To spur the Nation economic growth on the expense of the peoples' retirement savings in Employee Provident Fund (EPF). The laymen and lower working class group hails the move to reduce the employee's EPF deduction as a generous effort by the government to help during economic slowdown. It seems that in the near term the rakyat will have more money in hand.
But it is actually a very diabolical and irresponsible act, a short-term measure to ensure the economic records growth. By reducing the deduction, more cash will be available in the hands of the people and more spending power. In other word, the government is prompting the peoples to spend more. By spending more, it would stimulate demand in the domestic market and therefore incite consumer spending. GDP figure will improve.
In the long-term the people/EPF member will suffer especially the lower income group, where at the end of their service age, would found out that their retirement savings is barely enough to sustain a couple of years only.
Before implementing the policy, employers should brief in detail of the pro and contra of their options, reduce or maintain the deduction. This is the time for the employee to increase their saving instead of spending. The government should be more prudent and do an indepth study before implementing any policy, this is the second biggest boo-boo the government made, the first was in June this year, hiking the fuel price by more than 40%.
All working Malaysian and EPF contributor/members must alert and be well inform of the implication of such a move. Inflation is forever increasing and goods are getting more expensive, by 5 to 10 years the savings in EPF may not be sufficient and by then we will see a lot more old folks working like we see now as security guards, kitchen helper etc., etc. instead of enjoying their retirement benefit.
The new Finance Minister cum Prime Minister-in-waiting should be more farsighted, sensible and practical in your decision.
But it is actually a very diabolical and irresponsible act, a short-term measure to ensure the economic records growth. By reducing the deduction, more cash will be available in the hands of the people and more spending power. In other word, the government is prompting the peoples to spend more. By spending more, it would stimulate demand in the domestic market and therefore incite consumer spending. GDP figure will improve.
In the long-term the people/EPF member will suffer especially the lower income group, where at the end of their service age, would found out that their retirement savings is barely enough to sustain a couple of years only.
Before implementing the policy, employers should brief in detail of the pro and contra of their options, reduce or maintain the deduction. This is the time for the employee to increase their saving instead of spending. The government should be more prudent and do an indepth study before implementing any policy, this is the second biggest boo-boo the government made, the first was in June this year, hiking the fuel price by more than 40%.
All working Malaysian and EPF contributor/members must alert and be well inform of the implication of such a move. Inflation is forever increasing and goods are getting more expensive, by 5 to 10 years the savings in EPF may not be sufficient and by then we will see a lot more old folks working like we see now as security guards, kitchen helper etc., etc. instead of enjoying their retirement benefit.
The new Finance Minister cum Prime Minister-in-waiting should be more farsighted, sensible and practical in your decision.
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