Pointing to alarming statistics on Employees Provident Fund (EPF) contributors, former DAP lawmaker Charles Santiago has urged the government to adopt a more targeted approach for its Rahmah Necessities Aid (Sara) initiative.
Under Sara, adult Malaysians will receive a one-off RM100 assistance in conjunction with this year’s National Day celebrations.
However, Charles argued that the funds would have a greater impact if directed to EPF accounts with less than RM10,000.
“That would’ve been bold, targeted, and actually something to cheer about. Why a top-up? Because 6.3 million EPF contributors have less than RM10,000 in their accounts.
“That’s not a safety net, but a crisis waiting to happen. A targeted injection would be a long-overdue step toward rebuilding dignity and security for millions,” said the former Klang MP.
He cited a 2023 Finance Ministry statement warning that EPF savings had reached a critical low, with 6.3 million members under the age of 55 holding less than RM10,000 in their accounts as of September that year.
While Charles did not propose a specific top-up amount, a rough calculation based on the RM2 billion allocated for the one-off Sara aid suggests that the government could have injected RM317 into each of the 6.3 million EPF accounts with under RM10,000.
‘Learn from Singapore’
The former MP also urged the government to emulate Singapore’s Central Provident Fund model, which he said includes mandatory employer contributions and regular state top-ups, especially for low-income workers and senior citizens.
“Retirement shouldn’t mean poverty. To make the system stable, there must be regular top-ups from the government, employers, and through broader social protection schemes. Without fresh contributions, no retirement model can survive,” he said.
On July 23, Prime Minister Anwar Ibrahim announced several financial assistance programmes for the rakyat, including lowering the price of petrol by six sen to RM1.99 before the end of September.
Besides cheaper RON95, the prime minister also announced that in conjunction with National Day this year, all Malaysians aged 18 and above will receive a one-off RM100 Sara aid to purchase groceries and household goods.
The aid will be disbursed via MyKad and is valid from Aug 31 to Dec 31. It can be claimed through over 4,100 participating supermarkets and stores nationwide. - Mkini
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.