BANGI: An in-depth study should be conducted on the salaries and wages of employees which takes into account the cost of living.
Employees Provident Fund (EPF) chief executive officer Tunku Alizakri Alias said that amidst rising prices, emphasis should be placed on increasing the wage levels of employees, not the percentage of contribution to the provident fund.
He noted that in Malaysia, the contribution of 12 per cent and 11 per cent by employers and employees respectively is already the fifth highest in the world and that there would be implications if these were increased.
“The increase will impact employees in terms of their take home pay and for employers, the cost of doing business, and these are quite sensitive issues.
“I would not recommend increasing the contributions hastily, and there should be more studies done before such an action is taken,” he told reporters after the launch of the “Belanjawanku” expenditure guide for Malaysian individuals and families here, today.
Tunku Alizakri said that the underlying motivation for developing Belanjawanku was the issue of low financial literacy, rising cost of living and over-indebtedness among Malaysians.
“This guide will also be adopted by our Retirement Advisory Services officers in providing our members with financial guidance and advice, in complementing what is essentially a flagship EPF service.
“We expect Belanjawanku to form the bedrock of society’s strong financial well-being, leading to a better quality of life in the long-term,” he added.
The Belanjawanku project was commissioned by the EPF as part of its financial literacy programme and the detailed research was done by the team at the Social Wellbeing Research Centre of Universiti Malaya.
When asked about the ongoing dispute between Malaysia Airports Holdings Bhd and AirAsia, Tunku Alizakri said that the EPF is pleased that both parties had taken the fund’s comments positively.
“AirAsia has already met up with us. MAHB will be meeting with us very soon,” he added.--Bernama