BY LILIANA SHERYN
KUCHING: The proposal to raise the employers’ Employees Provident Fund (EPF) contribution, which will be brought to the Cabinet for discussion, has garnered public attention and mixed opinion on the matter.
Prime Minister Datuk Seri Anwar Ibrahim had announced the forthcoming deliberation in response to demands from various unions aimed to bolster employees’ retirement funds.
Earlier the Uni Malaysia Labour Centre (Uni-MLC) urged the government to increase the EPF contribution from 13 per cent to 20 per cent for individuals earning RM4,000 and below.
New Sarawak Tribune met with members of the public to get their feedback and views on the issue.
LINDSAY ROGENE, 32
Teacher
In my opinion, the proposed increment of employers’ EPF contribution raises valid concerns. The potential burden on employers, with additional costs that can reduce profitability and competitiveness, is a significant factor to consider. Moreover, the impact on employees’ take-home pay, potentially lower due to the increased EPF contribution rate, can pose challenges for managing monthly expenses. I also recognise the difficulties faced by Malaysians, especially those with low income or financial hardship, in accumulating sufficient retirement savings. Ultimately, one’s stance on this proposal depends on individual priorities, economic circumstances, and beliefs in the effectiveness of the EPF as a retirement savings vehicle.
JOO EVANNOEL PATRICK SIBAT, 38
Sales and Marketing Executive
In my personal opinion, I have mixed views on the proposed increment of employers’ EPF contribution. While I believe a balanced distribution between employees and employers is necessary, the current economic situation suggests that such an increment can burden the B40 group and worsen their financial situation due to the already high cost of living. However, I do see the long-term benefits of this increment as it aligns with the EPF’s purpose for the future. At present, I oppose the increment unless the government addresses the issue of high living costs.
GILLESPIE PANI, 36
Teacher
If the increment is reasonable, it will benefit us on a micro and macro level, attracting investors and improving the economy. However, in the short term, the increment may pose challenges for small and medium-sized enterprises, leading to salary increases and job cuts, affecting the employment rate and employers’ willingness to hire new workers. Other factors include the need for a comfortable retirement, economic conditions, and the impact on small businesses and workers’ welfare.
SHARENE CONELLIA AUGUSTINE, 39
Educator
Increment of employer’s EPF contribution? Yes, I agree. I believe that the proposed increment is beneficial for both employers and employees, although some may view it as a burden. The factors influencing my agreement include the need to increase members’ retirement savings, mitigate the impact of Malaysia’s rapidly aging population, and promote better financial preparedness for individuals, fostering a lifelong journey of financial well-being.
FABIAN GUBAR, 36
Business Development Executive
In the face of the challenging economic climate, I firmly oppose the proposed increase in employer’s EPF contribution. While it may seem beneficial for individuals aiming to boost their savings, it will burden employers and hinder business growth. This move will particularly hit small and medium enterprises, leading to significant setbacks and immense hardships in their operations. Consequently, some employers might reduce their hiring efforts to offset the increased EPF contribution, reducing opportunities for job seekers and exacerbating unemployment rates. Existing employees will also experience a direct impact on their cash flow, leading to a decline in purchasing power due to limited withdrawal options for contributions.
