Retailers propose 3pc cut in EPF contribution
KUALA LUMPUR: A proposal to temporarily reduce workers’ contribution to the Employees Provident Fund (EPF) by three per cent has been forwarded to the government to mitigate the economic impact of the novel coronavirus (2019-nCoV) outbreak.
The Malaysia Retailers Association (MRA) and the Malaysia Retailers Chain Association (MRCA) said putting more cash into people’s pocket would stimulate domestic consumption and assist the local retail market.
MRA and MRCA also proposed a 50 per cent reduction in electricity tariffs to retailers and shopping malls to help lower their operational costs.
“Another immediate measure that can be taken is to halt the levy payment to HRDF (Human Resources Development Fund), thus supporting retail businesses to face a slowdown in sales and cope with cash flow constraints,” said a joint statement by MRCA president Datuk Seri Garry Chua and MRA president James Loke.
The associations urged the government to introduce a stimulus budget and relief package that would support businesses and its employees following the outbreak.
The stimulus package should include measures to address 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 announced that the government was considering a stimulus package to cushion the economic impact of the 2019-nCoV outbreak that had killed more than 600 people in China to date.
The stimulus package, said Azmin, would not only be a shot in the arm for the economy, but also for the safety and well-being of the people.
He had said that the ministry had allocated RM227 million this year for the purchase of medical and non-medical equipment for all health facilities nationwide.