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MTUC against proposal to tap into EPF

KUALA LUMPUR: The Malaysian Trades Union Congress (MTUC) has criticised the Finance Ministry's proposal to allow i-Sinar 2.0 withdrawal from the Employees Provident Fund (EPF).

Its secretary-general Kamarul Baharin Mansor in a statement said the proposal was not discussed with stakeholders, such as MTUC and the Malaysian Employers Federation (MEF), despite the matter involving employees' old age savings.

"It is the duty and responsibility of the government to raise funds to assist the employees.

"The government should not take credit for rendering assistance to the employees when the monies are from the employees' old age savings," he said.

He added that i-Lestari and i-Sinar facilities have been implemented previously, where employees' had sacrificed their savings and helped boost the country's economy.

"As such we are against the proposal to tap into the employees' old age savings. The government should be responsible by helping to replenish the employees' savings by providing various incentives to enable employees to retire comfortably.".

Kamarul Baharin said MTUC urges the government to assist B40 and M40 groups at an amount of RM1,200 per month, and find other sources for that purpose.

"The government should not take an easy way by withdrawing employees' old age savings."

In the same statement, Kamarul Baharin said MTUC has also demanded for an automatic moratorium for six months be given to all citizens.

"The implementation of Moratorium 1.0 had successfully helped the employees.

"The banks were still enjoying good profits, which is an indication that banks should grant an automatic Moratorium 2.0.

"The government needs to put pressure on banks to jointly share profits with the implementation of this automatic moratorium."

Kamarul Baharin also said EPF should appoint MTUC representatives on its board of directors.

"The participation of MTUC representatives is critical to safeguarding the employees' savings," he said, adding that MTUC had sent three letters to the Finance Ministry for that purpose.

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