inconsistent contributions and under-employment, as well as a low rate of financial literacy," Amir said in his opening remarks at the International Social Wellbeing Conference 2023 (ISWC 2023) today"

"As the EPF's membership now reaching a large network of 15.8 million members, we strive to implement long-term strategies to create a positive impact and foster wellbeing," said Amir Hamzah.

Among others, he said the EPF is now focused on the extension of EPF coverage and to enhance members' retirement savings adequacy.

With only 56 per cent of Malaysia's 16.7 million labour force having some form of formal social protection coverage, the EPF has deployed mobile units to reach out to seven million people in the informal sector and self-employed, who could become an EPF member.

Besides that, the EPF he said is also exploring various other approaches to enhance the national pensions and retirement landscape. This includes a basic income drawdown option to strengthen its decumulation offerings to provide members with an additional source of retirement income.

"The establishment of Pillar 1 of the International Labour Organisation's Multi-Layer Income Framework is also another area that the EPF is actively studying through the introduction of a contributory national pension," he added. --ends--NST, 6/7/2023

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