Rumours are rife that the government's bid to extend the the age limit for the full withdrawal of EPF savings is part of the regime’s ploy to 'manoeuvre' the funds for the general election.
KOTA KINABALU: The federal government has been told to keep its promise that there will be no change to the current policy for the full withdrawal of the Employees Provident Fund (EPF) savings by contributors even with the proposed extension of the minimum retirement age to 60.
Tawau MP Chua Soon Bui reminded that Human Resources Minister S Subramaniam had made this promise in his reply in Parliament after the debate on the Minimum Retirement Age Bill 2012 on June 27, which she also took part in.
Chua noted that many EPF contributors had expressed their grave concerns over the recent announcement by Deputy Human Resources Minister Donald Lim Siang Chai that the government is considering amending the EPF Act 1991 to raise the age for partial withdrawal by EPF contributors to 55, and full withdrawal to 60.
“Why is the government doing another ‘U-turn’ and not fulfilling what it had promised in Parliament earlier?” she asked.
Chua also said that currently, the major concern of the 12 million EPF contributors in the country is the RM144.5 billion (of RM440 billion) in loans given to government agencies.
Citing the government’s past track records of how it utilised the EPF money to bail out ailing government-linked companies (GLCs) like Malaysia Airlines (MAS) and the Putra Light Rail Transit which belonged to Renong, she said it was only natural that the contributors are now sceptical of whatever moves the government had in mind on EPF funds.
She said some people suspected that the proposed extension of the partial withdrawal of EPF savings to 55 years, and full withdrawal to 60, is part of the present regime’s ploy to “lock up” the funds for another five years.
This is so that there would be sufficient time and room for the present regime to “manoeuvre” the funds to its full advantage, including to fund the coming 13th general election.
She reiterated that the Barisan Nasional-led government must stop treating the EPF as its “piggy bank” by citing public interest.
Offer pension schemes
Chua also stressed that the contributors have the right to know what the loans disbursed to the government GLCs and agencies were utilised for.
“And this includes the recent RM1.5 billion for housing scheme in the Federal Territory, and RM1 billion for MAS, whether such borrowings come with surety for short- or long-term return for EPF,” she said.
Chua noted that the feedback which she gathered thus far had indicated that most EPF contributors wanted their EPF withdrawal to be maintained at 55, while others have been given options to leave their savings partially with EPF.
She said many people have opted for full withdrawal at 55, to use it for their children’s education, to venture into business, or to spend on their interests or hobbies.
Chua, who is also a vice-president of Sabah Progressive Party (SAPP), suggested that the EPF should provide more options of retirement and pension schemes, for both public and private sectors.
“The options may include total withdrawal of EPF at age 55, or progressive withdrawal from age 55, which is a popular practice in Singapore and Hong Kong. Lump sum withdrawal should also be given in case of emergency, and not necessary limited to what is stipulated now,” she said.
She contended that the government should not assume that the people or the EPF contributors do not have the knowledge in managing their pensions.
“They only need to be given a choice of various pension planning schemes and they will be able to plan their retirement more effectively when the minimum age of retirement is extended to 60,” she said.
pengeluaran EPF pada usia 60 tahun mgkin terlalu lama bagi pencarum, sebaiknya biarlah pencarum diberi pilihan samada nak keluarkan wang simpanan mereka pada usia 55 atau 60 tahun.
ReplyDeleteLebih flexible kalau diberi pilihan
DeleteBetul...EPF adalah simpanan masa hadapan rakyat maka tidak sepatutnya digunakan.
ReplyDeleteI think that depend on the person also. the person can choose.
ReplyDelete
ReplyDeleteThe Employees Provident Fund (EPF) has turned net buyers of blue chip stocks, acquiring an estimated RM2.2 billion worth of stocks over the past two months.
In March this year, when word got out that EPF was net seller of stocks, retail investors also cooled down their interest in the equity market here.
DeleteAnalysts said that the latest accumulation spree has helped the benchmark FTSE Bursa Malaysia KLCI to achieve its all-time high of 1,645 points on July 18.
DeleteEPF's buying has helped push the KLCI over the past two months. In some ways, it is good that EPF is doing this, as it helps to instill confidence in the market," said Inter-Pacific Securities head of research Pong Teng Siew.
DeleteA look at the benchmark index component stocks showed that EPF was net buyer in 15 component stocks and net seller in nine stocks.
DeleteAmong notable purchases over the past two months include net buys of over 103 million shares in Malayan Banking Bhd worth at least RM893.5 million, 42 million Axiata Group Bhd shares worth at least RM223.44 million, and over 80 million Telekom Malaysia shares worth over RM441 million.
DeleteNotable sells during the period include 19 million Public Bank Bhd shares worth RM280 million, five million Hong Leong Bank Bhd shares worth RM69 million and seven million Tenaga Nasio-nal Bhd shares worth RM47.8 million.
DeleteEPF was also net seller for the two out of the four plantation stocks in the benchmark index - IOI Corp Bhd and Kuala Lumpur Kepong Bhd.
DeleteIt appears that there is a portfolio shift in terms of allocation. The reduction of exposure in plantation stocks is understandable, as crude palm oil prices tend to be lower between April and October. As for its increasing exposure in telco stocks, I believe it's partly to do with the stocks' defensive nature," added Pong.
DeleteDuring these two months, there were 12 FBMKLCI component stocks that hit its 52-week high, they include Tenaga Nasional Bhd, Public Bank Bhd, Maxis Bhd, DiGi.Com Bhd, Axiata Group, Telekom Malaysia Bhd, Petronas Dagangan Bhd, UMW Holdings Bhd, YTL Corp Bhd and more.
DeleteWhile the buying from EPF has helped push these blue chip stocks and benchmark upwards, I believe it has not helped lift the confidence of retail investors, as liquidity and turnover on second-liner stocks, medium to small cap stocks, remained at a low level," said another research head from a local brokerage.
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