Saturday, November 07, 2020

Government, Care for ALL - foolish to ask workers to take from their SAVINGS and spend, when they should get direct assistance from Rakyat's monies

Use government monies, the Rakyat's monies, to help the unemployed and those that have lost income due to Covid-19 pandemic - asking private sector workers and others with EPF/KWSP accounts to take out their OWN SAVINGS is totally wrong. These are savings for old age.

For the public sector workers(penjawat awam), Covid-19 have not affected their employment or their monthly income, and after retirement, they will continue getting monthly pensions from the government until they die (and after that their spouse(wife/husband) will continue getting partial pensions until they die.

BUT for the private sector workers and the self-employed, all they will get after they retire is THEIR savings for 'old age' in the Employee Provident Fund(EPF) or KWSP, they have no PENSION until they die - and the monies in their EPF accounts are certainly NOT ENOUGH for their 'old age' - it is estimate that for most, it will currently last less than 5 years ...and after that, what? 

EPF - 68% EPF members have less than RM50,000 - will last only 4 1/2 years? UMNO-BN Failure?


More than two-thirds (68%) of EPF members aged 54 had less than RM50,000 in EPF savings! With the household poverty line income at RM930 monthly, RM50,000 in savings will only last 4½ years. The bottom fifth of EPF members have average savings of only RM6,909!

 EPF has suggested that the minimum savings that EPF contributors should have at age 55 is RM228,000. What’s startling is that only 18 per cent of contributors have that amount minimum savings target of RM228,000 in their account by 55. At RM228,000, this equates to a monthly withdrawal of RM950 to cover basic needs for 20 years.

EPF/KWSP savings belonging to the private sector workers was 'VIOLATED' before by the government, and now we have Account 1 and Account 2. Monies in account 2 can be taken out to buy houses, etc >>> and the reason this happens was again to help the Malaysian economy - the government needed people to spend more -  

According to EPF, 70% of members who withdraw their funds at age 55 use up their savings less than a decade after retiring. Most EPF savings are therefore not enough to stay out of poverty after retirement.

The Malaysian government must be responsible for ALL Malaysians and their families - So, just continue providing all that have lost jobs and/or income due to the Covid-19 Pandemic monthly payments of at least RM1,000.

The Budget that ought to be approved is simply monies required for ordinary operation of government (salaries and pensions of public sector employees, needed cost to operate schools, hospitals, etc..)

How can monies be saved? 

Cut the size of the Cabinet -  

Remove additional allocation to government MPs/ADUNs

Make sure that all monies paid to GLC Directors that are public servants(who already receive monthly wages/allowances) directly flow back to government coffers.

Reduce or limit allowances, etc paid to GLC Directors - that will translate to greater profits for the GLC, and hence greater profits for the governments. (Director total monthly allowances should be limited to not more that  RM10,000, and CEO salaries should also be limited to not more than salaries of the Prime Minister(Bonus will be based on percentage of profits)

Enact law - MPs and Ministers SHALL NOT RECEIVE any other monies from any other sources, save salaries and/or allowances paid to them as Ministers/MPs > this will certainly reduce corruption, kleptocracy, abuse of power too...No more cases of a PM receiving RM billions?

Limit pensions - set out a maximum, which should be no more than RM10,000. (After all it is the Malaysian people that pay these pensions...)

Government should not borrow anymore - because at the end of the day, the people suffer. Now Malaysian budget is wasted for debt servicing, etc >> about 12% or more now. That monies could have been spend for so many other needed things for the benefit of all people everywhere in Malaysia. Now, even big towns and medium sized towns do not even have swimming pools and government sports facilities.

We do not know how long Covid-19 will affect us - and there is always the possibility of supplementary budgets tabled later stick to basics.

For Covid-19 response,

Monies to the people who have lost jobs/income - at least RM1,000 per month.

Monies to get computers and internet services - so that the poorer students can also study online from home.

Subsidize electricity, water, telephone/communication bills to help the affected. Do you know that TM now charges RM52 if their staff if the problem of lack of service is caused by something in the homes of the consumer, it was about RM25 before.

Hospital charges including ward charges and Covid Testing charges should be ZERO or minimized.

Quarantine charges for Malaysians and their family(irrespective whether they are citizens or not) shall be waived.

The problem is that we do not know how long the COVID-19 will last - and there may emerge other needs later that the government may need to spend...Hence, unlike any other previous BUDGETS, keep this minimal - for there is always the possibility of SUPPLEMENTARY BUDGETS later on...

Looking at the PN Budget, it seems to be an 'Election Budget' with many allocations are religion based or ethnic-based > This should not be at this stage...Further more, we our Prime Minister(and his Cabinet) may no longer even have the confidence of the majority anymore ...this should have been the FIRST AGENDA of Parliament ...for now we may have an 'illegitimate' budget being tabled by a government that has already been rejected???


Experts: EPF withdrawal will deplete people’s savings but may help economy

PUTRAJAYA: Allowing workers to withdraw from the Employees Provident Fund (EPF) to tide over the economic impact of Covid-19 will deplete their savings but may help with the economy, say experts.

They said this after the Prime Minister announced that the government is studying suggestions to allow certain contributors such as laid-off workers to withdraw funds from Account 1 of the EPF.

“I have discussed with the Finance Ministry and we basically agreed and are prepared to study the proposal for contributors who really need to withdraw allocations from Account 1,” Prime Minister Tan Sri Muhyiddin Yassin said here yesterday.

The government has already relaxed the rules twice this year by lowering the EPF contribution by workers from 11% to 7% and allowing i-Lestari withdrawal of RM6,000 from Account 2.

Almost 70% of EPF members had opted to reduce their contribution to 7%, increasing the total disposable income to almost RM700mil per month, he said in an interview with Bernama and local television stations ahead of Budget 2021 tomorrow.

However, as more than 30% of EPF members have less than RM5,000 in their accounts, this may not help address the cash flow problems faced by contributors.

“(There are) some who have contributions of less than RM1,000. Hence, EPF savings will not necessarily be able to address their cash flow problem.

“If they draw down then they won’t have any savings for their future,” he said.

Account 1, meant for retirement, makes up 70% of a worker’s EPF savings.

“However, the government is always ready to study the proposal to help the rakyat who are facing difficulties and truly need (the funds),” he said.

A responsible government must balance the short-term needs of the affected individuals with their long-term future and requirements of retirement savings, he added.

As to the call by several parties to extend the loan moratorium, Muhyiddin said the government had discussed the matter with Bank Negara Malaysia and the Association of Banks in Malaysia.

“The government has received many responses on the need to extend the moratorium, especially for those affected,” he said.

The government will examine the approach to facilitate the process for those who really need support, he added.

Consumer Association of Penang president Mohideen Abdul Kader said many Malaysians are living without savings and their monies should be kept in EPF for retirement.

“If the withdrawals are allowed then there will be poorer people in Malaysia. People have to learn to live a simple lifestyle,” he said.

Mohideen said CAP has evidence that those who withdrew their funds from EPF often finished spending it in a few years.

“So, let the money be kept in EPF. It is the poor people’s bank,” he said.

Mohideen proposed that the government instead extend the moratorium and provide loans to those in need.

“We should not create more beggars” but rather people who can fend for themselves, he said.

Meanwhile, Malaysian Trades Union Congress deputy president Mohd Effendy Abdul Ghani welcomed the government’s move to review the proposal to withdraw from Account 1 of the EPF.

“I think that’s the right way to boost our economy. Because when people have money to spend, they will help boost the economy internally,” he said.

However, he wanted the government to conduct more studies before deciding on the limit for the withdrawal. -Star, 5/11/2020

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