24 February 2020

Strong economy? Weakest EPF dividend in 11 years?

The nation’s economic decline is evident as the Employees Provident Fund’s (EPF) dividend was announced to be 5.45%, the lowest in 11 years.

Yet, Finance Minister Lim Guan Eng remained strangely optimistic of the current situation. In the past, Lim cited the increase in exports and the economic growth in the fourth quartre (Q4) of 2018 as the basis for his prediction of a steady economy for 2019. In spite of that, the drop from 6.15% in 2018 to 5.45% in 2019 for the EPF dividend thus refutes his predictions.

When will Guan Eng face reality? Prices of goods did not fall after the abolition of the GST and the introduction of SST, the Ringgit’s value depreciated, and foreign investors have pulled out of the Malaysian market. Moreover, the lack of an economic stimulus package in the midst of the Covid-19 outbreak further seals our economy’s fate.

EPF savings is vital to ensure a comfortable retirement; with EPF weakening under PH’s mismanagement, how can the people place their trust in PH?

More worryingly, a few PH-led state governments have reported increasing the assessment rates and quit rents while introducing new taxes. The salaries and allowances of ADUNs and executive councillors have been raised, while the people are in a pinch due to the past charity initiatives by BN being abolished for alleged “wastage” by PH.

If the nation’s economy did indeed improve, Guan Eng should have EPF announce a higher dividend upwards of 8% to safeguard the welfare of retirees.

Sdr. Mike Chong Yew Chuan

MCA spokesperson

-MCA online-