Lead by example, take 50% pay cut, MPs told

 

CAP president Mohideen Abdul Kader says all MPs should have their pay halved and perks ‘slashed’.

PETALING JAYA: A consumers’ group has called on MPs and executives of government-linked companies (GLCs) to take big pay cuts to help finance stimulus measures so that Employees Provident Fund (EPF) contributors do not have to dig into their savings.

The Consumers’ Association of Penang (CAP) said all MPs should have their pay halved and see their perks “slashed”, which would mean “leadership by example”.

CAP president Mohideen Abdul Kader also proposed that top executives at GLCs have their salaries cut by 25%, citing a study that found the average pay for such executives to be RM5.5 million a year.

“CAP is against the idea of contributors dipping into their EPF accounts,” Mohideen said in a statement. “The government has to provide an economic stimulus package that extends aid to those out of jobs rather than ask them to use their savings to stimulate the economy”.

Mohideen Abdul Kader.

Among the budget proposals tabled last Friday is one allowing retrenched EPF contributors to withdraw up to RM500 a month for 12 months from their Account 1.

“We are reiterating our stand that account holders should not be allowed to withdraw their savings because they would be withdrawing and spending their savings meant for retirement,” he said.

He said they would also receive less in dividends.

Mohideen also took aim at the RM85.5 million allocation made to the Special Affairs Department (JASA) under the communications and multimedia ministry, saying that public healthcare, small- and medium-sized enterprises and job creation were more pressing issues.

“If these problems are not prioritised and attended to, no amount of digital infrastructure development by JASA is going to help,” he said. - FMT