Proposal to opt out of EPF contributions

> Exemption only for a year as people ‘need to survive’, says Perak Chamber president

IPOH: To ease the financial burden of the people due to the high cost of living, the Perak Chinese Chamber of Commerce and Industry (PCCCI) has proposed that the government consider allowing employees to opt out in the contribution of Employees Provident Fund (EPF) savings for a year.

Chamber president Datuk Liew Sew Yee said looking at a working population of some 13 million, with an average salary of RM2,000 a month, it involves about RM6.24 billion a month.

“This adds up to the additional spending power injected into the market with extra cash,” he said at PCCCI’s Chinese New Year open house here on Sunday.

“There is practically no cumbersome administrative effort needed to have the system executed,” he added.

Liew said although there will be arguments on foregoing the EPF contributions, it is just temporary.

“People and businesses have to survive, if they are unable to survive short-term, there is no long-term plan to talk about.”

Liew stressed that while businesses are experiencing hardship, they would not want to face competition from business entities created by government and its agencies.

“This will result in unfair practices and prevent the private sector from additional investment to help the economy move forward. The government should focus on implementing policies that facilitate the private sector growth, especially with the current economic slowdown.”

Liew also urged small and medium entrepreneurs to put in a serious effort to embrace the new journey towards Industry 4.0, which is the current trend of automation and data exchange in manufacturing technologies and moving forward industrial IOT (Internet of Things).