MTUC calls for B40 stimulus after EPF expressed concerns on i-Lestari withdrawals

The Malaysian Trades Union Congress (MTUC) called on the government to suspend the EPF i-Lestari withdrawal scheme and replace it with a stimulus package for B40 workers (Malaysians in the bottom 40 percent of national household income).

This is after EPF chief executive Alizakri Alias expressed concerns on how fast some members had exhausted their savings.

"We are fairly worried because some of our members have already exhausted their Account 2 after two months. That's only RM1,000 in Account 2 (RM500 per month for two months)," Alizakri was quoted as saying by The Edge yesterday.

MTUC secretary-general J Solomon said this proved their warnings right, that those who need the savings in their old age the most, would become 'victims' of the i-Lestari scheme.

"The fact is most of these workers need the RM500 per month subsidy badly to survive, with many having lost their jobs or taken huge pay cuts.

"In view of this, MTUC is calling for the government to convert this scheme to an RM500 per month cash aid for B40 workers with immediate effect. This will help the B40 workers keep their EPF savings for their old-age," Solomon said in a statement today.

He said the government can find the funds to do this from either its reserves or by slashing operational costs and overheads in GLCs and government departments.

According to the EPF, a majority of the 4.1 million applications for the i-Lestari Account 2 withdrawals were from the B40 group.

Solomon said the i-Lestari scheme needs to be suspended immediately before more workers lose their long-term security.

"The burden will be on the government to take care of this group when they are aged and do not have enough savings to help them or even children who can afford to take care of them.

"We will have a huge social problem in our hands as a result," he said. - Mkini