KUALA LUMPUR: A reduction in the minimum contribution to the Employees Provident Fund (EPF) announced in the 2020 Economic Stimulus Package to combat the impact of COVID-19 is set to potentially unlock up to RM10 billion of private consumption.
Interim Prime Minister, Tun Dr Mahathir Mohamad said the reduction by employees will be reduced to seven per cent, from the current 11 per cent now, a reduction of 4 per cent.
“(However), Malaysian workers have the option to opt-out from the scheme and maintain their contribution rate,” he said when announcing the RM20 billion stimulus package themed: “Bolstering Confidence, Stimulating Growth, Protecting Jobs,” in Putrajaya today.
He also said the payment of RM200 to all Bantuan Sara Hidup (BSH) recipients scheduled for May 2020 will be brought forward to March 2020 and an additional RM100 will be paid into the bank accounts of all BSH recipients in May 2020.
Subsequently, an additional RM50 will be channelled in the form of e-tunai.
Previously, under the RM30 e-tunai Rakyat initiative, the government has set allocation of RM450 million.
With an annual income of RM100,000, Malaysians aged 18 and above are entitled to participate in the campaign that started off on Jan 15 and ends on March 14. Registration closed on March 9.
The three e-Wallet operators that are part of the initiatives were Touch n Go, Boost and GrabPay. -- BERNAMA