KUALA LUMPUR: The government has been urged to temporarily reduce workers’ contributions to the Employees Provident Fund (EPF) by three per cent to mitigate economic impact stemming from the on-going novel coronavirus (2019-nCoV) outbreak.
The Malaysia Retailers Association (MRA) and the Malaysia Retailers Chain Association (MRCA) said putting more cash into the people’s pocket would stimulate domestic consumption and subsequently assist the local retail market.
MRA and MRCA in a joint statement also proposed a 50 per cent reduction in electricity tariffs to retailers and shopping malls to help lower and manage their operational costs.
“Another immediate measure that can be taken is to halt the levy payment to HRDF (Human Resources Development Fund), thus supporting those retail businesses facing a slowdown in sales and those facing cash flow constraints,” read the statement by MRCA president Datuk Seri Garry Chua and MRA president James Loke.
The associations also urged the government to introduce a stimulus budget and relief package that would support businesses and their employees following the outbreak.
The stimulus package should also include measures to address firms’ short-term cash flow requirements as well as aiding sectors hardest hit by the epidemic.
Earlier this month, Economic Affairs Minister Datuk Seri Mohamed Azmin Ali had announced that government was considering introducing a stimulus package to help cushion the impact on the economy following the outbreak that has killed more than 500 people in China to date.
The stimulus package, Azmin said, would not only be an injection for the economy but also the safety and well-being of the people.
He had said that the ministry allocated RM227 million this year for the purchase of medical and non-medical equipment for all health facilities nationwide.