GEORGE TOWN, Nov 3 ― It is not a good idea to allow contributors to withdraw funds from their Employees Provident Fund (EPF) Account 1 to tide them over amid the Covid-19 pandemic, said Tan Sri Mohd Yussof Latiff.
The Penang Malay Association (Pemenang) president said EPF Account 1 is meant for the future of the contributors and should not be withdrawn now.
“If the government allows them to withdraw from it now, they may allow them to do it again in the future, but this fund is supposed to be reserved for their future,” he said.
He said the government should consider allocating more aid under the 2021 Budget to help those badly affected by the Covid-19 pandemic, such as those who have lost their income or jobs.
He said the budget should focus on the welfare of the people who have been affected by the pandemic and the current economic uncertainty.
“The government should be handing out more aid such as allowances to those in need and address the increase in the unemployment rate,” he said in a press conference at his office today.
He said many are now struggling to survive so it would also be advisable for the government to also consider extending the loan moratorium.
While he agreed that the government had provided a lot of assistance at the start of the pandemic, he believes that the government should continue giving hand-outs to the people.
“This is not pampering the people or giving them a luxury life, they are struggling to put food on the table so the government needs to step in to help them meet their basic needs for now,” he said.
He claimed many people are resorting to delivering food to earn extra income to support their families.
“Families have to pay rent or housing loans, bills and other commitments too so an extended loan moratorium would also relieve some of their burden,” he said.
He added that the moratorium can be for a short term between three and six months until the pandemic is over.
He suggested that Bank Negara Malaysia consider introducing special grants to debtors as it had done in the past during recessions.
Yussof said if the government does not have enough funds to give more handouts to the people, it should consider borrowing money from other countries.
“The government has borrowed funds for infrastructure projects before this so they can do the same but this is for people’s welfare,” he said.
He said the government could also dip into the funds of its many government-linked companies (GLC) that had reaped profits for many years before this.
“Maybe it is time these GLCs contribute parts of the profits for the welfare of the people,” he said.
He reminded the government that the people are looking to the government for aid in their time of need, ahead of the tabling of Budget 2021 this Friday.
“If the people are dissatisfied, it might destroy the administration and this might lead to unwanted incidents that could further affect our country,” he said.